ASSIGNMENT

Course Code : MS-09

Course Title : Managerial Economics

Assignment Code : MS-09/TMA/SEM-I/2016

Coverage : All Blocks

Note : Attempt all the questions and submit this assignment on or before 30th April, 2016 to the coordinator of your study centre.

1. “Sales- revenue maximization” is the main objective of a firm. Discuss this statement with the help of an example.

2. “The main determinant of elasticity is the availability of substitutes.” Explain this statement in the context of price elasticity of demand.

3. Answer the following:-

(a) Explain average cost and marginal cost

(b) Find (i) marginal cost and (ii) the average cost functions for the following total cost function. Calculate them at Q=4 and Q=6 TC=5Q2 +10Q+12

4. Does Price Discrimination exist in the real world? Discuss with reference to any particular product or service of your choice.

5. “Classification of markets is based on their characteristics.” Substantiate this statement taking examples from Monopoly and Oligopoly market structures in real world.

6. Write short notes on the following:-

(a) The Law of Demand

(b) Peak Load Pricing

(c) Alternative costs.