Note: Answer all the questions and submit this assignment on or before 31 st October 2011, to the coordinator of your study center.

1. “Managerial Economics is Economics applied to problems of choices and allocation of scarce resources.” Discuss with the help of an example how a manager solves this problem in a most efficient manner.

2. Given the individual consumer’s demand curve is P=100 – 2Q. Find the quantity the consumer would purchase at a price of Rs. 10.

• 3. In the long run there are no fixed cost functions (total or average) since no inputs are fixed. Explain how this helps a producer in making his future decisions.

• 4. Describe a Cartel. How the pricing decisions are arrived at?

• 5. Write short notes on the following :

a) Delphi Technique

• b) Economic Profit
• c) Multipart pricing