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This particular Assignment references the syllabus chosen for the subject of Economics, for the January 2024 - July 2024 session. The code for the assignment is MS-09 and it is often used by students who are enrolled in the MBA (MS) Degree.
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1. “Decision trees are particularly useful if sequential decision-making is involved.” In light of the above statement explain the concept of decision trees with the help of diagram.
2. Elaborate on the concept of Point Price Elasticity with the help of a numerical example.
3. “Several methods exist for the measurement of the actual cost-output relation for a particular firm or a group of firms.” Discuss the broad approaches such as accounting, engineering and econometrics for measuring the actual cost-output relation.
4. “The form of price discrimination, which is based on the volume of consumer purchases, is very common and is known as second degree price discrimination”. Explain second degree price discrimination with the help of an example and diagram.
5. The most extreme form of the collusive agreement is known as a cartel. Discuss profit maximization theory in detail.
6. Write short notes on the following:
1. “The definition of cost is quite different for the economist than for an accountant”. Discuss with the help of an income statement calculating both accounting as well as economic profit.
2. “Market demand curve is the total of the quantities demanded by all individual consumers in an economy at each price”. Show the derivation of market demand curve diagrammatically.
3. Explain the following concepts briefly:
(a) Price Elasticity of Demand
(b) Arc Elasticity of demand
4. Explain the relationship between Average Product, Marginal Product, and Average Variable Cost, Marginal Cost with the help of diagrams.
5. “Perfect competition and monopoly are two extreme market conditions which we rarely come across in real world of business”. Discuss their relevance in today’s business world. 6. Write short notes on the following:
(a) Product Differentiation
(b) Discounting Principle
(c) Returns to Scale
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