8/13/2019 MBA: EFM IMPS Sem-1

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EFM Sem 1, MBA IMPs

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EFM

IMP Questions

1. How a firm operating in competitive market can maximize its profit in short run? Explain.

2. What is monopoly? Which are the reasons for arising of monopoly situation?

3. What is prisoner’s dilemma and what does it have to do with oligopoly?

4. Why is a monopolist’s marginal revenue less than the price of good? Can marginal revenue ever

be negative? Explain.

5. Why do economists use real GDP rather than nominal GDP to gauge economic wellbeing?

6. Draw diagrams depicting the long run equilibrium position of monopolistically competitive firm

and perfectly competitive firm. How they are different from each other?

7. Draw a circular-flow diagram representing the interactions between households and firms in a

simple economy. Explain briefly the various parts of the diagram.

8. Explain price elasticity of demand and the income elasticity of demand. Also explain the

determinants of the price elasticity of demand

9. Define total cost, average total cost and, and marginal cost. How are they related?

10. A demands Schedule for pens of student at ABC school is presented in the following table:

Find out the price elasticity of demand when the price changes from (i) Rs. 5/- to Rs. 3/- and (ii)

Rs. 3/- to Rs. 5/-

11. Explain the concept of price discrimination. Why a seller chooses to follow this business

strategy? Give two examples of price discrimination.

12. Ink Pens and pencils are substitutes. When the price of an ink pen falls, what happens to the

supply, demand, quantity supplied, quantity demanded, and price in the market for pencils.

13. Why do competitive firms stay in business if they make zero economic profit? Discuss.

14. Honest Juice Bar has the following cost schedules.

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Calculate AVC, TC & MC for each quantity, Graph all three curves. What is the relationship

between the marginal cost curve and the average total cost curve?

15. Explain the shift in the demand curve. List and explain the most important variables that can shift

the demand curve.

16. Explain the shift in the demand curve. List and explain the most important variables that can shift

the demand curve.

17. Differentiate: Monopolistic Competition and Perfect Competition.

18. Explain, what competitive firm is and under what conditions will a firm shutdown temporarily?

When firm would exit ?

19. Below are some data for an X economy, which produces only two goods A & B.

Calculate Nominal GDP, Real GDP & GDP Deflator for each year, using 2008 as a base year.

20. What are the Determinants of Supply?

Along with these, the Midterm Paper should also be reffered and treated as IMP.