Sample Paper 2

SP Jain Center of Management, Dubai

Professor H. Mankad

Final Exam – 20^th May 2010

Batch – April 2010 batch

Duration – 3 Hours

Open Book/Notes/Black Board, Hard Copy Submission, No Internet

Question 1 (25 marks)

Write a detailed explanatory note with appropriate examples on any one of the following

a) Changing demographics structure and its impact on Managerial Economics

b) The story of oil prices is a never ending story

c) Lessons learned from Managerial Economics forms the base for success of business

Question 2 (40 Marks)

Explain any four of the following statements. Your explanation needs to cover the meaning as well as context of the statement. Practical examples and sketches of diagrams, where required, will enrich your response.

a) Government interventions improve market outcomes

b) Perfect competition is an illusion (No need to explain equilibrium under perfect competition)

c) Firms rarely aim at maximum profits. Their goals are many and varied.

d) The price / product outcome of oligopoly depends on the nature of the oligopoly. It may vary from case to case

e) Porter’s 5 force model bridges gap between theory and practice of Micro-economics (Please do not explain Porter’s model)

f) Present day businesses will survive competition only with reduced cost. And cost can be reduced in many ways.

g) Sellers in the real world compete, but rarely on the basis of price

h) The phenomenal growth of Reliance (or any other specified corporation of your choice) teaches many lessons in economics and business

Question 3 (15 + 10 Marks)

a) Discuss in detail 2 important variables that influence the profitability of any business. Support your answer with appropriate real life examples

b) Identify and discuss 2 important variables that will influence profitability of any two of the following business (You are free to assume the nature and scope of the product, but specify these assumptions)

i. A Chain of modern uni-sex beauty parlors

ii. An education institute offering 1-year certification course in Mandarin (Chinese language) in a real time distance learning mode through Internet

iii. A publisher of new life style magazine for Odyssey generation

iv. A new health food manufacturing company

v. A consumer electronics store catering to middle income neighborhood