Sample Paper

SP Jain Center of Management, Dubai

Professor H. Mankad

Retest – January 2011

Duration – 2 Hours 30 Minutes

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

Question 1 (16 marks)

Write Explanatory notes with appropriate examples on any one of the following

a) Price Discrimination

b) Changing Demographic structure and its impact on Managerial Economics

c) Assumption of ‘rationality’ and the role of expectation in microeconomics

d) Technological Connectivity and its influence on Managerial Economics

e) Changing Consumer landscape and its influence on Managerial Economics

(Evaluation Criterion: Superior Response – 11 or more marks, Average response 7-10 marks, inadequate, poor and / or sketchy response 6 marks or less)

Question 2 (14 + 6 = 20 Marks)

a) Discuss in Detail two important variables that influence the pricing of any product or service. Support your response with appropriate real life examples.

b) Identify & discuss two important variables that will influence pricing of any two of the following businesses: (You are free to assume the nature * scope of the product or services but specify these assumptions)

I. Prime Time (8 p.m. to 10 p.m.) Rate of advertising on a newly launched 24 Hour TV news Channel

II. A One year certification Course in Arabic offered in a real time distance-learning mode through Internet

III. A New low fat chocolate introduced by an MNC

IV. Branded contact lenses for the eyes

V. Admission prices to a charity concert of a renowned musician

(Please note that in the sub-segment of this question 2b, you have to discuss the 2 variables that influence pricing. You are not required to suggest and justify a specific price)

Question 3 (24 Marks)

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

a) Government often intervene to improve market outcomes

b) Happy is the business that sells to a market that is income elastic and price inelastic

c) Perfect competition is an illusion

d) In recent years, technology has helped bring about fairer competition

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

f) Economics is all about tradeoffs

g) Pricing the ‘new economy’ products is an exercise in guess work and has no theory back up

h) Not all situations where a monopolist charges high monopoly price at home and low competitive prices abroad can be classified as ‘dumping’.

(Evaluation Criterion: Superior Response – 7-8 Marks, Average Response – 4-6 marks, Inadequate, poor and / or sketchy response 3 marks or less)