F C192067 Pages: 2

Reg No.: Name:

APJ ABDUL KALAM TECHNOLOGICAL UNIVERSITY
THIRD SEMESTER B.TECH DEGREE EXAMINATION(R&S), DECEMBER 2019

Course Code: HS200
Course Name: BUSINESS ECONOMICS

Max. Marks: 100 Duration: 3 Hours
PARTA

Answer any three questions, each carries10 marks. Marks
1 a) What is the relevance of Business Economics in modern business? (5)
b) Why does the problem of choice arise in an economy? (3)
c) What is opportunity cost? (2)
2 ഒ) State the law of diminishing marginal utility. What are its assumptions? (5)
b) Briefly explain any three factors determining demand of a product. (3)
c) What is an inferior good? (2)

3 ஐ How is market price of a commodity determined? Suppose there is a change in (6)
fashion favourable to a commodity. What happens to its equilibrium price and
quantity, if there is no change in supply conditions? Draw a diagram and explain.

b) Suppose a consumer purchased 50 units of a commodity when his monthly (4)
income was Rs.15000/-. When his income increased to Rs.20000/- he purchased
40 units of this commodity. Estimate income elasticity of demand? What type of
a commodity is this?
4 a) What is a production function? Explain Cobb-Douglas production function. (6)
0) A firm's production function is given as Q = 2 L'? K'”, What will be the output (4)
when L=25 and K=9? Suppose the firm increases the number of units of capital
to 16 and they want to produce 80 units of output. What should be the number of
units of labour?
PART B
Answer any three questions, each carries10 marks.
5 9७) What is MC? In short run changes in MC depends on the changes in TVC. Why? (൭)
b) Suppose the AC of a firm is greater than price and price is greater than AVC. (3)
Will the firm produce or shut down? Give reason.
€) Suppose contribution per unit of output sold is Rs.10 and TFC is Rs.10000. What (2)
is the break-even output? If actual sales is 1200 units estimate margin of safety.

6 a) Explain any 4 features of monopoly? Make a comparison between the demand (6)

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