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Reg No.:_ Name:

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

Course Code: HS200
Course Name: BUSINESS ECONOMICS

Max. Marks: 100 Duration: 3 Hours
PARTA
Answer any three questions, each carries10 marks. Marks
1 8) How does Business Economics help a business man? (5)
0) What are the three central problems of an economy? (3)
c) How is Economics defined in terms of scarcity of resources? (2)

2 98) Draw a total utility curve and marginal utility curve and derive three relations (5)
between MU and TU.
b) Explain the law of demand with the help of a demand schedule. (3)
c) Give any two exceptions of law of demand. (2)
3 9) How is equilibrium price of a commodity determined? Suppose cost of (6)
production of a commodity increases. How does it affect supply as well as
equilibrium price? Substantiate your answer with a diagram.
b) Suppose 50 unitsof commodity X was demanded when it's price was Rs.10 per (4)
unit. Later it's demand decreased to 40 units without any change in its price. It
has been found that the price of a similar product Ydecreased from Rs.10 to 8.
Estimate cross elasticity of demand between the products X and Y.
4 a) State the law of variable proportions. Explain the law with the help of adiagram. (6)

0) i) A production function is given as Q = 3 L'4 K*4 . This is a linearly (4)

homogeneous production function. Why? ii) If L=16 and K=6, what will be the

output?
PART B
Answer any three questions, each carries10 marks.
5 ஐ) Distinguish between TFC and TVC. Draw TFC and TVC and TCcurves (5)

b) Suppose the average cost of a product is Rs.20 and average variable cost is (3)
Rs.15. If price of the product is Rs.18, will the firm continue its production in the
short run or shutdown? Give reason.
€) Suppose P.V ratio is 0.2 and fixed cost is Rs.10000. What is the break-even (2)
sales? If the price per unit is Rs.50 what is the break-even level of output?
6 93) Make acomparison between perfect competition and monopolistic competition. (6)

b) What is collusive oligopoly? (4)

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