1. “A close relationship between management and economics has led to the development of managerial economics.” Explain this statement
2. Given a firm’s demand function, P = 24 - 0.5Q and the average cost function, AC = Q2 – 8Q + 36 + 3/Q, calculate the level of output Q which a) maximizes total revenue
b) maximizes profits
3. Briefly describe the Optimal Combination of inputs with the help of an example.
4. Does Price Discrimination exist in the real world? Discuss with reference to any particular product or service.
5. Write short notes on the following :-
a) Market Demand Schedule
b) Peak Load Pricing
c) Income Elasticity of Demand