1
ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATIONS – OCTOBER 2013
BCOM – I SEMESTER
BUSINESS ECONOMICS – I
Time: 3 Hrs Max Marks: 100
SECTION – A
I) Answer ALL questions. Each carries 2 marks. (10 x 2 = 20)
1. Explain the term Market demand.
2. State the difference between a substitute and complementary good.
3. What is meant by Marginal utility?
4. Explain the concept of consumer surplus.
5. State the difference between contraction of demand and decrease of demand
6. What are Isoquant curves?
7. What are technical economies?
8. Explain Indifference map.
9. What is an opportunity cost? Give an example.
10. Explain the law of supply with a supply schedule.
Section – B
II) Answer any FOUR of the following questions. (4 x 5 = 20)
11. What is elasticity of demand? Calculate the price elasticity for the data given
below. .
Price Qty demanded.
25 35(kg)
28 32(Kg)
12. Explain TC, TVC, TFC, AC and MC with a mathematical table.
13. Explain the law of Equi marginality utility (one commodity) with the help of a
diagram.
14. With the help of the data below calculate the demand forecast for each of the
years and for the year 2013 and 2014.
Year 2008 2009 2010 2011 2012
Production(tons) 240 286 314 500 700
15. Explain the three important goals of business with suitable examples.
16. Explain the substitution effect with the help of a diagram.
2
SECTION – C
III) Answer any THREE out of FIVE questions. (3 x 15 = 45)
17. Explain the different degrees of price elasticity of demand.
18. Critically analyze the law of diminishing marginal utility.
19. State the meaning of a monopoly. Explain the price and output determination of
a monopoly firm
20. Explain producers Equilibrium with the help of a figure.
21. Explain the law of Variable Proportion with the help of a figure and table.
Section – D
IV) Case study – Compulsory question. (1 x 15 = 15)
22.
Timber and Co
Mr Timb has been running the Timbco furniture Co for the last 10 years in Tumkur. The
motive of starting timbco was to turn his teak estate in to secondary state of manufacturing
different types of wooden furniture from the wood drawn from his farm land. Timbco has been
very famous in the manufacture of computer tables, let alone their production of almirahs,
chairs , dining tableas among others. Their computer tables are mostly sold in Tamilnadu and
Gujarat. For the month of July 2013 their sales in T.N was 2500 tables @ Rs 3000 a table and in
Gujarat the sales was 2000 tables @ the rate of Rs 3400 a table. Timb wanted to change the price
in both states as the price of raw material increased. In T.N. he increased to Rs. 3200 and sales
came down to Rs. 2100 and in Gujarat he increased the prices of the same tables to 3500 but the
sales decreased to Rs. 1900.
Questions:
a. Find the cross elasticity between sales in Tamilnadu to Gujarat.
b. Find the breakeven and profits between Tamilnadu and Gujarat with the data of tables
given below
• Tamilnadu- the TFC incurred is Rs 200000/-, the AVC is Rs2000, price is Rs 3000 find
BEP and profits at 5000 units
• Gujarat- the TFC is Rs 200000/- , the AVC is Rs 2700, price is Rs 3100 find BEP and
Profits at 5000 units
Latest Govt Job & Exam Updates: