Bangalore is one of the oldest in India, dating back to 1886.

MBA Management Paper

Explain the concept of PPC and its linkage with Opportunity cost.
. How are cost relationships related to the principle of diminishing return ? Elucidate
With speCIaI reference to the shape of cost curves.
CO
. What are the types of price discrimination ? Which among them isjustifiable for
frequent fiyer scheme of airline industry ?
. How is the modern theory of rent an improvement over Ricardo's theory ?
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5. Briefly explain Cyert and March Behavioral theory of firm.
6. Distinguish between GNP and GDP.
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. A and B company Pvt Ltd. concludes the demand function for its X product is :
Ox = 1000 — 0.2 Px + 0.5 Py + 0.04Y + 0.01 A, where
0x = Quantity demanded of its product
Px = Price of x
Py = Price oi y (substitute to x)
Y = Consumers Income
A = Advertisement Expenditure
At present Px =100 Rs, Py = 120 Fis, y =10,000 Rs and A = 6,000 Rs
Calculate the following :
a) Price elasticity
b) Income elasticity
0) Advertisement elasticity
d) Cross elasticity
P.T.0.
Page 2
SECTION - B
Answerany three of the following questions. Each question carries 1 0 marks. Answer
to each question should not exceed 500 words. (3x1 0:30)
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12.
Show with the help of indifference curves how a— consumer reaches equilibrium.
Price rigidity is an essential aspect of normal oligopolistic price strategy’. Discuss
with the help of kinked demand curve.
Discuss the short and long run equilibrium of the firm under perfect competition
with the help of suitable diagrams. Why do you think the firm is able to make only
normal profit in the long run ?
A company has the following data :
Year Sales
1980 7 100
1981 107
1982 128
1983 140
1984 181
1985“ 192
Estimate sales for 1986









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