Engineering Economics and Financial Management MG2452-16 Marks Question Bank

UNIT I

1. Discuss the nature and scope of managerial economics

2. Discuss the relationship between managerial economics and other disciplines.

3. Describe cost of production in the long run average cost curve

4. Discuss the various types of firms.

UNIT II

1. Describe various demand forecasting techniques

2. Explain law of demand and its exception.

3. Explain the types of elasticity of supply and list out the various factors affecting the same.

4. Explain the different elasticity of supply.

UNIT III

1. Describe isoproduct curve and its features.

2. Explain long run average and short run average cost curves with neat sketch.

3. Describe production function with one variable input factor.

4. Explain in detail the returns to scale.

UNIT IV

1. Explain different pricing methods

2. Explain how price and output can be determined under monopoly.

3. Explain various cost based and competition based pricing methods.

4. Explain the features of perfect competition and discuss how price and output can be determined under perfect competition.

UNIT V

1. Explain the following: Net Present Value Method, Pay Back Period Method, Profitability Index Method and Internal Rate of Return Method.

2. Differentiate cash flow and fund flow statement. Discuss the advantages and limitations of financial statement analysis.

3. What is ratio analysis? Discuss the classification of ratio analysis.

From the following Profit and Loss Account of a company ascertain the following ratios.

1. Gross Profit Ratio

2. Net Profit Ratio

3. Operating Ratio

4. Operating Profit Ratio

5. Stock Turnover Ratio

Trading and Profit & Loss Account for the year ending 31.3.2005

Dr Cr

Particulars	Rs.	Particulars	Rs.
To opening stock	10000	By sales	56000
To purchases	44000	By closing stock	10000
To gross profit	20100
	66000		66000
To administration expenses	2000	By gross profit	20100
To selling expenses	8900	By dividend	10000
To interest	3000	By profit on sale of investments	800
To net profit	8000
	21900		21900