This document is an assignment for a managerial economics course covering various topics: 1) It provides a profit table and asks to calculate total profit, average profit, marginal profit, and differentiate between incrementalism and marginalism. 2) It defines price elasticity and asks to explain the determinants of price elasticity. 3) It asks to substantiate the difference between how economists and accountants view fixed costs, using an example. 4) It asks to discuss the effect of a change in demand on price and quantity with reference to market pricing analysis and illustrations. 5) It provides short note questions on market experiments, bundling of services, and product differentiation.

1. MS-09
Management Programme
ASSIGNMENT
FIRST SEMESTER
2011
MS-09: MANAGERIAL ECONOMICS
School of Management Studies
INDIRA GANDHI NATIONAL OPEN UNIVERSITY
MAIDAN GARHI, NEW DELHI – 110 068

2. ASSIGNMENT
Course Code : MS-9
Course Title : Managerial Economics
Assignment Code : 9/TMA/SEM-I/2011
Coverage : All Blocks
Note: Assignments Solved by www.distpub.com
1. Given the profit function of a firm in the form of table, calculate total profit,
average profit and marginal profit and differentiate between incrementalism
and marginalism.
Unit of Total Total Total Average Marginal
Output Revenue Cost Profit Profit Profit
1 10 5
2 30 18
3 50 29
4 70 38
2. Define Price Elasticity. Explain the determinants of Price Elasticity.
3. ‘To an economist the fixed costs are overhead costs and to an accountant
these are indirect costs.’ Substantiate this statement with the help of an
example.
4. What effect does change in demand have on price and quantity? Discuss
with reference to pricing analysis of markets by giving illustrations.
5. Write short notes on the following :-
a) Market Experiments
b) Bundling of services
c) Product Differentiation