This document contains 3 questions from an MBA semester 1 class on managerial economics. The first question defines elasticity of supply as the responsiveness of producers to changes in price and lists factors like time period and type of inputs that determine elasticity. The second question defines perfect competition as a market with many small producers and consumers, homogeneous products, free entry and exit, and perfect information. It asks about features of monopolistic competition. The third question defines different cost concepts like total, variable, average and marginal costs. It provides a hypothetical cost schedule and asks to plot the corresponding cost curves on a diagram.

1. MBA Semester 1
MBA105 - MANAGERIAL ECONOMICS
Q1. Define Elasticity of Supply? Explain the factors determining Elasticity of Supply?
Responsiveness of producers to changes in the price of their goods or services. As a general
rule, if prices rise so does the supply.
Elasticity of supply is measured as the ratio of proportionate change in the quantity supplied to
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Q2. What is Perfect Competition and also mention the features of Perfect Competition?
Explain the different characteristics of Monopolistic Competition?
Perfect competition is a comprehensive term which includes pure competition too. Before we
discuss the details of perfect competition, it is necessary to have a clear idea regarding the
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Q3. A cost-schedule is a statement of variations in costs resulting from variations in the
levels of Output and it shows the response of costs to changes in output. If we represent
the relationship between changes in the level of output and costs of production, we get
different Types of cost curves in the short run. Define the kinds of cost concepts like TFC,
TVC, TC, AFC, AVC, AC and MC and its corresponding curves with suitable diagrams
for each.
A cost-schedule is a statement of variations in costs resulting from variations in the levels of
output. It shows the response of costs to changes in output. Below Table represents a
hypothetical cost schedule of a firm.
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