KSBM – Managerial Economics-0As money costs will decrease due to decision to outsource human resource, some real costs and opportunity cost may surface. What could these be

As money costs will decrease due to decision

Managerial Economics



Q1. What would you recommend to the government to create a level playing field for the local firms and the western exporters of meat to India?

Q2. Can you cite any other typical product where India’s advantage turns into disadvantages as a result of WTO agreement?

Q3. Why do you think the absolute value of demand elasticity is less in the short run than in the long run?

Q4. Do you think jewelers as a commodity, can also be categorized in the same group as others in the given table? In other words, will it also exhibit change in the demand elasticity between the short and long run? Explain why?

Q5. The change in the value of demand elasticity between short and long run is much smaller in case of food than in clothing, what does this reflect about the consumer behavior?

a) Is there such a market in India for all the huge plans that they have ?

b) Can you support it as a case of economies of scope ?

c) Does it not lend to monopolistic conditions ? Give reasons.

Q6. Identify the most important factors of production in case of automobile industry. Also attempt to explain the relative significance of each of these factors.

Q7. What more information would you like to obtain in order to draw a production function for Maruti Udyog? Explain with logic.

Q8. Automobile industry is a good example of capital augmenting technical progres Discuss.

Q9. As money costs will decrease due to decision to outsource human resource, some real costs and opportunity cost may surface. What could these be?

Q10. Elaborate the external and internal economies of scale as occurring to Contract Counsel.

Q11. Can you see some possibility of economies of scope from the information given in the case? Discuss.

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