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Code No.: 420852 IV B.Tech II-Semester Examinations April 2003

MANAGERIAL ECONOMICS AND PRINCIPLES OF ACCOUNTANCY (Chemical Engineering) Max. Marks: 70 Answer any five questions All questions carry equal marks ---

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Time: 3 Hours

“Managerial economics bridges the gap between economic theory and business practice”. Discuss the statement and explain the nature and scope of managerial economics.

2.

What are the determinants of demand for consumers non-durable and durable goods and for capital goods? Explain the need for distinguishing between durable and non-durable goods in demand forecasting.

3.

Describe the general characteristics and managerial uses of production function.

4.

Explain the nature and utility of break-even analysis. What are the limitations of break-even analysis?

5.

What is perfect competition? Elucidate how price and output decisions are determined under conditions of perfect competition.

6.

What are the objectives of capital budgeting? Elucidate the nature of capital budgeting problem.

7.

What are the merits and limitations of partnership form of organization? Explain how a partnership form of organization overcomes the disadvantages of proprietorship form of organization.

8. a) b) c) d)

Write a note on the following: Principles of double entry book-keeping. Subsidiary books. Trial balance. Ratios.

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