www.Vidyarthiplus.com Anna University B.E./B.Tech. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2010 Fifth Semester

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MG 2452 —ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING

(Regulation 2008)

Time : Three hours Maximum : 100 Marks Answer ALL questions

PART A — (10 × 2 = 20 Marks)

1. Define Managerial Economics. 2. Define the concept of Firm. 3. State law of supply with diagram. 4. Define Elasticity of Demand. 5. What do you mean by Money cost and Real cost? 6. Give two examples for implicit cost and explicit cost. 7. State Capital Budgeting and Investment with example. 8. Explain Internal Rate of Return. 9. When do firm adopt Marginal Cost pricing?

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www.Vidyarthiplus.com 10. Mention any two advantages of cost plus pricing.

PART B — (5 × 16 = 80 Marks)

11. (a) (i) Explain the relationship of Managerial Economics with other disciplines. (4) (ii) Discuss in detail the Nature of Managerial Economics. (12) Or (b) (i) "Managerial Economics is Economics applied in Decision Making"– Discuss. (8) (ii) Explain the goals of the firm. (8)

12. (a) (i) Define law of demand and explain types of demand with diagram.(10) (ii) Why does the demand curve slopes downward? (6) Or (b) (i) What are the reasons for the exceptions of the Demand Curve? Explain. (8)

(ii) Describe the Elasticity of Supply. (8)

13. (a) (i) Write a short note on Isoquant and its types. (10) (ii) Elucidate the returns to scale. (6) Or (b) (i) Describe cost of production in the long run average cost curve. (8) (ii) What are the factors affecting production function? Discuss. (8) www.Vidyarthiplus.com

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14. (a) (i) Write a note on cost-oriented pricing. (10) (ii) Explain common pricing practices in Retail Trade. (6) Or (b) (i) Describe price Discriminations. (7) (ii) Explain the limitations of the Marginal cost pricing. (9)

15. (a) (i) Write briefly on the limitations of financial statements. (8) (ii) Give the meaning of Ratio analysis and its significance. (8) Or (b) (i) What are the steps involved in Net Present Value Method(NPV)? (8) (ii) Explain Pay Back method in detail. (8)

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