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Management Programme
ASSIGNMENT
SECOND
SEMESTER
201
6
MS
-
09
:
Managerial Economics
School of Management Studies
INDIRA GANDHI NATIONAL OPEN UNIVERSITY
MAIDAN GARHI, NEW DELHI
–
110 068
M
S
-
0
9
ASSIGNMENT
Course Code 
:
MS
-
9
Course Title
:           
Managerial Economics
Assignment Code
: 
MS
-
9/TMA/SEM
-
II/201
6
Coverage
:
All Blocks
Note:
Attempt  all  the
questions  and  submit  this  assignment  on  or  before
31
st
October
,  201
6
to
the coordinator of your study centr
e
.
1.
Describe  Incremental  Cost.  Differentiate  between  Incremental  Cost  and  Equi
-
Marginal
Principle.  Explain  how  does  consumer  maximize  utility  with  the  help  of  Equi
-
Marginal
Principle?
2.
A firm’s demand function
is given as P=32
-
6Q and the average cost function as AC=Q
2
–
7.5Q+50+2/Q. Calculate the level of output Q which:
-
a)
maximizes total revenue
b)
maximizes profits
3.    Discuss  Long
-
Run  Cost  Functions.  Why  long  run  cost  curve  is  called  a  planning  curve
and explai
n how does it help in future decision making process?
4. Why is there a kink in the market demand curve of oligopolists? Explain price rigidity of
the Kinked Demand Curve.
5.  Briefly  describe  the  characteristics  of  perfect  competition,  monopoly,  monopolist
ic
competition,  and  oligopoly  markets.    Identify  any  four  products  one  each  from  these
markets.
6. Write short notes on the following:
-
a)  Direct and Indirect Costs
b) Price Leadership
c) Peak Load Pricing