NMIMS SOLVED ASSIGNMENT BUSINESS ECONOMICS DEC 2019

BUSINESS ECONOMICS

1. Calculate the following:

Quantity

Total Fixed Cost

Total Cost

Total Cost

Average Cost

Marginal Cost

• 25
• 10
• 18
• 26
• 10
• 20
• 27
• 10
• 21

2. &ldquoDeterminant of demand are the important factor which influences the decision of the consumers to purchase commodity or a service&rdquo With respect to the above statement discuss any 5 determinants of the individual demand.

3. a. Suppose the monthly income of an individual increases from Rs. 10,000 to Rs. 15,000 which increases his demand for clothes from 20 units to 25 units. Calculate the income elasticity of demand and interpret the result.

b. Quantity demanded for tea has increased from 100 to 160 units with an increase in the price of the coffee powder from Rs. 40 to Rs. 50. Calculate the cross elasticity of demand between tea and coffee and explain the relationship between the goods.

Business Economics

1. What is Demand forecasting Explain different qualitative methods of demand forecasting. State which of the methods described is most suitable for forecasting the demand for &ldquonewspaper&rdquo and why

2. Complete the hypothetical table below and explain in brief, the law of proportions.

Quantity

Total Product

Average Product

Marginal product

• 1
• 10
• 2
• 30
• 3
• 48
• 4
• 56
• 5
• 56
• 6
• 52

3. a. Explain the types of elasticity of demand. Calculate elasticity of demand for the following data.

Price of Apple Rs.

Quantity demanded KGs

• 20
• 100
• 21
• 96

3. b. Distinguish between the features of perfect competition and monopolistic competition. Give real world examples of each of these types of markets.