MGT207 Business Statistics

Business Statistics TU Board 2079 question paper

19 questionsSit this paper (timed)

Tribhuvan University

Bachelor of Business Studies

Year 1 · TU Board 2079

Course Title: Business Statistics (MGT207)

Time: 3 Hrs

Group A

Brief Answer Questions: Attempt ALL questions.(10 × 2 = 20)

  1. 1.

    What are the characteristics of business economics?

    2
  2. 2.

    Consider the supply function Qs = a + bP and interpret the components.

    2
  3. 3.

    Write any four assumptions of cardinal approach.

    2
  4. 4.

    Why is LAC - U shaped?

    2
  5. 5.

    Prepare a list of characteristics of oligopoly.

    2
  6. 6.

    State the relationship between TR and price elasticity of demand.

    2
  7. 7.

    Write any four examples of explicit costs.

    2
  8. 8.

    Define value of marginal productivity of labour.

    2
  9. 9.

    What are the causes for the operation of the law of increasing returns?

    2
  10. 10.

    How is degree of economies of scope computed?

    2

Group B

Descriptive Answer Questions: Attempt any FIVE questions.(5 × 10 = 50)

  1. 11.

    Describe the nature of microeconomics.

    10
  2. 12.

    Explain the factors that cause shift in demand curve.

    10
  3. 13.

    How is the price determined under "joint profit maximization cartel". Explain.

    10
  4. 14.

    What is economic rent? How is it determined?

    10
  5. 15.

    Let, revenue function, TR = 100Q - Q^2, cost function, TC = 50 + 6Q^2. a) Compute TR, TC and profit (π) at the output range of 0 to 10 units. b) Graph TR, TC and π and explain profit maximization goal of the firm. [3+(3+4)]

    10
  6. 16.

    Consider the following cost schedule: Q:012345678TFC:100100100100100100100100100TVC:0101824325080124180TC:100110118124132150180224280 a) Graph TFC, TVC and TC and explain their behavior. b) Is the trend of TC or TVC is influenced by the law of variable proportions? Explain.

    10

Group C

Analytical Answer Questions: Attempt any TWO questions.(2 × 15 = 30)

  1. 17.

    Explain the price effect for normal substitutes. How can it be decomposed into income and substitution effects? Explain. [7+8]

    15
  2. 18.

    Describe the significance of production function in business decision - making. How do firms achieve optimal employment of two variable inputs? Explain. [5+10]

    15
  3. 19.

    Consider the following supply schedule: Points:ABCDEPrice (Rs):010203040Supply (Units):100200300400500 a. Compute the price elasticity of supply at movement from B to D and D to B by proportion method. [4] b. Compute the price elasticity of supply at midway between B and D and D and B by arc method. Why is arc method considered as more appropriate method than proportion method? [4+2] c. How do firms use price elasticity of demand in business decision making? Explain with suitable examples. [5]

    15

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