B.E./B.Tech. DEGREE EXAMINATION, APRIL/MAY 2010 Fifth Semester Information TechnologyMG 2452 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING(Regulation 2008)Time : Three hours Maximum : 100 Marks Answer ALL questions PART A (10 2 = 20 Marks)1. Scope of Managerial Economics: 2. What is meant by Micro economic analysis? 3. Define Demand. 4. Define Determinants of Demand: 5. What are actual costs and opportunity costs? 6. What are past costs and future costs? 7. What are objectives of business? 8. What are the two factors in pricing strategies?9. What is fixed assets? 10. What is balanced sheet?

PART B (5 16 = 80 Marks)

11. (a) (i) Explain the relationship of Managerial Economics with other disciplines. [Marks 4] (ii) Discuss in detail the Nature of Managerial Economics. [Marks 12] Or

(b) (i) "Managerial Economics is Economics applied in Decision Making" Discuss. [Marks 8] (ii) Explain the goals of the firm. [Marks 8]

12. (a) (i) Define law of demand and explain types of demand with diagram.[Marks10 ] (ii) Why does the demand curve slopes downward? [Marks 6] Or(b) (i) What are the reasons for the exceptions of the Demand Curve?Explain. [Marks 8] (ii) Describe the Elasticity of Supply. [Marks 8]13. (a) (i) Write briefly on the limitations of financial statements. [Marks 8] (ii) Give the meaning of Ratio analysis and its significance. [Marks 8] Or(b) (i) What are the steps involved in Net Present Value Method(NPV)? [Marks 8] (ii) Explain Pay Back method in detail. [Marks 8]

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

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