Sem: October-2025 Maximum Marks: 50 Examination: End Exam Date: 05.10.2025 Duration: 2.5hrs
Programme code: 18 Programme: MBA for Working Executive	Class: FY	Semester: I- Batch-5- 2024-25
College: K. J. Somaiya Institute of Management	Name of the department/Section/Center:
Course Code: 317P18C105	Name of the Course: Managerial Economics
Instructions:

Question No.	Max. Marks
Recent flooding in India's Punjab and Himachal Pradesh regions severely disrupted vegetable production and logistics. Prices of vegetables like tomatoes, capsicum, and mint shot up—tomatoes rose from ₹30–40/kg to ₹70/kg; capsicum from ₹40 to ₹150/kg; mint from ₹30 to ₹120 per bunch, largely due to sharp falls in supply (Source: TOI) Illustrate (graphically) the shift in the supply curve for vegetables and explain the resultant change in equilibrium price and quantity. Discuss consumer behaviour and possible demand-side adjustments in response to these price spikes. If the government relaxes restrictions on transporting vegetables from other regions (e.g., Nashik), how might that affect the supply curve and prices?	(9 Marks)
2	During 2021–22, India faced a global semiconductor shortage affecting automobile production across the country. a) Explain the impact on car prices and waiting periods using supply-demand analysis. b) Suggest long-term supply-side measures that could reduce such vulnerabilities.	(6 Marks)
3	An auto-parts supplier in Pune notices that when it increases both capital investment and skilled labour, output initially grows faster than inputs but later begins to grow more slowly. Analyse this pattern in terms of returns to scale and law of variable proportions. Recommend two operational decisions the firm should consider.	(6 Marks)
4	A large IT services firm In Bangalore expands its server capacity and also hires additional software engineers. Explain how its production function captures the relationship between these two inputs and overall service output. Suggest how the firm can measure marginal product of each input to optimise staffing and infrastructure costs.	(6 Marks)
5	A cement manufacturing plant notices that adding more contract labour initially raises output but later the productivity per worker starts to decline. a) Identify the stage of production described. b) Give two managerial actions to overcome this problem.	(6 Marks)
6	With rising fuel prices, Indian airlines face higher average variable costs. a) Analyse how this affects their short-run supply decisions. b) Suggest two cost-control strategies apart from ticket price hikes. c) Explain how long-run cost planning (e.g., fleet modernization) can mitigate such shocks.	(6 Marks)
7	An agricultural wholesale market in Madhya Pradesh sells wheat where hundreds of small farmers bring almost identical grain. Identify the market structure and explain how individual sellers determine the price.	(3 marks )
8	The Indian Railways historically operated as the sole provider of long-distance passenger train services. Explain two reasons why it represents a monopoly and one challenge it faces in maintaining market power.	(3 marks )
9	Quick-service restaurant chains (e.g., Domino’s, Pizza Hut, local brands) compete for urban consumers. Explain what kind of market structure is this and how product differentiation influences pricing in such set up.	(3 marks )
10	India’s telecom sector is dominated by a few large players—Jio, Airtel, and Vodafone-Idea. Identify the market structure and discuss how strategic interdependence among these firms affects pricing and promotional decisions.	(3 marks )