Managerial Economics End Term: 10 May 2026, Set 1 (January 2026 term)

Based on the above data, answer the given subquestions.

Calculate the output of paper if it is produced under competitive conditions and no attempt is made to monitor or regulate the dumping of effluent. Q = ______

Based on the above data, answer the given subquestions.

Calculate the Price of paper if it is produced under competitive conditions and no attempt is made to monitor or regulate the dumping of effluent. P = ________

Based on the above data, answer the given subquestions.

Determine the socially efficient price of paper. P = ____________

Based on the above data, answer the given subquestions.

Determine the socially efficient quantity of paper. Q = __________

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Based on the above data, answer the given subquestions.

Expected value of first product is __________(in $)
NOTE: Enter the exact answer without any extra space in the beginning or at the end. Answers Case Sensitive : No

Based on the above data, answer the given subquestions.

Inscript Expected value of second product is __________ (in $)
NOTE: Enter the exact answer without any extra space in the beginning or at the end. Answers Case Sensitive : No

Based on the above data, answer the given subquestions.

Choose the correct alternative(s)

Based on the above data, answer the given subquestions.

A risk-loving decision maker has the utility function U(I) = 25I2 where I denotes the payoff of the product.
Choose the correct alternative(s) for this risk-loving decision maker

India currently imports all of its palm oil. The annual demand for palm oil by Indian consumers is given by the demand curve Q=2000-4P, where Q is quantity of palm oil in thousand litres and P is market price in INR per litre. World producers can harvest and ship palm oil to Indian distributors at a constant marginal cost (=average cost) of INR 50 and Indian distributors can distribute it at a cost of INR 10 per litre. Consider market for palm oil to be competitive.
Indian government is considering a tariff on palm oil import of INR 10 per litre.
Based on the above data, answer the given subquestions.

If there is no tariff, what is the quantity demanded (in thousand litres) ___________

India currently imports all of its palm oil. The annual demand for palm oil by Indian consumers is given by the demand curve Q=2000-4P, where Q is quantity of palm oil in thousand litres and P is market price in INR per litre. World producers can harvest and ship palm oil to Indian distributors at a constant marginal cost (=average cost) of INR 50 and Indian distributors can distribute it at a cost of INR 10 per litre. Consider market for palm oil to be competitive.
Indian government is considering a tariff on palm oil import of INR 10 per litre.
Based on the above data, answer the given subquestions.

If the tariff is imposed, how much a consumer will pay for a litre of palm oil _____________

India currently imports all of its palm oil. The annual demand for palm oil by Indian consumers is given by the demand curve Q=2000-4P, where Q is quantity of palm oil in thousand litres and P is market price in INR per litre. World producers can harvest and ship palm oil to Indian distributors at a constant marginal cost (=average cost) of INR 50 and Indian distributors can distribute it at a cost of INR 10 per litre. Consider market for palm oil to be competitive.
Indian government is considering a tariff on palm oil import of INR 10 per litre.
Based on the above data, answer the given subquestions.

What is the new quantity demanded now (in thousand litres)? ___________

India currently imports all of its palm oil. The annual demand for palm oil by Indian consumers is given by the demand curve Q=2000-4P, where Q is quantity of palm oil in thousand litres and P is market price in INR per litre. World producers can harvest and ship palm oil to Indian distributors at a constant marginal cost (=average cost) of INR 50 and Indian distributors can distribute it at a cost of INR 10 per litre. Consider market for palm oil to be competitive.
Indian government is considering a tariff on palm oil import of INR 10 per litre.
Based on the above data, answer the given subquestions.

What will be the lost consumer surplus due to the imposed tariff (in thousand INR) ____________

India currently imports all of its palm oil. The annual demand for palm oil by Indian consumers is given by the demand curve Q=2000-4P, where Q is quantity of palm oil in thousand litres and P is market price in INR per litre. World producers can harvest and ship palm oil to Indian distributors at a constant marginal cost (=average cost) of INR 50 and Indian distributors can distribute it at a cost of INR 10 per litre. Consider market for palm oil to be competitive.
Indian government is considering a tariff on palm oil import of INR 10 per litre.
Based on the above data, answer the given subquestions.

Tax revenue for the government will be (in thousand INR) ________________

India currently imports all of its palm oil. The annual demand for palm oil by Indian consumers is given by the demand curve Q=2000-4P, where Q is quantity of palm oil in thousand litres and P is market price in INR per litre. World producers can harvest and ship palm oil to Indian distributors at a constant marginal cost (=average cost) of INR 50 and Indian distributors can distribute it at a cost of INR 10 per litre. Consider market for palm oil to be competitive.
Indian government is considering a tariff on palm oil import of INR 10 per litre.
Based on the above data, answer the given subquestions.

Tariff results in

A monopolist faces the demand curve P = 48 - 6Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $12 per unit.
Based on the above data, answer the given subquestions.

What is the monopolist’s profit-maximizing price and quantity? P*= _________

A monopolist faces the demand curve P = 48 - 6Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $12 per unit.
Based on the above data, answer the given subquestions.

What is the monopolist’s profit-maximizing price and quantity? Q*= ________

A monopolist faces the demand curve P = 48 - 6Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $12 per unit.
Based on the above data, answer the given subquestions.

The resulting profit to the monopolist will be π = ______________

A monopolist faces the demand curve P = 48 - 6Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $12 per unit.
Based on the above data, answer the given subquestions.

What is firm’s degree of monopoly power using the Lerner index ___________

Mohan quits his IT job, where he was earning a salary of ₹700,000 per year, to start his own restaurant business in a building that he owns and was previously renting out for ₹290,000 per year. In his first year of business, he has the following expenses: salary paid to himself, ₹500,000; rent, ₹0; other expenses, ₹340,000.
Based on the above data, answer the given subquestions.

The accounting cost associated with Mohan’s restaurant business is ____________

Mohan quits his IT job, where he was earning a salary of ₹700,000 per year, to start his own restaurant business in a building that he owns and was previously renting out for ₹290,000 per year. In his first year of business, he has the following expenses: salary paid to himself, ₹500,000; rent, ₹0; other expenses, ₹340,000.
Based on the above data, answer the given subquestions.

The economic cost associated with Mohan’s restaurant business is ____________

There are 40 low-risk people and 60 high-risk people. A low-risk person has an average of $1500 in medical expenses each year and is willing to pay $1800 for medical insurance (this person is risk-averse). A high-risk person has an average of $2200 in medical expenses each year and is willing to pay $2600 for medical insurance. Insurance companies are unable to differentiate who is high-risk and who is low-risk.
Based on the above data, answer the given subquestions.

If the insurance provider offered medical insurance at a price of $2000

There are 40 low-risk people and 60 high-risk people. A low-risk person has an average of $1500 in medical expenses each year and is willing to pay $1800 for medical insurance (this person is risk-averse). A high-risk person has an average of $2200 in medical expenses each year and is willing to pay $2600 for medical insurance. Insurance companies are unable to differentiate who is high-risk and who is low-risk.
Based on the above data, answer the given subquestions.

If the insurance company offered medical insurance at a price of $2400

The production function for a product is given by q = 450KL. If the price of capital is INR 30 per day and the price of labour is INR 150 per day.
Based on the above data, answer the given subquestions.

What is the cost minimizing quantity of labour and capital respectively for producing 9000 units of output? L* =________

The production function for a product is given by q = 450KL. If the price of capital is INR 30 per day and the price of labour is INR 150 per day.
Based on the above data, answer the given subquestions.

What is the cost minimizing quantity of labour and capital respectively for producing 9000 units of output? K* = _________

The production function for a product is given by q = 450KL. If the price of capital is INR 30 per day and the price of labour is INR 150 per day.
Based on the above data, answer the given subquestions.

What is the minimum cost of producing 9000 units of output in INR?

Based on the above data, answer the given subquestions.

Find the optimal bundle of goods 1 and 2 for this consumer. The optimal bundle will consist of X1= _________

Based on the above data, answer the given subquestions.

Find the optimal bundle of goods 1 and 2 for this consumer. The optimal bundle will consist of X2=__________