1. Explain the discounting principle. Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest.

2. With reference to the marketing approach of demand measurement explain any two important sources of data used in demand forecasting.

3. How are Isoquants different from Isocost? Illustrate using graphs.

4. “An analytical tool frequently employed by managerial economists is the break even chart, an important application of cost functions.” Discuss this statement giving examples from any firm.

5. Describe how oligopolistic competition exists in the real world giving examples from FMCG Companies.

6. Write short notes on the following:

(a) Product Differentiation

(b) Equi – Marginal Principle

(c) The Price Elasticity of Demand

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