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Managerial Economics End Term: 10 May 2026, Set 1-2 (January 2026 term)

Question 1

+1.5 marksNumerical answer

The market for paper in southern region in the India is characterized by the following demand and supply curves: QD = 160,000−2000P and QS = 40,000+2000P, where QD is the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by paper mills. As a result, dumping is widespread. The Marginal External Cost (MEC) associated with the production of paper is given by the curve MEC = 0.0006QS.
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 = __________

Question 2

+1.5 marksNumerical answer

The market for paper in southern region in the India is characterized by the following demand and supply curves: QD = 160,000−2000P and QS = 40,000+2000P, where QD is the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by paper mills. As a result, dumping is widespread. The Marginal External Cost (MEC) associated with the production of paper is given by the curve MEC = 0.0006QS.
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 = ___________

Question 3

+1.5 marksNumerical answer

The market for paper in southern region in the India is characterized by the following demand and supply curves: QD = 160,000−2000P and QS = 40,000+2000P, where QD is the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by paper mills. As a result, dumping is widespread. The Marginal External Cost (MEC) associated with the production of paper is given by the curve MEC = 0.0006QS.
Based on the above data, answer the given subquestions.

Determine the socially efficient price of the paper. P = ________

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More on the Managerial Economics End Term 10 May 2026 Set 1-2 paper

The IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 10 May 2026, in the January 2026 term, set 1-2: 36 questions for 45 marks in 180 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.

FeatureManagerial Economics End Term 10 May 2026 Set 1-2 at a glance
TermJanuary 2026 term
SubjectManagerial Economics
Course codeBSMS3033
Questions36
Marks45
Duration180 min
Numerical24
MCQ8
Written2
MSQ2
Official paperManagerial Economics 06 May 26
Negative markingNo negative marking.
Updated

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