A cost that has already been committed and cannot be recovered known as:
1.Sunk cost
2.Total cost
3.Full cost
4.Variable cost
A positive income elasticity may be
1.Unit income elasticity
2.Income elasticity greater than unity
3.Income elasticity less than unity
4.Any of the above
Basic assumptions of law of demand does not include
1.There is no change in consumers' taste and preference
2.Income should remain constant.
3.Prices of other goods should change.
4.There should be no substitute for the commodity
Cinema Theater, telephone bills etc.. are following
1.Full cost pricing
2.Marginal cost pricing
3.Differential pricing
4.Mark up pricing
Determinants of demand includes
1.Price of a commodity
2.Nature of commodity
3.Income and wealth of consumer
4.All the above.
Exceptional Demand Curve (Perverse demand curve)
1.Moving upward from left to right
2.Moving upward from right to left
3.Moving horizontally
4.Moving vertically
Growth curve approach is used for forecasting demand of ______________ products
1.New
2.Old
3.Existing
4.Both old and existing.
If the commodities are complimentary, cross elasticity will be
1.Negative
2.Positive
3.Zero
4.Any of the above
In a perfect market both buyers and sellers are
1.price maker
2.price giver
3.price taker
4.All the above.
In business cycle concept, the period (approximately) of "Kit chin cycle" is of:
1.5 years
2.10 months
3.2 years
4.4 months
In business cycle concept, the period of "long wave" is of;
1.25 years
2.50 years
3.100 years
4.200 years
In case of ______________ quantity demanded changes less than proportionate to changes in price
1.Perfectly elastic demand
2.Perfectly inelastic demand
3.Relative elastic demand
4.Relative inelastic demand
In the above function, the letter T stands for
1.Target price
2.Total supply
3.Total consumption
4.Taste and preference of consumers
in the case of perfect inelasticity, the demand curve is
1.Vertical
2.Horizontal
3.Flat
4.Steep
In the case of ______________ a small change in price leads to very big change in quantity demanded
1.Perfectly elastic demand
2.Perfectly inelastic demand
3.Relative elastic demand
4.Unit elastic demand
In the oligopoly market there are
1.large no. of firms
2.a few firms
3.a single firm
4.an infinite no. of firms
Marginal revenue is ______________ at the quantity that generate maximum total revenue and negative beyond that point.
1.Zero
2.One
3.+1
4.−1
Price discrimination is also called as
1.Discriminatory pricing
2.Differential pricing
3.Average cost pricing
4.a & b above
Pricing is done on the basis of managerial decisions, not on the basis of cost, demand etc...
1.Managerial pricing
2.Administered pricing
3.Full cost pricing
4.Competitive pricing
Purposes of long term Demand forecasting doesn’t includes;
1.Planning of a new unit or expansion of existing unit.
2.Planning long term financial requirements.
3.Planning of manpower requirements.
4.Deciding suitable price policy
Purposes of long term Demand forecasting includes
1.Making a suitable production policy.
2.To reduce the cost of purchasing raw materials and to control inventory.
3.Deciding suitable price policy
4.Planning of a new unit or expansion of existing unit
So long as Average Revenue is falling, Marginal Revenue will be ______________ Average Revenue
1.Less than
2.More than
3.Equal to
4.None of these
Target pricing is also called as
1.Cost plus pricing
2.Rate of return pricing
3.Mark up pricing
4.None of these
The change in demand due to change in price only, where other factors remaining constant, it is called ________
1.Shift in demand
2.Extension of demand
3.Contraction of demand
4.Both extension and contraction
The claim that, other things equal, the quantity supplied of a goods rises when the price of goods raises known as:
1.Law of economics
2.Law of supply
3.Law of demand
4.All of these
The competitive firm’s long run supply curve is the portion of it’s ______________ curve lies above average total cost.
1.Marginal cost
2.Revenue cost
3.Fixed cost
4.All of these
The concept of Elasticity of Demand was introduced by
1.Alfred Marshall
2.Lionel Robbins
3.Adam smith
4.J M Keynes
The concept of monopsony was invented by:
1.Marshall
2.AP. Learner
3.Chamberlin
4.Mrs. J. Robinson
The condition for the long run equilibrium of a perfectly competitive firm
1.Price=MC=AC
2.Price=TC
3.MC=AVC
4.MC=MR
The demand curve of a firm in the case of perfect competition is:
1.Parallel to output axis
2.Increasing with the output axis
3.Decreasing with the output axis
4.Complete
The factors used in the production
1.Land and labor
2.capital & entrepreneurship
3.both a&b
4.only capital
The law of diminishing returns applies more to
1.agriculture
2.industry
3.services
4.commerce
The monopoly can be controlled by:
1.Social boycott
2.Antimonopoly legislation
3.Public ownership
4.All of these
The no. of firms under oligopoly is
1.1
2.2
3.many
4.Few
The opportunity cost of a given activity is
1.the value of next best activity
2.the value of material used
3.the cost of input used
4.None of these
The pricing of cup of tea or coffee, is an example of
1.Mark up pricing
2.Marginal cost pricing
3.Conventional pricing
4.Cost plus pricing
The properties of indifference curves are:
1.Indifference curve slops downwards from left to right
2.Convex to the point of origin
3.Two indifference curve never cut each other
4.All of these
When the quantity demanded falls due to a rise in price, it is called
1.Extension
2.Upward shift
3.Downward shift
4.Contraction
Where Marginal revenue is negative, TR will be _____
1.Rising
2.Falling
3.Zero
4.One
Which factors is/are influencing price policy?
1.Cost of product
2.Time factor
3.Government policy
4.All of these
Which is the feature of perfect competition?
1.Large number of buyers and sellers
2.Freedom of entry and exit
3.Normal profit in the long run
4.All of these
Which is/are the salient features of monopolistic competition?
1.Large number of sellers
2.Normal profit
3.Free entry and exit of firms in industry
4.All of these
Which of the following method of pricing is popular in wholesale and retail trades
1.skimming
2.penetrating
3.full cost pricing
4.target pricing
______ method measures elasticity between two points
1.Proportional or Percentage Method
2.Outlay Method
3.Geometric method
4.Arc Method
_______ in economics means demand backed up by enough money to pay for the goods demanded"
1.Utility
2.Consumption
3.Supply
4.Demand
_______ is the method of leadership pricing
1.Going rate pricing
2.Follow up pricing
3.Barometric pricing
4.Parity pricing
_________ is an "objective assessment of the future course of demand"
1.Demand Estimation
2.Demand analysis
3.Demand function
4.Demand forecasting
_________ provide guidelines to carry out ______
1.Pricing strategies, pricing policies
2.Pricing policies, pricing strategies
3.Pricing rules, pricing policies
4.Pricing rules, pricing strategies
__________ means relationship between demand and its various determinants expressed mathematically
1.Demand extension
2.Demand contraction
3.Demand analysis
4.Demand function
__________= R2-R1/Q2-Q1
1.Average revenue
2.Total revenue
3.Marginal revenue
4.Incremental revenue