Classical

Managerial Economics - Managerial Economics Questions

46:  

Match the following :

List-I (Economist)

(A) Robinson

(B) Boulding

(C) A. Caincross

(D) Marshall

List-II (Statement)

1. The elasticity of demand at any price or at any output is the proportional change of amount purchased in response to a small change in price divided by the proportional change in price.

2. The elasticity of demand may be defined as the percentage change in quantity demanded which would result from one percent change in price.

3. The elasticity of demand for a commodity is the rate at which the quantity bought changes as the price changes.

4. The elasticity for demand in a market is great or small according as the amount demand increases much or little for a given fall in price, and diminishes much or little for a given rise in price.

5. Economics is what economists do.

A.

(A) (B) (C) (D)

1    4    3    2

B.

(A) (B) (C) (D)

3    1    4    2

C.

(A) (B) (C) (D)

1    2    3    4

D.

(A) (B) (C) (D)

1    3    4    2

 
 

Option: C

Explanation :


47:  

The fixed cost of production of the firm is Rs 20 crore and advertisement cost is Rs 4 crore. The firm has the contribution margin, (P-AVC) as Rs 100. In order to reach its target profit of Rs 6 crore, the firm will target an output of

A.

25,00,000 units

B.

30,00,000 units

C.

35,00,000 units

D.

40,00,000 units

 
 

Option: B

Explanation :


48:  

Demand Analysis includes :

A.

Demand Forecasting

B.

Demand Differentials

C.

Demand Determinations

D.

All of the above

 
 

Option: D

Explanation :


49:  

Value maximization theory fails to address the problem of

A.

self-serving management.

B.

risk.

C.

uncertainty.

D.

sluggish growth.

 
 

Option: A

Explanation :


50:  

The market demand function for a product is a statement of the relationship between the

A.

Quantity of the services

B.

Quantity of the product demanded and all the factors that affect this quantity

C.

Quantity of the product demanded and all the profit

D.

Product demand and cost.

 
 

Option: B

Explanation :




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