Manag., December-2019 – Q1
- A
What to products, how to produce, how much to produce, how to determine the price of a product
- B
What to produce, how much to produce, how to produce, how to determine price of the product
- C
How much to produce, what to produce, how to produce, how to determine the price of the product
- D
What to produce, how much to produce, how to determine the price of the product, how to produce
- Option : A
- Explanation : Microeconomics Applied to Operational
Issues
Operational issues are of internal nature.
Internal issues include all those problems
which arise within the business organization
and fall within the purview and control of
the management. Some of the basic internal
issues are:
(i) choice of business and the nature of product, i.e., what to produce;
(ii) choice of size of the firm, i.e., how much to produce;
(iii) choice of technology, i.e., choosing the factor-combination;
(iv) choice of price, i.e., how to price the commodity;
(v) how to promote sales;
(vi) how to face price competition;
(vii) how to decide on new investments;
(viii) how to manage profit and capital;
(ix) how to manage an inventory, i.e., stock of both finished goods and raw materials.
These problems may also figure in forward planning. Microeconomics deals with such questions confronted by managers of business enterprises.
