Assertion (A) : Low initial price regarded as the principal means for entering into mass market for some new products. Reasoning (R) : Firms generally enter into production of new products with excess capacity of the plant initially.

Assertion (A) : The equilibrium price is decided at the level where the quantity demanded equals the quantity supplied. Reasoning (R) : At this level excess of demand and excess of supply both remain zero.

Statement – II : Costs in the form of depreciation allowances and unpaid interest on the owner’s own funds are known as sunk costs.

Reason (R) : The international environment is more volatile and the domestic firm generally does not have full information about the environment.

List – I List – II a. Sales Revenue Maximization i. Williamson’s Model b. Maximization of a firm’s growth rate ii. Cyert-March Hypothesis c. Maximization of Managerial Utility function iii. Baumol’s Theory d. Satisficing behaviour model iv. Marri’s Theory