In case consumer’s equilibrium to be explained through an ordinal approach, when there are two commodities with their prices given and with limited income of the consumer, the following information is required: a. Price line/budget line b. Indifference map c. Point of tangency between IC and budget line d. Equality of the slopes of IC […]

Q = A [αK-β + (1 – α) L-β]-1/β  OR Q = A [αL-β + (1 – α) K-β]-1/β  Where, A > 0, 0 < α < 1, β > -1 Where, L = Labor, K = Capital and A, α and β are three parameters

Theory Propounder a) Profit as Rent of Ability i)F.B. Hawley b) Dynamic Theory of Profit ii)Joseph A Schumpeter c) Risk Theory of Profit iii)J. B. Clark d) Innovation Theory of Profit iv)F. A. Walker    

a. A simple monopoly firms always earns super normal profit b. Sweezy’s kinked demand curve model is the best known model explaining relatively more satisfactory behaviour of oligopoly firm for price rigidity c. A perfectly competitive firm is price – taker d. Firms under monopolistic competition earn only normal profits Choose the correct option from […]

Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacture’s products within a specified period Reason (R): The same product is priced differently at different times In the context of the two statements above related to pricing strategy, which one of the following option is correct?  

a. Product tailoring b. Public utility pricing c. Refusal pricing d. Monopoly pricing  

Assertion (A): There exists excess capacity of the production for the firms if these incur losses Reasoning (R): Their production level has to remain below their economic capacity level

a. Sustainability b. Complementarily c. Flexibility d. Specificity