List-I List-II (a)    Income elasticity less than unity (i)Inferior goods (b) Cross elasticity less than unity (ii)Complementary goods (c) Cross elasticity less than zero (iii)Competitive goods (d) Income elasticity less than zero (iv)Superior goods

(i) Utility is measurable in terms of cardinal numbers. (ii) Constancy of the marginal utility of money. (iii) Utilities of different goods are interdependent. (iv) Gossen’s first law of consumption.

Assertion (A): U-shaped long-run average cost curve is based on the assumption that economies of scale prevails at small levels of production and diseconomies of scale prevails at larger level of production. Reason (R): Decreasing returns to scale arises primarily because as the scale of operation increases, it becomes even more difficult to manage the […]

List-I (Theories of Profit) List-II (Economists) a) Risk theory of profit i) Schumpter b) Innovation theory of profit ii) Walker c) Rent theory of profit iii) Hawley d) Dynamic theory of profit iv) Clark

List-I (Objectives of business firms) List-II (Hypothesis) a) Maximization of firm’s growth rate i) Baumol’s hypothesis b) Managerial utility function ii) Marris hypothesis c) Satisfying behaviour iii) William hypothesis d) Sales maximization iv) Cyert-March hypothesis