Assertion (A): Industrial liberalization became an imperative condition for the growth of forces of competition leading to high efficiency and productivity in Indian industries. Reasoning (R): Industrial development and curbing of poverty is only possible through government intervention.  

Demand function: Q = 100 – 0.2P                                               Price function: P = 500 – 5Q Cost function:          TC = 50+20 Q + Q² Where Q = Total quantity of the product in physical units P = Price of the product per unit TC = Total cost What is the profit maximising output of the pure […]

TC = 200+5Q+2Q² Where TC = Total Cost    Q = Physical units of the product of the firm    What would be the level of the optimum output?

List-I List-II (a)Non-price quantity relationships of demand (i)Extension and contraction of demand (b) Income effect of a price rise greater than its substitution effect. (ii)Ordinal utility approach (c) Transitivity and consistency of choices (iii)Increase and decrease in demand (d) Price-quantity relationships of demand (iv) Giffen goods

(a) Complementarity     (b) Substitutability      (c) Product elasticity        (d) Specificity  

Assertion (A): Gossen’s first law of consumption is invariably applicable in case of individuals’ consumption behaviour. Reasoning (R): It serves as an important determinant of demand for the goods and services in the market     

List-I List-II (a)Postage stamp pricing (i)Equality of marginal and average cost (b) Loss leader (ii) Constant average and marginal cost (c) Economic capacity (iii)Product line pricing (d) Reserve capacity (iv) Differential pricing

I. Public utility pricing II. Complementary goods pricing III. Spare parts pricing                                                     IV. Load factor pricing