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
List – I List – II i. Competitive Parity a. Variations in Advertising ii. Promotional Elasticity of Market b. Level advertising iii. Optimal promotional mix c. Advertising expenditure decision iv. Contra-cycle advertising d. Marginal equivalency of media outlay
List – I List – II i. Cost function a. Kinked demand ii. Supply function b. Isoquants iii. Production function c. Engineering method iv. Oligopoly d. Factor prices
List – I List – II i. Loss Leader a. Locational price differentials ii. Unchanged Pricing b. Products with high initial demands iii. Basing Point Pricing c. Product line pricing iv. Skimming Pricing d. Oligopoly pricing
Column A Column B a. Maximization of society’s welfare even when individuals behave selfishly to further their own economic status. i. Equilibrium b. State of balance from which there is no tendency to change ii. Non-Satiation c. Best possible state within a given set of constraints iii. The invisible hand […]
Assertion (A): The quantity of a product demanded invariably changes inversely to changes in its price. Reason (R): The price effect is the net result of the positive substitution effect and negative income effect
Statement II: The slope of the budget line is ratio of the prices of two goods and is the Marginal Rate of Substitution in exchange (MRSe)