Managerial Economics - Study Mode

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[#126] The LAC curve is tangent to the lowest point on the SAC curves when the LAC curve is

(A) Rising

(B) Falling

(C) At its minimum

(D) None of these

Correct Answer

(C) At its minimum

[#127] Under price discrimination, price will be higher in the market where demand is

(A) Highly elastic

(B) Unitary elastic

(C) Less elastic

(D) None of the above

Correct Answer

(C) Less elastic

[#128] Direct regulation of business has the poten tial to yield economic benefits to society when

(A) diseconomies of scale exist

(B) barriers to entry are absent

(C) there are no good substitutes for a product

(D) many firms serve a given market

Correct Answer

(C) there are no good substitutes for a product

[#129] Match the following: a. For a given 10 percent change in price, demand changes by zero percent 1. e > 1 b. For a given 10 percent change in price, demand changes by 5 percent 2. e = 1 c. For a given 10 percent change in price, demand changes by 10 percent 3. e < 1 d. For a given 10 percent change in price, demand changes by 20 percent 4. e = 0

(A) a-1, b-2, c-3, d-4

(B) a-4, b-3, c-2, d-1

(C) a-3, b-1, c-2, d-4

(D) a-2, b-3, c-1, d-4

Correct Answer

(B) a-4, b-3, c-2, d-1

[#130] Match the following: List-I (Items) List-II (Applications) a. Additional Value 1. $$frac{{{ ext{Proposed Expenditure}}}}{{{ ext{Contribution per units}}}}$$ b. MOS 2. Total sales - B.E. sales c. MOS (in percent) 3. $${ ext{Profit}} div frac{{{ ext{Contribution}}}}{{{ ext{Sales}}}}$$ d. Sales (in Rs.) 4. $$frac{{{ ext{FC}} + { ext{Profit}}}}{{1 - frac{{{ ext{VC}}}}{{{ ext{Sales}}}}}}$$

(A) a-3, b-1, c-4, d-2

(B) a-3, b-4, c-2, d-1

(C) a-3, b-1, c-2, d-4

(D) a-1, b-2, c-3, d-4

Correct Answer

(C) a-3, b-1, c-2, d-4