Managerial Economics - Study Mode

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[#351] A loss bearing firm will continue to produce in the short run so long as the price at least covers

(A) Average variable costs

(B) Marginal costs

(C) AVC + AFC

(D) Average fixed costs

Correct Answer

(A) Average variable costs

[#352] Match the following: List-I (Items of BEP) List-II (Formula) a. BEP 1. $$frac{{{ ext{FC}}}}{{{ ext{P/V Ratio}}}}$$ b. Contribution 2. Sales × P/V Ratio c. Margin of safety 3. $$frac{{{ ext{Profit}}}}{{{ ext{P/V Ratio}}}}$$ d. Calculation of changes in BEP if non-variable costs are increased/decreased 4. $$frac{{{ ext{Change in Non-variable Costs}}}}{{{ ext{P/V Ratio}}}}$$

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

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

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

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

Correct Answer

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

[#353] "We are much better off when drawing purely imaginary indifference curves than we are when speaking of purely imaginary utility functions". This is remarked by

(A) J. R. Hicks

(B) Allen

(C) Schumpeter

(D) Paul A. Samuelson

Correct Answer

(C) Schumpeter

[#354] Increasing unemployment and inflation is a situation of`

(A) hyperinflation

(B) galloping inflation

(C) stagflation

(D) reflation

Correct Answer

(C) stagflation

[#355] In finding equilibrium position of a profit maximising firm, which technique is most convenient?

(A) Demand and supply technique

(B) Marginal revenue and marginal cost technique

(C) Total revenue and total cost technique

(D) None of these

Correct Answer

(B) Marginal revenue and marginal cost technique