11. Which of the following are the drawbacks of "Marginal cost pricing policy"?
i] Frequent changes in price
ii] Practical difficulties arise in computation of marginal cost
iii] Profit/ unit
iv] It causes problems in credit sales
a. Only i
b. i, ii and iii
c. i, ii and iv
d. All the above
12. Total revenue - Explicit costs = _________, as per economists.
a. Profit
b. Investment
c. Implicit cost
d. None of the above
13. Variable costs vary with ______
a. Size
b. Scale
c. Input
d. Output
14. Study of income elasticity of demand is useful in
i] Economic planning
ii] Marginal planning
iii] Demand forecasting
iv] Contribution analysis
a. Only i and ii
b. Only i and iii
c. All i, ii and iii
d. Only iv
15. Managerial economics involves forward planning by management. Who said this?
a. Prof. Hague
b. Alfred Marshall
c. Spencer Sieglemen
d. Prof. Jon Darwin
i] Frequent changes in price
ii] Practical difficulties arise in computation of marginal cost
iii] Profit/ unit
iv] It causes problems in credit sales
a. Only i
b. i, ii and iii
c. i, ii and iv
d. All the above
Answer: c. i, ii and iv
12. Total revenue - Explicit costs = _________, as per economists.
a. Profit
b. Investment
c. Implicit cost
d. None of the above
Answer: a. Profit
13. Variable costs vary with ______
a. Size
b. Scale
c. Input
d. Output
Answer: d. Output
14. Study of income elasticity of demand is useful in
i] Economic planning
ii] Marginal planning
iii] Demand forecasting
iv] Contribution analysis
a. Only i and ii
b. Only i and iii
c. All i, ii and iii
d. Only iv
Answer: b. Only i and iii
15. Managerial economics involves forward planning by management. Who said this?
a. Prof. Hague
b. Alfred Marshall
c. Spencer Sieglemen
d. Prof. Jon Darwin
Answer: c. Spencer Sieglemen
