51. For the following two statements of Assertion (A) and Reason (R) suggest the correct option.
Assertion (A) Low initial price regarded as the principal means for entering into mass market for some new products.
Reason (R) Firms generally enter into production of new products with excess capacity of the plant initially.
Assertion (A) Low initial price regarded as the principal means for entering into mass market for some new products.
Reason (R) Firms generally enter into production of new products with excess capacity of the plant initially.
52. Match the following:
List-I (Subject of Managerial Economics)
List-II (Example)
a. Business Environment
1. Govt. Policies
b. Capital Management
2. Cost of Capital
c. Profit Management
3. Profit Planning
d. Cost Analysis
4. Cost Concept
5. Price System
| List-I (Subject of Managerial Economics) | List-II (Example) |
| a. Business Environment | 1. Govt. Policies |
| b. Capital Management | 2. Cost of Capital |
| c. Profit Management | 3. Profit Planning |
| d. Cost Analysis | 4. Cost Concept |
| 5. Price System |
53. The degree of monopoly power can be measured by the formula
54. Price discrimination is possible when
55. The LAC curve is tangent to the lowest point on the SAC curves when the LAC curve is
56. Under price discrimination, price will be higher in the market where demand is
57. Direct regulation of business has the poten tial to yield economic benefits to society when
58. 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. 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 |
59. Match the following:
List-I (Items)
List-II (Applications)
a. Additional Value
1. $$\frac{{{\text{Proposed Expenditure}}}}{{{\text{Contribution per units}}}}$$
b. MOS
2. Total sales - B.E. sales
c. MOS (in percent)
3. $${\text{Profit}} \div \frac{{{\text{Contribution}}}}{{{\text{Sales}}}}$$
d. Sales (in Rs.)
4. $$\frac{{{\text{FC}} + {\text{Profit}}}}{{1 - \frac{{{\text{VC}}}}{{{\text{Sales}}}}}}$$
| List-I (Items) | List-II (Applications) |
| a. Additional Value | 1. $$\frac{{{\text{Proposed Expenditure}}}}{{{\text{Contribution per units}}}}$$ |
| b. MOS | 2. Total sales - B.E. sales |
| c. MOS (in percent) | 3. $${\text{Profit}} \div \frac{{{\text{Contribution}}}}{{{\text{Sales}}}}$$ |
| d. Sales (in Rs.) | 4. $$\frac{{{\text{FC}} + {\text{Profit}}}}{{1 - \frac{{{\text{VC}}}}{{{\text{Sales}}}}}}$$ |
60. Increasing returns imply
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