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MS-09
Q. Explain the objectives of a firm. How is profit maximization the
most important objective of a firm? Discuss.
Answer. In traditional economic
theory, it was assumed that the firm’s objective was to maximize the profits.
Whether it was a perfect competition, a monopoly, a monopolistic competition or
an oligopoly—in all the market structures—the firm’s sole objective was to
maximize the profits .......
Q. What are the marketing approaches to demand measurement? Explain how
Delphi Technique is different from Market Experiments Technique.
Answer. Different methods of
demand measurement are used to try to estimate what the future requirements for
a product might be so that it is possible to meet customer demand as closely as
possible. Demand Measurement, thus, helps in the inventory-holding decision
process to find answers to questions about what to stock, how much to stock and
what facilities are required. It is often said that 'all mistakes in
forecasting end up as an inventory problem......
Q.Differentiate between Economies of Scale and Economies of Scope. Give
examples.
Answer. When a company can
produce something more cheaply per unit by increasing quantities, we say it’s
creating economies of scale. Think of it like a bulk discount, but on a much
larger scale: when a company sells more of a product it’s able to charge a
lower price for it..... Economies of scale apply to a variety of organizational
and business situations and at various levels, such as a business or
manufacturing unit, plant or an entire company......
Q. Briefly explain the Profit Maximizing output in the short run
Answer. The goal of every
business is to achieve the maximum profit possible. This involves producing just the right amount of output
so that every unit produced will be profitable.....
Q. Determine the equilibrium price and equilibrium output of the firm
under perfect competition, in the following situation:
Aggregate Demand: Q = 50 – 1.0p
Aggregate Supply: Q = 20 + 2.0p
Answer. ......
Q. Discuss in detail the
Chronology of Indian Telecom deregulation from 1992 to 2003.
Answer. A chronological recording
of India's telecom reforms is invaluable.......
Q. Write short notes on the following:
(a) Cross Price Elasticity
(b) Total Product and Marginal Product
(c) Cartel Profit Maximization
Answer. Cross price elasticity of
demand is a measure of the responsiveness of the quantity demanded of a
particular good to a change in the price of another good......... The
cross-elasticity coefficient can be useful to determine the degree of complementarity
or substitutability across product lines. Suppose, for example, that the
cross-elasticity coefficient that measures the responsiveness of French fry
sales........
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