Assertion (A) Total utility will be maximum, when marginal utility to price of respective products are equal.Reason (R) Deviation from this situation leads to reduction in maximum utility.

Assertion (A) Total utility will be maximum, when marginal utility to price of respective products are equal.<br>Reason (R) Deviation from this situation leads to reduction in maximum utility.

Which of the following are not the assumptions related to the theory of consumer behaviour as per the cardinal utility approach?
1. Rational consumer
2. Unlimited money income
3. Utility cardinally measurable
4. Diminishing marginal utility of money
5. Constant marginal utility of commodities
6. Maximisation of satisfaction
7. Utility is additive

A

1, 3, 5 and 7

B

2, 4 and 5

C

1, 3, 4 and 5

D

Both 6 and 7

For the following statement of Assertion (A) and Reasoning (R) select the correct answer:
Assertion (A): Price reduction normally leads to an increase in the demand for a commodity.
Reason (R): Price reduction leads to the entry of new buyers of the commodity in the market.

A

(A) is correct but (R) is not correct

B

(A) is not correct but (R) is correct

C

Both (A) and (R) are correct and offers a full explanation of (A)

D

Both (A) and (R) are correct but (R) does not offer a full explanation of (A)

An assertion and a reason are given below. Assertion: The phenomenon of nuclear fission generates great energy. Reason: The process in which a nucleus is broken into two parts is called nuclear fission. Choose the answer. A. Both Assertion and Reason are true and Reason is the correct explanation of Assertion. B. Both Assertion and Reason are true but Reason is not the correct explanation of Assertion. C. Both Assertion and Reason are false. D. Assertion is true but Reason is false.

A

B

D

C

B

D

C

From the following two statements of Assertion (A) and Reason (R), indicate the correct answer.
Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R) If the marginal cost is less than the purchase price it should be purchased rather than manufactured.

A

Both (A) and (R) are correct

B

(A) is correct, but (R) is not correct

C

(A) is not correct, but (R) is correct

D

Both (A) and (R) are incorrect

From the following two statements of Assertion (A) and Reason (R). Indicate the correct option.
Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

A

Both (A) and (R) are correct

B

(A) is correct, but (R) is not correct

C

(A) is not correct, but (R) is correct

D

Both (A) and (R) are incorrect

When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements is/are false ? (a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant. (b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour. (c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

A

(a) and (b) statements

B

Only (c) statement

C

Only (a) statement

D

Only (b) statement

When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

A

Both 1 and 2

B

Only 3

C

Only 1

D

Only 2

Which two of the following statements are true? a) The sum of the deviations from mean (ignoring algebraic signs) is greater than the sum of the deviations from median (ignoring algebraic signs) b) Standard deviation is independent of change of origin and change of scale c) In a symmetrical distribution, mean deviation equals 4/5 of standard deviation d) In a symmetrical and bell shaped distribution quartile deviation is 1/3 of standard deviation Choose the correct answer from the options given below

A

b) and d)

B

a) and c)

C

c) and d)

D

a) and b)

Assertion (A): From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R): If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

A

Both (A) and (R) are correct

B

(A) is correct, but (R) is incorrect

C

(A) is incorrect, but (R) is correct

D

Both (A) and (R) are incorrect

Match List I with List II: List I (Pricing Strategies) List II (Description) (A) Ramsay pricing (I) Setting a high price when a product is first introduced and gradually lowering price as it gains scale (B) Price skimming (II) Firm charges lower price (than the ongoing price) to gain market entry (C) Cost plus pricing (III) Price deviations from marginal cost should be inversely proportional to price elasticity of the product (D) Penetration pricing (IV) It is full cost pricing strategy that also includes mark up for target return, degree of competition, price elasticity and availability of substitutes. Choose the correct answer from the options given below:

A

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

B

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

C

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

D

(A) - (I), (B) - (IV), (C) - (II), (D) - (III)

Assertion (A) Total utility will be maximum, when marginal utility to price of respective products are equal.
Reason (R) Deviation from this situation leads to reduction in maximum utility.

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