Business Economics 11. Perfect competition is characterized by
large number of buyers and sellers homogeneous product free entry and exit of firms all the above View answer Correct answer: (D)
12. The distinction between variable cost and fixed cost is relevant only in
long period short period medium term mixed period View answer Correct answer: (B)
13. Purposes of Short term Demand forecasting doesn’t includes;
Making a suitable production policy. To reduce the cost of purchasing raw materials and to control inventory. Deciding suitable price policy Planning of a new unit or expansion of existing unit View answer Correct answer: (D)
14. In ______________ approach, the demand for new product is estimated on the basis demand of existing product
Growth curve approach Evolutionary approach. Opinion polling approach Vicarious approach. View answer Correct answer: (B)
15. The proportionate change in the quantity demanded of a commodity in response to change in the price of another related commodity is called
Price elasticity Related elasticity Cross elasticity Income elasticity View answer Correct answer: (C)
16. Which one is the method for measurement of elasticity
Proportional or Percentage Method Outlay Method Geometric method All the above View answer Correct answer: (D)
17. ______________ Method is also known as Sales-Force – Composite method or collective opinion method
Opinion survey Expert opinion Delphi method Consumer interview method View answer Correct answer: (A)
18. Which of the following is not a method of demand forecasting of new products
Trend projection Substitute approach Evolutionary approach Sales experience approach View answer Correct answer: (A)
19. Psychological pricing is also called as;
Penetration pricing Skimming pricing Odd pricing None of these View answer Correct answer: (C)
20. Customary pricing is also known as
Consumer pricing Conventional pricing Cost plus pricing Full cost pricing View answer Correct answer: (B)