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Assignment - B
Q.l. Why a firm is price taker and not a price maker under perfect market conditions? Q.2. Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol's sales revenue maximization theory as an alternative objective of the firm. Q.3. Distinguish between skimming price and penetration price policy. Which of these policies is relevant in pricing a new product under different competitive conditions in the market?
CASE STUDY
Michael Wolfson, a computer programmer had a decent job with the financial powerhouse Bear, Steams & Co. Now, he refurbishes computers at the basement in his house and sells it through e-bay. He plans to join as a school teacher. Michael lost his job in 2003. He was told that his job is being outsourced to India. Paul Schwartz, a
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Assignment C
Q.l. A change in quantity demanded refers to (a) Contraction along a demand curve (b) Shift of the demand curve (c) Movement along a demand curve (d) Expansion along a demand curve Q.2. A change in demand refers to (a) Contraction along a demand curve (b) Shift of the demand curve (c) Movement along a demand curve (d) Expansion along a demand curve Q.3. If two goods are substitutes, the price elasticity of demand is (a) Negative (b) Positive (C) Zero (d) Not defined Q.4 If two goods are complementary, the price elasticity of demand is
-kP
(c) MR=p 1 @w (d) None of the above Q.10. In case of inferior goods the income elasticity is (a) Positive (b) Negative (c) Zero (d) None of the above. Q.ll. An indifference curve is the locus of (a) All the combinations of good X and Y giving different level of satisfaction (b) All the combinations of capital and labor giving same level of output (c) All the combinations of good X and Y giving same level of satisfaction (d) All the combinations of capital and labor giving different level of output Q.12. Short run in production function refers to (a) When all factors of production become variable (b) One factor of production varies keeping all other constant