FYBCOM business economics semester 2 important questions | IDOL Mumbai university

FYBCOM business economics semester 2 important questions

Q.1 (B) State whether the following statement are True ot False: (Any 10)                                (10)

1. The necessary condition for profit maximization is that MC is equal to MR.
2. A firm is a price taker under perfect competition.
3. The monopoly firm is a price maker.
4. Cartel helps to avoid cut throat competition among oligopoly firms.
5. An oligopoly market has only one seller.
6. Price discrimination is practiced by a monopolist.
7. Companies use transfer pricing to avoid taxes.
8. Dumping is case of international price discrimination.
9. When NPV is positive the project is rejected.
10. Cost plus pricing is also known as mark-up pricing.
11. Capital budgeting ensures better utilization of resources.
12. Pay-back period is the rate of initial investment to annual cash flow.

Q.1 (B) State whether the following statement are true or false (Any ten)                               10

1. The necessary condition for profit maximization is that MC is equal to MR
2. The equilibrium price of the monopolist is always higher than that of the firm perfect competition
3. The Monopoly firm is a price maker
4. The demand curve of the form in monopolistic competitive competition is vertical
5. An oligopoly market has only one seller
6. Cartels control the price and the supply of the products
7. Public sector units often charge prices equal to their marginal cost
8. Price discrimination is always possible and profitable
9. Cost plus pricing is also known as markup pricing
10. Payback period method favours long-term projects
11. According to the IR method a project is accepted by IRR>market rate of interest
12. NPV is based on principle of Discounting

Q.6 Attempt A and B or Write short notes on any four

1. Analyse the short-run equilibrium of the firm under perfect competition with differential costs.    10
2. Discuss the role of advertising and highlight its advantages and disadvantages.                                  10

                                                       OR

Q.6 Write short notes: (Any four)                                                                                                             (20)

1. Significance of capital budgeting
2. Source of monopoly power
3. Transfer pricing
4. Distinction between perfect competition and monopolistic competition
5. Degrees of price discrimination
6. Excess capacity