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)
- The necessary condition for profit maximization is that MC is equal to MR.
- A firm is a price taker under perfect competition.
- The monopoly firm is a price maker.
- Cartel helps to avoid cut throat competition among oligopoly firms.
- An oligopoly market has only one seller.
- Price discrimination is practiced by a monopolist.
- Companies use transfer pricing to avoid taxes.
- Dumping is case of international price discrimination.
- When NPV is positive the project is rejected.
- Cost plus pricing is also known as mark-up pricing.
- Capital budgeting ensures better utilization of resources.
- Pay-back period is the rate of initial investment to annual cash flow.
FYBCOM Business Economics Sem 2 PDF Notes
FYBCOM Business Economics MCQ with Answers
Q.1 (B) State whether the following statement are true or false (Any ten) 10
- The necessary condition for profit maximization is that MC is equal to MR
- The equilibrium price of the monopolist is always higher than that of the firm perfect competition
- The Monopoly firm is a price maker
- The demand curve of the form in monopolistic competitive competition is vertical
- An oligopoly market has only one seller
- Cartels control the price and the supply of the products
- Public sector units often charge prices equal to their marginal cost
- Price discrimination is always possible and profitable
- Cost plus pricing is also known as markup pricing
- Payback period method favours long-term projects
- According to the IR method a project is accepted by IRR>market rate of interest
- NPV is based on principle of Discounting
Q.6 Attempt A and B or Write short notes on any four
- Analyse the short-run equilibrium of the firm under perfect competition with differential costs. 10
- Discuss the role of advertising and highlight its advantages and disadvantages. 10
Q.6 Write short notes: (Any four) (20)
- Significance of capital budgeting
- Source of monopoly power
- Transfer pricing
- Distinction between perfect competition and monopolistic competition
- Degrees of price discrimination
- Excess capacity