Micro II

Which one of the following is the feature of transfer pricing?

• Transact between departments

• Transact with consumers

• Multiple tax

• Double counting problem

Full Cost Pricing is also known as

• Transfer pricing

• Peak load pricing

• Cost plus pricing

• Multi product pricing

The firm will be in equilibrium when ___________

• It faces loss

• It maximizes utility

• It has no tendency to increase utility

• It has no tendency to change the output

Which one of the following is the objective of the firm?

• to make profits

• to make losses

• to satisfy demand

• to shutdown

Break even Point:

• Revenue > Cost

• Revenue = Satisfactio

• Revenue = Cost

• Revenue < Cost

The surplus of total revenue over total explicit and implicit costs is called Economic Profit.

The above statement is ......

• False

• Not sure

• Hypothetical

• True

Which one of the following is related to Marginal cost pricing?

• Price set equals to the extra cost of producing extra unit of output

• Zero cost

• Zero revenue

• Additional revenue for zero cost

The .......... are the minimum income which the entrepreneur must get to stay in business.

• Supernormal profit

• Normal Profit

• Dividend

• Interest

The surplus of total revenue over total implicit and explicit cost is called

• Economic Profit

• Social Profit

• Total Profit

• Abnormal Profit

According to the ......... objective of the firm, the corporator aims to achieve balance rate rate of growth.

• Profit Maximisation

• Profit minimisation

• Growth Maximisation

• Growth Minimisation