F.Y.B.Com. Sem II Fill in the blanks

 

Q.1. A) Select the best answer from the given options and rewrite the statement 

       i)         A monopolist is a price -------

a)  taker          b) maker            c) both a and b        d) none of the above

 
ii)      Which pricing strategy uses various class distinctions?
            a) Marginal cost pricing                      b) Cost plus pricing

c) Multiple product pricing                 d) Mark – up pricing

iii)        P – C is the ------ in mark up pricing
            a) profit margin                                   b) Price
            c) persistent dumping                          d) easticity
iv)         Capital investment decision is irreversible because ----
            a) of absence of second hand market b) the expenditure is very large

            c) investment is done by government   d) both and b
v)        Payback period method focuses on ------
            a) rate of profit                            b) rate of interest

            c) innovation                               d) demand
vi)       Capital budgeting is a process involving -------
            a) Planning      b) Analysis        c) Evaluation     d) All the above

      vii)……….is usually understood as a place where sellers (producers) and buyers meet for settling a transaction

a)Market                                                   b) Monopoly           

c) Monopolistic competition                    d) none of the above

        viii) In the long – run all costs are ------

            a) fixed                                    b) variable

            c) avoidable                             d) acceptable

          ix)     ………….is that amount of profit which keeps a person in business

            a) Super normal profit                          b) Normal profit    

c) Subnormal profit                             d) Excess profit

          x)  In monopolistic competition product sold is ----

a) homogeneous            b) differentiated         

c) inferior                    d) luxurious goods

xi)         In the long – run all costs are ------

            a) fixed    b) variable  c) avoidable    d) acceptable

      xii)       ------- is not a feature of monopoly

            a) Single seller    b) No entry     c) Downward demand curve     d) Interdependency

xiii)        In monopolistic competition product sold is ----

a) homogeneous            b) differentiated          c) inferior        d) luxurious goods
xiv)         a firm in monopolistic competition will earn ---- in long run 

a) Excess profit      b) Loss      c) Normal profit   d) all the above

xv)        A kinky demand curve indicates-----

a) Price flexibility in non-collusive oligopoly  b) Price flexibility in collusive oligopoly    c) Price rigidity  in collusive oligopoly          d) Price rigidity  in non-collusive oligopoly    

xvi)       The seller takes away all the consumers’ surplus in ---- 
            a) First degree price discrimination                 b) Second degree price discrimination  

c) Third degree price discrimination              d) Forth degree price discrimination 

xvii)        A kinky demand curve indicates-----

a) Price flexibility in non-collusive oligopoly  b) Price flexibility in collusive oligopoly   c) Price rigidity  in collusive oligopoly     d) Price rigidity  in non-collusive oligopoly  

xviii)       The seller takes away all the consumers’ surplus in ----
            a) First degree price discrimination                 b) Second degree price discrimination

            c) Third degree price discrimination               d) Forth degree price discrimination

xix)      a situation where the monopolist enjoys a monopoly in the home market and accepts a       competitive price in the world market is ……….
            a) Marginal cost pricing                      b) Cost plus pricing

c) Multiple product pricing                 d) Dumping

xx)        If the future amount, after one year, is Rs. 110 its present value is Rs. 100, at10 %             interest rate, the method calculating this is known as the …..
            a) principle of discounting                   b) principle of compounding

            c) innovation                                         d) All the above

xxi)         Capital investment decision is irreversible because ----
            a) of absence of second hand market           b) the expenditure is very large

            c) investment is done by government         d) both a and b

xxii)        Payback period method focuses on ------
            a) rate of profit            b) rate of interest

            c) innovation   d) demand

xxiii)       …………is defined as the difference between the present value of all net cash flows and the cost of original investment
            a) Nate Present Value             b) Pay back period

            c) Evaluation                         d) Internal rate of return

xxiv)   Kinky demand curve is a curve with upper part more elastic and lower part ……... 

a) inelastic                               b) elastic     

c) more elastic                         d) all the above

 xxv)  …….. is a market situation which consists of following characteristics, large 

            number of sellers and buyers, Homogeneous commodities, free entry and exit

            a) Pure competition                             b) Oligopoly

c) Monopolistic competition               d)  All the above

xxvi)         A monopolist is a price -------

a)taker                                                 b) maker           

c) both a and b                                    d) none of the above

xxvii)       ------- is not a feature of monopoly

            a) Single seller                                     b) No entry    

c) Downward demand curve     d) Interdependency

xxviii) …….. aims at promoting a commodity against its rival and it is done for promoting the     sell.

a)         Production cost           b)         Fixed cost

c)         Selling cost              d)             Total cost
xxix)         Afirm in monopolistic competition will earn ---- in long run 

a) Excess profit                       b) Loss     

c) Normal profit                      d) all the above

xxx)        The price which is charged remains the same without further change is called …….

a) Price rigidity                         b) Normal price  

c) Flexible price                d) Elastic price  

xxxi)       When the total market is divided into segments andeach segment is charged a        separate price is known as
            a) First degree price discrimination                 b) Second degree price discrimination

c) Third degree price discrimination               d) Forth degree price discrimination

xxxii)      Which pricing strategy uses various class distinctions?
            a) Marginal cost pricing                      b) Cost plus pricing

c) Multiple product pricing                 d) Mark – up pricing

xxxiii)        Cost Plus Pricing is also known as ……….
            a) profit margin                                   b) Mark up pricing
            c) persistent dumping                          d) elasticity

xxxiv)         ……… is a process involving planning, analysis, evaluation and selection of the most        profitable projects for investing the funds available to the firm
            a) capital budgeting                b) trend analysis

            c) regression                            d) both a and b
xxxv)        P – C is the ------ in mark up pricing
            a) profit margin                                   b) Price
            c) persistent dumping                          d) elasticity

xxxvi)       Capital budgeting is a process involving -------
            a) Planning                              b) Analysis

c) Evaluation               d) All the above