1. What are the components of cost? a)Prime cost b) Factory cost
c) Office cost
d) Total cost
2. State the factors influencing pricing decisions.
a) Cost of manufacturing
b) Objectives and polices of management
c) Demand of the product
d)Distribution strength of the firm
3. Explain short run period in economics.
Short run period is defined as a period during which at least one element of factor input is in fixed supply, the fixed factor input is plant and equipment.
4. What is meant by incremental cost?
Incremental cost is the additional cost due to a change in the level or nature of business activity.
5. List out the various pricing policies in India. a) Skim
b) Penetration pricing c) Market
pricing d)Mixed pricing
6. What is meant by opportunity cost?
Opportunity cost of a factor refers to its value in its next best alternative use. Opportunity cost is also known as transfer earnings on the foregone alternatives.
7. What are the pricing methods?
a)Cost plus pricing method
b) Break even analysis method
c) Target rate of return method
d)leadership pricing method
e) Going rate pricing method
f) Marginal cost pricing method 8. What is price index?
The ratio of one price to the price of the same item at a different time.
9. List three semi variables costs.
b) Telephone charges c)
10. Explain the relationship between cost and output.
The cost of production in an industry depends on the rate of output which is important in economic analysis of cost .the relationship between cost and output determines the cost function. Once the cost function is determined estimates of future cost of production at various output levels can usually be obtained.
11. List the main difference between short term cost & long term cost.
The short term cost are cost which are recurring but the long term costs are used over a period of time.
12. Define safety margin.
Safety margin is the difference between the actual sales quantity and the break even sales quantity expressed in monetary terms or as a percentage.
13. What are producer goods?
Producer goods are economic goods made for the purpose of producing consumer goods and other capital goods.
14.State four pricing methods employed by businessmen.
15. a)Full cost pricing
b) Target rate of return pricing
c) Going rate pricing
d) Sealed bid pricing
16. Mention the methods of measuring national income. a)production
d) Expenditure method
17. Explain equilibrium price.
It is a price at which the supply of, & demand for, a commodity are equal.
17. Define price.
Price is defined as the exchange value of a product or a service quantified in monetary terms.
18. Define cost.
Cost is the amount of expenditure notional or actual, attributes to a thing .cost refers to sacrifice or receive some benefits.
19. Write a short note on skimming price policy.
Skimming pricing policy uses high prices to obtain a high profit and quick recovery of the development costs in the early stages of a products life before competition intensifies.
20. What is price discrimination?
Price discrimination is the charging of different prices of different groups of individual for the same goods or services for reasons not associated with differences in costs. This may occur when there is a geographic separation of markets ,the structure of demand in each market being different.