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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 10
Q1 | Cost plus pricing is also called
- margin pricing
- full cost pricing
- mark up pricing
- all the above
Q2 | Average cost pricing is also called as
- cost plus pricing
- marginal cost pricing
- margin pricing
- both a & c
Q3 | Under which method, the cost is added with the predetermined target rate of return on capital invested
- Cost plus pricing
- Target pricing
- Mark up pricing
- None of these
Q4 | Target pricing is also called as
- Cost plus pricing
- Rate of return pricing
- Mark up pricing
- None of these
Q5 | Under the Marginal cost pricing, the price is determined on the basis of;
- Fixed cost
- Variable cost
- Total cost
- Average cost
Q6 | Cinema Theater, telephone bills etc..are following
- Full cost pricing
- Marginal cost pricing
- Differential pricing
- Mark up pricing
Q7 | Price discrimination is also called as
- Discriminatory pricing
- Differential pricing
- Average cost pricing
- a & b above
Q8 | The method of pricing which is also known as Parity pricing and Acceptance pricing is
- Differential pricing
- Going rate pricing
- Discriminatory pricing
- Mark up pricing
Q9 | The pricing of cup of tea or coffee, is an example of
- Mark up pricing
- Marginal cost pricing
- Conventional pricing
- Cost plus pricing
Q10 | ……………………is the method of leadership pricing
- Going rate pricing
- Follow up pricing
- Barometric pricing
- Parity pricing
Q11 | Generally used strategy for pricing new products is/are
- Skimming price strategy
- Penetration price strategy
- Both a & b
- None of these
Q12 | …………… provide guidelines to carry out ……………
- Pricing strategies, pricing policies
- Pricing policies, pricing strategies
- Pricing rules, pricing policies
- Pricing rules, pricing strategies
Q13 | Psychological pricing is also called as;
- Penetration pricing
- Skimming pricing
- Odd pricing
- None of these
Q14 | Prices of Bata shoe as Rs.99.99, this pricing is
- Mark up pricing
- Odd pricing
- Marginal cost pricing
- Follow up pricing.
Q15 | Which one of the following is not a reason for adopting skimming price strategy
- When the demand of new product is relatively inelastic.
- When there is no close substitutes
- Elasticity of demand is not known
- Product has high price elasticity in the initial stage
Q16 | Which one of the following is not a reason for adopting penetration price strategy
- Product has high price elasticity in the initial stage.
- The product is accepted by large number of customers.
- Economies of large scale production available to firm
- When the buyers are not able to compare the value and utility
Q17 | Customary pricing is also known as
- Consumer pricing
- Conventional pricing
- Cost plus pricing
- Full cost pricing
Q18 | Which of the following is/ are the reason for adopting penetration price strategy
- Economies of large scale production available to firm.
- Potential market for the product is large.
- Cost of production is low.
- All the above
Q19 | Which of the following is/ are the reason for adopting skimming price strategy
- When the buyers are not able to compare the value and utility.
- To attract the high income customers.
- When the product has distinctive qualities, luxuries
- All the above
Q20 | The market with a single producer’’
- perfect competition
- monopolistic competition
- oligopoly
- monopoly
Q21 | In the oligopoly market there are
- large no. of firms
- a few firms
- a single firm
- an infinite no. of firms
Q22 | The short run production function is called;
- Returns to scale
- law of variable proportion
- Production possibility frontier
- None of these
Q23 | Under oligopoly a single seller cannot influence significantly
- market price
- quantity supplied
- advertisement cost
- all the above
Q24 | Average revenue is the revenue per
- unit commodity sold
- total commodity sold
- marginal commodity sold
- none of these
Q25 | The distinction between variable cost and fixed cost is relevant only in
- long period
- short period
- medium term
- mixed period