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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 9

Q1 | Under ….. Method, a panel is selected to give suggestions to solve the problems in hand
  • Opinion survey
  • Expert opinion
  • Delphi method
  • Consumer interview
Q2 | Consumer Interview method of demand forecasting may undertaken by;
  • Complete enumeration
  • Sample survey
  • End‐use method
  • All the above
Q3 | In …….. approach, the demand for new product is estimated on the basis demand of existing product
  • Growth curve approach
  • Evolutionary approach.
  • Opinion polling approach
  • Vicarious approach.
Q4 | In …….approach, Consumers reactions on the new products are found out indirectly with the helpof specialized dealers
  • Growth curve approach
  • Evolutionary approach.
  • Opinion polling approach
  • Vicarious approach.
Q5 | In ………approach, on the basis of the growth of an established product, the demand for the newproduct is estimated
  • Growth curve approach
  • Evolutionary approach.
  • Opinion polling approach
  • vicarious approach
Q6 | Method of demand forecasting is also called “economic model building”
  • Opinion survey
  • Complete enumeration
  • Correlation and regression
  • Delphi method
Q7 | Criteria for good demand forecasting includes;
  • Plausibility
  • Simplicity
  • Economy
  • All the above.
Q8 | ………..is the base of marketing planning
  • Demand Estimation
  • Demand analysis
  • Demand function
  • Demand forecasting
Q9 | Growth curve approach is used for forecasting demand of ………….products
  • New
  • Old
  • Existing
  • Both old and existing.
Q10 | Which of the following is not a method of demand forecasting of new products
  • Trend projection
  • Substitute approach
  • Evolutionary approach
  • Sales experience approach
Q11 | ………..= R2‐R1/Q2‐Q1
  • Average revenue
  • Total revenue
  • Marginal revenue
  • Incremental revenue
Q12 | ……….. Measures the differences between the new total revenue and existing total revenue
  • Average revenue
  • Total revenue
  • Marginal revenue
  • Incremental revenue
Q13 | ………. means the total receipts from sales divided by the number of unit sold.
  • Average revenue
  • Total revenue
  • Marginal revenue
  • Incremental revenue
Q14 | So long as Average Revenue is falling, Marginal Revenue will be …………. Average Revenue
  • Less than
  • More than
  • Equal to
  • None of these
Q15 | Where Marginal revenue is negative, TR will be …………..
  • Rising
  • Falling
  • Zero
  • One
Q16 | Total Revenue will be maximum at the point where Marginal Revenue is
  • One
  • Zero
  • <1
  • >1
Q17 | ………….. is the change in total revenue irrespective of changes in price or due to the effect ofmanagerial decision on revenue
  • Average revenue
  • Total revenue
  • Marginal revenue
  • Incremental revenue
Q18 | In…………..pricing fixed cost are excluded.
  • skimming pricing
  • going rate pricing
  • administered pricing
  • marginal cost pricing
Q19 | Fixing high price during the introduction is called
  • skimming
  • penetrating
  • full cost pricing
  • target pricing
Q20 | The firm charges price in tune with the industry’s price is called
  • competitive pricing
  • going rate pricing
  • tune pricing
  • target pricing
Q21 | Method of charging low price initially called……………
  • skimming
  • penetrating
  • full cost pricing
  • target pricing
Q22 | Pricing is done on the basis of managerial decisions, not on the basis of cost, demand etc…
  • Managerial pricing
  • Administered pricing
  • Full cost pricing
  • Competitive pricing
Q23 | Which of the following method of pricing is popular in wholesale and retail trades
  • skimming
  • penetrating
  • full cost pricing
  • target pricing
Q24 | Which one of the following is not an internal factor influencing pricing policy
  • cost
  • objectives
  • marketing mix
  • demand
Q25 | Which one of the following is an internal factor influencing pricing
  • demand
  • competition
  • distribution channel
  • product life cycle