Chapter 7: Product Pricing Theories and Practices

Very Short Question Answer What do you mean by perfect competition? Perfect competition is the market structure where there are too many buyers and too many sellers, each of whose output is so small in relation to total industry output that they can not affect the market price of the product. Point out features of […]

Chapter 6: Cost and Revenue Curve

Very Short Question Answer Define opportunity cost. Opportunity cost is defined as the loss of income due to opportunity foregone. In other words, opportunity cost refers to what an input could earn in its next best alternative job. Distinguish between implicit cost and explicit cost. Implicit cost is defined as the value of factor inputs […]

Chapter 5: Theory Of Production

Very Short Question Answer Define the law of variable proportion. The law of variable proportions examines the production with one fac variable, keeping the quantities of other factors fixed. When the quantity of one factor is changed, keeping the quantity of other factors constant, the proportion between the variable factor and fixed factor is changed. […]

Chapter 4: Analysis of Consumers Behavior

Very Short Question Answer of consumers behavior Define utility. Utility is defined as the human wants satisfying power of the commodity. It is the subjective concept, which changes person to person, time to time and place to place. What do you mean by cardinal utility approach? Cardinal utility approach means that method of analyzing utility […]

Chapter 3: Elasticity of Demand and Supply

Very Short Question Answer 1. Define elasticity of demand. Elasticity of demand is defined as the responsiveness of change in demand to the change in factors determining demand. 2. What are the different types of elasticity of demand? There are three types of elasticity of demand, which are as follows: i. Price elasticity of demand […]

Chapter 2: Market Equilibrium and Efficiency

Very Short Question Answer of Market Equilibrium and Efficiency Define demand. Demand is defined as the desire for a commodity with ability and willingness to a pay. In other words, it is also defined as the quantity of a commodity which a consumer buys in a market at the given price and time period. List […]

Chapter 1: Introduction

Very Short Questions Answers Define business economics. Business economics is defined as the branch of economics which deals with application of economic principles and methods for business and managerial decision making of firms. Write any five characteristics of business economics. The features of business economics are as follows: i. Business economics is micro economics. ii. […]