UGC NET Commerce || Economics || June 2020

Statement - I: The least - cost or optimal input combination of labour and capital required that the marginal revenue productivity ratio of the two inputs should be equal to their price ratio.

Statement - II: In a hypothetical production function of the following form Q=−L³+15 L²+10 L

Where, Q=Quantity of the product and L= No. of variable input (labour), the marginal physical productivity of labour is −L²+15 L+10.

Choose the correct option from the following:

Match the items of List - I with the items of List-II and indicate the code of correct matching.

Choose the correct option from the following:

Manufacturing of T.V. sets and refrigerators and their pricing in India belong to which one of the following market structures?

Statement - I: Pricing at par with the market price of the existing brands is considered to be the most reasonable pricing strategy for a product which is being sold in a strongly competitive market.

Statement - II: Pricing below the market price has been found to be more successful when a seller intends to achieve a prestigious position among the sellers in the locality for selling prestigious goods of much superior quality.

Choose the correct option from the following:

Which of the following is not a correct matching with regard to price elasticity, change in price and change in total revenue?