Explain the discounting principle. Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next five years at 10% interest.
Answer. According to this principle, if a decision impacts costs and revenues in long-run, those costs and revenues should be discounted.......
....FOR ANSWERS BUY THE HELP MATERIAL....
With reference to the marketing approach of demand measurement explain any two important sources of data used in demand forecasting.
Answer. In essence demand measurement looks into people's readiness to pay for a product you can use a survey to ask simply how much people...... In marketing terms this implies the highest potential demand.......
How are Isoquants different from Isocost? Illustrate using graphs.
Answer. Isoquants let us show all of the combinations of capital and labor which could be......... The different isocost lines stand for different levels of total cost.......
“An analytical tool frequently employed by managerial economists is the break even chart, an important application of cost functions.” Discuss this statement giving examples from any firm.
Answer. A break-even chart plots the sales revenue, various costs so it helps identify the break even point and margin of safety..... To create a break even chart, plot a graph of sales against production.......
Describe how oligopolistic competition exists in the real world giving examples from FMCG Companies.
Answer. oligopolistic competition referes to a situation where only a handful of large firms account for a fairly large market share.....
Competition in oligopolistic industries has a tendency to manifest itself in nonprice forms like advertising.......
Q.Write short notes on the following:
a) Product Differentiation
b) Equi - Marginal Principle
c) The Price Elasticity of Demand
Answer. Product differentiation is a marketing strategy that companies use to differentiate a product from comparable offerings.......
The price elasticity of demand measures the sensitivity of the volume demanded to adjustments in the price. Demand is inelastic if it does not........ It is calculated by dividing the proportionate change in quantity demanded by the........