Multiple choice

Match the following

 
List-I
List-Il
1. Limit pricing theory
(i) E.H. Chamberlin
2. Selling Costs
(ii) Robin Marris
3. Sales maximisation model
(iii) J.S. Bain
4. Growth maximising model of the firm
(iv) William Baumol

  1. 1-(iii), 2-(i), 3-(iv), 4-(ii)

  2. 1-(ii), 2-(iv), 3-(i), 4-(iii)

  3. 1-(ii), 2-(i), 3-(iv), 4-(iii)

  4. 1-(iii), 2-(ii), 3-(iv), 4-(i)
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A Correct answer
Explanation

Limit pricing theory was developed by J.S. Bain to explain how firms set prices to deter entry. E.H. Chamberlin introduced the concept of selling costs in his theory of monopolistic competition. William Baumol proposed the sales maximisation model where firms prioritize revenue over profit. Robin Marris developed the growth maximising model focusing on firm expansion over profit maximization. The correct matching is 1-(iii), 2-(i), 3-(iv), 4-(ii).

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