Microeconomics and Pricing

The PPC curve becomes linear.

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As goods purchased in the last are issued first in LIFO method, thus issues represent the current prices. In FIFO method, goods purchased first are issued first and thus issue represents historic price while stock in hand is valued at current prices. In average method, average price is the basis of issue while in weighted average method, weights are also considered.

When prices are rising, goods are recorded at previous prices i.e. lower prices. Thus, they show lower value of cost of production.

An oligopoly is a market structure characterized by a small number of large firms (sellers) dominating the market, while there are many buyers.

Explanation: The very purpose of marginal costing is to assess the risk taking capacity of a business firm. When the supply is in excess of the demand, or when a new product is launched, or when the installed capacity is not fully utilized, management of business firms would do well to sell below the total cost provided the selling price is at or below the marginal cost

Explanation: Management account aims at providing necessary information to the decision makers about the costing and pricing of product and services. Maginal cost pricing enables the business firms to adopt an aggressive pricing policy

Indifference curves represent combinations of goods that provide equal satisfaction; they slope downward from left to right because of the trade-off between goods.

The law of demand states that as price increases, quantity demanded decreases. This inverse relationship is derived from the law of diminishing marginal utility, which posits that each additional unit of a good provides less satisfaction than the previous one.

National income on current prices is higher than that at constant prices because price increase is higher than increase in production. When the value of goods and services is found out by multiplying the quantity produced during one year by the prices prevailing in that year, we call it National income at Current Prices. On the other hand, when the value of goods and services is calculated by multiplying the quantity during one year with prices of the base year, we call it National Income at Constant Prices. 

This is the correct answer. MSP is the minimum support price.

Under variable price strategy, a product is sold to similar buyers at different prices. Variable price strategy is followed in consumer durables like televisions, refrigerators, automobiles where a seller may charge lower prices from old customers and a high price from a new customer. The old or regular customers can bargain, as the profit margin in consumer durables is also high.

An industry is a group of firms. One of them controls the large share of the market that change in its supply will effect the market price. Such a dominant firm acts as a price leader and the other firms have to follow the pattern of price set up by the leader. So follow the leader pricing is also known as pattern pricing.

When selecting suppliers, businesses evaluate multiple criteria, including the consistency of supply, the quality of the goods provided, and the price. All these factors are critical for effective procurement.

Market demand is a complex concept influenced by the nature, size, and fluctuations of demand over time. All these aspects contribute to the overall understanding and analysis of market demand.