CAT Questions

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Making Optimal decisions at the margin requires "Weighing the costs and benefits of a decision before deciding if it should be pursued".

The demand curve facing a perfectly competitive firm is a horizontal straight line equal to the equilibrium price of the entire market because a perfectly competitive firm can sell all units brought to market at the same price.

Equivalent units of production are equal to number of whole units that could have been completed if all work of the period had been used to produce whole units.

The raise in the price of a product may be due to increase in cost of production, increase in the demand of the product and increase in the margin.

When the price of a product increases its demand may fall as per the Law of Demand and an increase in the competition.

The Public Affairs Centre is a not-for-profit research think tank situated in Bengaluru, Karnataka. It works at improving the quality of governance in India. The institute conducts research activities in two major fields, public policy and participatory governance.