A smaller industry that grows to cater for the need of the major industry is
Subsidiary industry
Constructive industry
Manufacturing industry
Infant industry
Correct answer is A
A subsidiary, subsidiary company or daughter company is a company that is owned or controlled by another company, which is called the parent company, parent, or holding company. The subsidiary can be a company, corporation, or limited liability company.
How can a firm benefit from external economies?
Increasing its expenditure on advertising
Increasing the workforce
Locating in an area in which the industry is already established
Merging with another domestic firm engaged in the same industry
Correct answer is C
External economies is the benefit which a firm derives from the centration of similar firms which leads to an increase in output and a reduction in the unit cost
The firm will benefit from the area where the industry islocated.d
MUX = MUA
MUX = PX
PX = X
PX = PY
Correct answer is B
A consumer utility is maximized when the marginal utility per amount spent on a product is equal to the price.
When elasticity is zero, demand curve is
Perfectly elastic
Perfectly inelastic
Down-ward sloping
Upward sloping
Correct answer is B
Perfectly inelastic is when a change in price has an no effect on quantity demanded. The coefficient is zero.
What does the accelerator principles state?
Consumption is a function of the rate of change of income
Income is a function of the rate of change of investment
Investment is a function of the rate of change of income
Investment is a function of the rate of interest
Correct answer is C
Investment depends on the rate of change in income and that a change in income will cause a greater proportionate change in investment.