Question
A shopkeeper sets the marked price of an item at 50%
higher than its cost price. He then offers two successive discounts of 20% and m% on the marked price, resulting in an overall loss of 16% on the transaction. What is the value of m ?Solution
Let the cost price of the article be Rs. 'x' Marked price of the article = x X 1.5 = Rs. '1.5x' Selling price of the article = x X 0.84 = Rs. '0.84x' 1.5x X 0.8 X {1 - (m/100) } = 0.84x Or, 1 - (m/100) = (0.84x/1.2x) Or, 1 - (m/100) = 0.7 Or, (m/100) = 0.3 So, m = 30
If the firms under perfect competition have different costs, abnormal profits can be earned in the long run only by
A firm maximizes its profit when
Concept of 'Consumer's Surplus' was evolved by
The goods whose demand is not tied with the demand for some other goods are said to haveÂ
 The above curve is a
Diamond-water paradox establishes the fact that
A rightward shift in supply curve indicates
The positive cross elasticity of demand between two products means the two products
Economics of scale means
Market demand for any good is a function of the
Relevant for Exams:
