Answer: Option C. -> Dividing target groups as per their needs
Answer: (c)
Market segmentation is a marketing strategy that refers to the aggregating of prospective buyers into groups, or segments, having similar needs, wants, or demand characteristics.
Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.

Answer: Option D. -> Constant returns to scale
Answer: (d)
If output increases by that same proportional change as all inputs change then there are constant returns to scale (CRS).
If output increases by less than that proportional change in inputs, there are decreasing returns to scale (DRS). If output increases by more than that proportional change in inputs, there are increasing returns to scale (IRS).

Answer: Option A. -> Schumpeter
Answer: (a)
The Innovation Theory of Profit was proposed by Joseph. A. Schumpeter, who believed that an entrepreneur can earn economic profits by introducing successful innovations.
In other words, the innovation theory of profit posits that the main function of an entrepreneur is to introduce innovations and the profit in the form of reward is given for his performance.

Answer: Option A. -> inventories accumulate
Answer: (a)
Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in.
This will lead to a buildup in stocks (inventories) and this sends a signal to producers either to cut prices (to stimulate an increase in demand) or to reduce output so as to reduce the buildup of excess stocks.
Either way - there is a tendency for output to move closer to the current level of demand.

Answer: Option A. -> MP = 0
Answer: (a)
Total product (TP) is the total output a production unit can produce, using different combinations of factors of production.
When marginal product =0 (at point D in the figure), the total product is at its maximum (as seen at point C in the figure given below). Then en as the marginal product becomes negative, the total product starts going down.

Answer: Option C. -> Heavy selling costs
Answer: (c)
Heavy selling cost is one of the defining features of an oligopoly. Firms resort to heavy selling costs to attract customers.
Under this market form, the firms have to compete to promote their sale by largely homogenous products, differentiated mainly by heavy advertising and promotional expenditure that ultimately adds to the total selling cost.

Answer: Option A. -> Matrix method
Answer: (a)
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix.
Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.

Answer: Option C. -> Income = Consumption + Saving
Answer: (c)Consumers do one of two things with their disposable income: They save it or they spend it. So Income = Consumption + Saving.

Answer: Option D. -> Consumption
Answer: (d)
Desired savings are kept equal to desired investment by responses to interest rate changes.
Savings identity or the savings-investment identity is a concept in National Income Accounting stating that the amount saved (S) in an economy will be the amount invested (I). This identity only holds true because investment here is defined as including inventories.
Thus, should consumers decide to save more, and spend less, the fall in demand would lead to an increase in business inventories. The change in inventories brings savings and investment into balance without any intention by the business to increase investment.

Answer: Option C. -> Closed economy
Answer: (c)
A Closed economy is an economy in which no activity is conducted with outside economies.
A closed economy is self-sufficient, meaning that no imports are brought in and no exports are sent out. The goal is to provide consumers with everything that they need from within the economy's borders.