Question

Match List I with List II 
Choose the correct answer from the options given below: 
 

• A. A - II, B - I, C - IV, D - III
• B. A - I, B - II, C - IV, D - III
• C. A - II, B - I, C - III, D - IV
• D. A - III, B - I, C - II, D - IV

Hint:

Use key terms to match:
- Opportunity Cost $\leftrightarrow$ "Sacrifice of alternatives"
- Incremental $\leftrightarrow$ "Impact of alternative decision"
- Equi-marginal $\leftrightarrow$ "Allocation of resources"
- Time Perspective $\leftrightarrow$ "Long-run and short-run"

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Managerial economics utilizes specific decision-making principles.
These principles help business managers allocate scarce resources and evaluate trade-offs.
Detailed Explanation:
Let us match each principle from List I with its definition in List II:
- A. Opportunity cost principle: This principle measures the cost of a choice as the value of the next-best forgone alternative.
This matches with II. The sacrifice of alternatives required by that decision.
- B. Incremental principle: This principle analyzes changes in total cost and total revenue resulting from a specific decision.
This matches with I. Estimating the impact of the alternative decision on costs and revenues.
- C. Equi-marginal principle: This principle states that profits are maximized when resources are allocated such that marginal returns are equal across all uses.
This matches with IV. Allocation of available resources among the alternative activities.
- D. Principle of time perspective: This principle emphasizes that managerial decisions must balance both immediate short-term impacts and sustainable long-term outcomes.
This matches with III. A decision take account of the right balance between the long-run and short-run effects.
Let's assemble the matches: \[ A - \text{II}, \ B - \text{I}, \ C - \text{IV}, \ D - \text{III} \] This matches Option (A).

Step 2: Final Answer:
The correct matching sequence is A - II, B - I, C - IV, D - III.