Assertion (A): Managerial economics is essentially micro-economic in character. Reason (R): It deals with individual actors in the economy, such as firms and individuals, and focuses on how firms react to changes in their specific economic environment. Choose the correct option:

Regarding the Sales Maximization goal within business economics, which of the following statements are accurate? 1. Increased market share achieved through higher sales revenue can provide a firm with long-term competitive advantages. 2. Achieving larger sales volumes allows a firm to reach economies of scale, which reduces average production costs. 3. An exclusive focus on sales revenue may lead to financial losses and the inefficient allocation of resources. 4. Firms following a sales maximization objective typically produce a lower level of output compared to those following a profit maximization objective. Choose the most appropriate answer from the options given below:

Regarding the Profit Maximization objective of a firm, which of the following statements are accurate? I. It encourages cost efficiency and resource optimization. II. It involves aligning marginal cost with marginal revenue for optimal financial returns. III. It prioritizes social and environmental responsibilities over financial sustainability. IV. It may result in a short-term focus that potentially compromises long-term sustainability. Choose the most appropriate answer from the options given below: