Average variable cost can be calculated as:

• A) Average cost / Output
• B) Marginal cost / Output
• C) Total variable cost / Output
• D) Fixed cost / Output

While deriving firm’s cost functions, input prices are assumed to be:

• A) Flexible
• B) Constant
• C) Variable
• D) Zero

__________ occurs along the boundary of the feasible solution area, at the corner points.

• A) none of the above
• B) optimal feasible solution
• C) linearity solution
• D) feasible solution

In a linear programming problem, all of the relations must be:

• A) Linear
• B) Identified
• C) Quadratic
• D) Non linear

In which of the following cases, cost elasticity will be more than one?

• A) When percentage change in cost is less than the percentage change in input
• B) When percentage change in cost is less than the percentage change in output
• C) When percentage change in cost is equal to the percentage change in output
• D) When percentage change in cost is greater than the percentage change in output

AVC = a/Q + b is an example of which of the following?

• A) Linear cost function
• B) Quadratic cost function
• C) Cubic cost function
• D) Simultaneous function

The firm’s long run average cost curve is derived from the:

• A) Long run marginal cost curve
• B) Short run marginal cost curve
• C) Short run total cost curve
• D) Long run total cost curve

If the percentage change in profit is Rs. 400 and percentage change in sales is Rs. 100 then what will be the degree of operating leverage?

• A) 1
• B) 2
• C) 4
• D) 3

Which economist introduced the simplex method?

• A) George B Dantzig
• B) John von Neumann
• C) Leonid Kantorovich
• D) Joel Dean

The learning curve can be expressed algebraically as follows:

• A) None of the above
• B) C = aQ^bL
• C) C = Q^b
• D) C = aQ^b

Which of the following is (are) the component (s) of the linear Programming model?

• A) Set of decision variables
• B) Set of constraints
• C) Objective function
• D) All of the given options

Percentage change in profit due to one unit change in sales is known as:

• A) Degree of freedom
• B) Economies of scale
• C) Cost elasticity
• D) Degree of operating leverage

Cost volume profit analysis is also known as:

• A) Regression analysis
• B) Break even analysis
• C) Demand analysis
• D) Supply analysis

Decreasing returns to scale refers to:

• A) Decreasing costs
• B) Increasing costs
• C) No costs
• D) Constant costs

When minimum efficient scale (MES)is low relative to total industry demand, it indicates:

• A) Less competition
• B) None of the above
• C) Vigorous competition
• D) No competition

If cost elasticity is equal to one, it implies:

• A) Economies of scale
• B) Returns to scale
• C) Economies of scope
• D) No economies of scale

Given the profit equation: $$\pi \, = \,12X\, + 9Y$$ If we solve it for Y, we obtain:

• A) $$Y\, = \,\pi /9\, - \,4/3$$
• B) $$Y\, = \,\pi /10\, - \,4/3$$
• C) $$Y\, = \,\pi /7\, - \,7/10$$
• D) $$Y\, = \,\pi /7\, - \,10/10$$

Usually we measure output in:

• A) Physical units
• B) Monetary units
• C) Percentage
• D) Rupees

In the linear programming, linearity implies that each decision variable has:

• A) Non negativity constraint
• B) Constraint
• C) None of the above
• D) negativity constraint

A producer earns total revenue of Rs. 700 by selling certain units of a commodity at the price of Rs. 10 per unit. How many units he has sold of that commodity?

• A) 60 units
• B) 10 units
• C) 70 units
• D) 30 units