A producer earns total revenue of Rs. 500 by selling 50 units of a commodity. How much price per unit he has charged for that commodity?

• A) Rs. 70
• B) Rs. 60
• C) Rs. 10
• D) Rs. 30

----------------- shows the cost differences to total cumulative output.

• A) Operating leverage
• B) Learning curve
• C) Scale economies
• D) Demand curve

If average cost in 2012 was Rs.100 and in 2013 fell to Rs.80, the learning rate is:

• A) 10%
• B) 20%
• C) 40%
• D) 30%

Cost is usually measured in:

• A) Monetary units
• B) Absolute term
• C) Physical units
• D) Percentage

Break even output can be calculated as:

• A) Break even output = Total variable cost / (Price + Average variable cost)
• B) Break even output = Total fixed cost / (Price – Average variable cost)
• C) Break even output = Total fixed cost / (Price + Average fixed cost)
• D) Break even output = Total fixed cost + (Price – Average variable cost)

If percentage change in cost is equal to the percentage change in output then:

• A) Cost elasticity is more than one
• B) Cost elasticity is less than one
• C) Cost elasticity is indeterminate
• D) Cost elasticity is equal to one

Cubic cost functions are graphically depicted as:

• A) Straight line
• B) U-shaped curves
• C) L-shaped curves
• D) S-shaped curves

The solution which satisfies all the constraints is known as the:

• A) Corner solution
• B) Wrong solution
• C) Non feasible solution
• D) Feasible solution

TVC = a + bQ. This equation depicts which of the following?

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

Which of the following will happen if there is a decrease in input prices for the firm?

• A) Cost function will shift upward
• B) Production will increase
• C) None of the given options
• D) Cost function will shift downward

High learning rate implies that as cumulative total output increases the manufacturing cost:

• A) not effected
• B) is rising
• C) becomes zero
• D) is declining

Short run average cost curves are U-shaped because of:

• A) The law of supply
• B) The law of diminishing returns
• C) The law of demand
• D) The law of diminishing utility

At breakeven quantity levels, total revenue used to be exactly equal to:

• A) fixed cost
• B) Total cost
• C) Variable cost
• D) Zero cost

Given the profit equation: $$\pi \, = \,10X\, + \,7Y$$ If we solve it for X, we obtain:

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

Which of the following is/are special type/s of problems of linear programming?

• A) Multiple optimal solutions
• B) Unbounded solutions
• C) Infeasible solutions
• D) All of the given options

If long run average cost increases with the increase in output, it shows:

• A) Economies of scale
• B) Returns to scale
• C) Diseconomies of scale
• D) Economies of scope

Operating leverage for a firm can be calculated as:

• A) Total fixed costs + Total variable costs
• B) Total fixed costs / Marginal costs
• C) Total fixed costs / Average variable costs
• D) Total fixed costs / Total variable costs

A producer sells 60 units of a commodity at the price of Rs. 10 per unit. How much total revenue he will earn?

• A) Rs. 600
• B) Rs. 700
• C) Rs. 100
• D) Rs. 300

In the linear programming model, linearity assumes constant prices of:

• A) capital
• B) Output
• C) Inputs
• D) labor

Which of the following model maximizes or minimizes a linear function subject to the set of linear constraints?

• A) Demand-Supply model
• B) Linear Programming model
• C) Regression model
• D) IS-LM model