A firm is bearing cost of Rs.52, 000 for producing its product and earning Rs.55, 000. What is the total profit of the firm?

• A) Rs.107, 000
• B) Rs.55, 000
• C) Rs.3, 000
• D) Rs.52, 000

In monopoly, demand curve is:

• A) Negatively sloped
• B) Positively sloped
• C) Horizontal
• D) Vertical

Which of the following is TRUE about shadow prices?

• A) None of the given options
• B) Change in objective value = Shadow price
• C) Change in objective value = (Shadow price) (Change in the right hand side of constraint
• D) Change in objective value = Change in the right hand side of constraint

Which of the following market structure lies between monopoly and perfect competition?

• A) Oligopoly
• B) Monopoly
• C) Monopolistic competition
• D) Perfect competition

Monopoly firm breaks even at the point where:

• A) Average total cost < Price
• B) Average total cost = Marginal cost
• C) Average total cost > Price
• D) Average total cost = Price

In case of dual constraints, binding constraints imply:

• A) Two slacks
• B) No slack
• C) One slack
• D) Three slacks

Public utilities are an example of:

• A) Perfect competition
• B) Oligopoly
• C) Natural monopoly
• D) Monopolistic competition

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

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

which of the following aspects of production are dealt in engineering technique:

• A) Administrative aspects
• B) Cost aspects
• C) None of the above
• D) Technical aspects

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) IS-LM model
• D) Regression model

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

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

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

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

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

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

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

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

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

Who introduced the concept of linear programming?

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

If TFC= 200, Price = 10 and AVC = 5, than Break even output level will be:

• A) 20
• B) 40
• C) 30
• D) 50

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

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

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

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

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

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