Diseconomies of scale arise in which of the following conditions?

• A) If cost elasticity is equal to one
• B) If cost elasticity is less than one
• C) If cost elasticity is more than one
• D) If cost elasticity is equal to zero

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

• A) 50
• B) 40
• C) 20
• D) 30

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

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

Engineering technique uses knowledge of the ___________ relationship between inputs and outputs:

• A) Negative
• B) Monetary
• C) Neutral
• D) physical

Economies of scale arise in which of the following conditions?

• A) If cost elasticity is more than one
• B) If cost elasticity is equal to one
• C) If cost elasticity is less than one
• D) If cost elasticity is equal to zero

In the production process, if there is an increase in the cost of raw material then which of the following will happen?

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

Theory of duality was developed in:

• A) 1930
• B) 1949
• C) 1947
• D) 1939

Difference between accounting and economic costs arises because economic cost also includes:

• A) Opportunity cost
• B) Variable cost
• C) Fixed cost
• D) Total cost

Collectively slack variables and surplus variables are called as:

• A) Dummy Variable
• B) Dependent variable
• C) Explanatory variable
• D) Independent variable

Which of the following computer soft wares are used to solve the problem of linear programming?

• A) LINDO
• B) Fore Profit software
• C) All of the given soft wares
• D) MS Excel Solver

Who introduced the concept of linear programming?

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

which of the following is used to calculate optimal number of plants:

• A) None of the above
• B) Optimal multi plant activity level / Optimal Production per plant
• C) Optimal Production per plant / Optimal multi plant activity level
• D) Optimal multi plant activity level - Optimal Production per plant

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

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

A linear programming problem has an optimal solution if it occurs at which of the following points?

• A) Corner point of the feasible space
• B) Mid point of the non feasible space
• C) Corner point of the non feasible space
• D) Mid point of the feasible space

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