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

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