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

We can estimate cost functions of the firm by using which of the following method?

• A) Cost analysis
• B) Regression analysis
• C) Supply analysis
• D) Demand analysis

From given isoprofit function: $$QY\, = \,\Pi /b\, - \,a/b\,QX$$ slope of this function will be:

• A) b
• B) -a/b
• C) -b/a
• D) a

Which of the following will happen in case of increasing returns to scale?

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

If optimal multi plant activity level is 20000 and optimal production per plant is 5000, the optimal number of plants will be:

• A) 4
• B) 2
• C) 3
• D) 5

A corner point is a spot in the feasible space, where

• A) X axis and constraint conditions intersect
• B) X axis, Y axis or constraint conditions intersect
• C) X axis and Y axis intersect
• D) Y axis and constraint conditions intersect

Under perfect competition, profit is maximized at the point where:

• A) Average cost = Average revenue
• B) Average cost = marginal revenue
• C) Marginal cost = Marginal revenue
• D) Marginal cost = Average revenue