KIIT University 2007 B.Tech Electronics and Tele-Communication Engineering ENGINEERING ECONOMICS - Question Paper
ENGINEERING ECONOMICS
------5TH SEMESTER------
HAVE PICASA FOR BETTER VIEW
EE HU 501 (CE, CSE, E&TC, E&EE)
FIFTH SEMESTER EXAMINATION-2007 ENGINEERING ECONOMICS [ HU-501 ]
Full Marks: 70 Time: 3 Hours
Answer any SIX questions including Question No.l which is compulsory.
The figures in the margin indicate full marks.
Candidates are required to give their answers in their own words as far as practicable and of all parts of a question should be answered at one place only.
1. a) Write four factors affecting supply of a particular [2x10 commodity.
b) Consumer demand function for good x is given by the equation P=100-Q. If the price of the good is Rs.60/-the price elasticity of demand is
(i) 1.5 (ii) 1.6 (iii) 1.75 (iv) 1 (v)1.35
c) Explain why the minimum point of AC curve lies to the -right of the minimum point of AVC curve.
d) When the diminishing return begins to operate, then
(i) TVC begins to fall at an increasing rate
(ii) TVC rises at a diminishing rate
(iii) TVC falls at a decreasing rate
(iv) TVC rises at an increasing rate, Or
(v) TVC remains constant
(i)
KIIT-U/2007/A utumn End Semester Examination-2007
e) What is Margin of Safety?
T"
V
v a) Fvon\l amo
CW
Rs
Si
Nj
f) What is single payment compound amount?
g) Define Cross Elasticity of Demand.
h) Define Profitability Index.
i) What is meant by Depreciation?
j) What is Shut down point of a firm?
a) Define Demand for a commodity. Explain various factors which determine demand for a commodity.
b) Consider the following demand and supply functions [5
Demand function: P = 100 - 4Q Supply function : P = 40 + 2Q Determine the equilibrium Price and Quantity.
[5
3. a) A firm has the following short run function where only variable input is Labour (L).
Q = 9L1 - 0.5 L2. Decide how many number of labour
will be employed by a rational firm at the end of
B stage-1 and stage-ll.
sy
b) Show the relationship between AC and MC in the short run.
KIIT-U/2
KJ/T-U/2007/Autumn End Semester Examination-2007
a) From the following data calculate - [5
(i) Break Even point expressed in terms of sales amount/revenue.
(ii) Number of units that must be sold to earn a profit of Rs.60,000 per year.
Sales price per unit - Rs.20 Variable Manufacturing cost per unit - Rs.11 Variable selling cost per unit - Rs.3 Fixed factory over heads (per year) - Rs.5,40,000 Fixed selling cost (per year) - Rs.2,52,000
b) Beta Company Ltd. is a monopolist having [5 government license to produce and sell a device that can reduce air pollution. When this device is fitted to
I the two-wheelers that can reduce the pollutants released to air by a half. The demand function of the company is Q = 53 - P The total cost function is TC = 5Q
What is the maximum possible profit that can be earned by the company?
KHT-U/2007/Autumn End Semester Examination-2007
10%. Find out whether it is profitable in selecting the above project by using NPV method.
b) A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $4000 and a 10 year of depreciable life. The estimated salvage value of the saw is zero at the end of 10 years. Determine annual depreciation amount by using straight line method. Tabulate the annual depreciation amount and the book value of the saw at the end of each year.
6. a) A firm operating in a perfectly competitive market maximizes its profit by adjusting its output until its Marginal cost equals output price. Explain.
b) Explain how depreciation is calculated by sum of year-digit method.
7. Differentiate between cost push and demand pull inflation.
K1IT-U/2007/Autumn End Semester Examination-2007
|
Attachment: |
| Earning: Approval pending. |
