Deemed University 2011 B.B.A University: Lingayas University Term: III Title of the : Business Mathematics-I - Question Paper

Roll No. ..

 

Lingayas University

BBA-MBA (Integrated) 1^st Year

Examination May 2011

Business Mathematics-I (BA - 1102)

 

[Time: 3 Hours] Max. Marks: 100]

 

Before answering the question, candidate should ensure that they have been supplied the correct and complete question paper. No complaint in this regard, will be entertained after examination.

 

Note: Attempt five questions in all. All questions carry equal marks. Select two questions from Section A and two questions from Section B. Question no. 8 (Section C) is compulsory.

 

Section A

Q-1. Determine the elasticity of demand when the price falls from 136 to 119, given the demand function

P = 200 Q² [20]

 

Q-2. Find the slope of the straight line passing through

(a) A (1, 2) and B (3, 4)

(b) A (1, 2) and C (4, 1)

(c) A (1, 2) and D (5, 2) [20]

 

Q-3. If the consumption function is

C = 0.01 Y² + 0.2Y + 50

Calculate MPC and MPS when Y = 30. [20]

 

 

Section B

Q-4. Given the demand function

P = 50 2Q

Find the elasticity when the price is 30. Is demand inelastic, unit elastic or elastic at this price? [20]

 

Q-5. If the demand function is

P = 120 3Q, find an expression for TR in terms of Q.

Find the value of MR at Q = 10 using

(i) Differentiation

(ii) The 1 unit increase approach [20]

 

Q-6. If the production function is

Q = 300 L 4L

where Q denotes output and L denotes the size of the workforce, calculate the value of MPL when

(a) L = 1 (b) L = 9 (c) L = 100 (d) L = 2500

And discuss the implications of these results. [20]

 

Q-7. If the total revenue function of a good is given by

100Q Q2

Write down an expression for the marginal revenue function. If the current demand is 60, estimate the change in the value of TR due to a 2 unit increase in Q. [20]

 

Section C

Q-8. If the average cost function of a good is

AC = 2Q + 6 + 13/Q

Find an expression for MC. If the current output is 15, estimate the effect on TC of a 3 unit decrease in Q. [20]