Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A MODEL MB0026 ECONOMICS SMU - Question Paper

8. The management will have to decide upon the volume to be supplied and the volume to be held back based upon
a. Position of the firm.
b. Price.
c. Needs of the consumer.
d. Policy of the firm.
.

9. The market supply schedule helps the management to know
a. The volume to be produced.
b. The volume to be supplied & the volume to be withheld.
c. The volume to be supplied & the price to be charged.
d. The volume to be produced & the volume to be withheld.

10. Supply schedule of a firm indicates volumes of a commodity
a. Offered for sale at varying prices.
b. Produced at varying prices.
c. Planned at varying prices.
d. That can be delivered at varying prices.

11. Diminishing returns occur
a. When the qty of the fixed input is increased and return to the variable input falls
b. when the size of the plant is increased in the long run
c. when units of a variable input are added to a fixed input and marginal
product falls
d. when units of a variable input are added to a fixed input and total product falls.
.

12. If a production function is homogenous of degree 1 it implies that
a. There is decreasing return to scale
b. There is Increasing return to scale
c. There is constant return to scale
d. None of these

13. Profit maximizing model is of the view that the success a firm depends on
a. sales maximization
b. Market share expansion
c. profit maximization
d. Growth maximization

14. In a perfectly competitive market a profit maximizing firm is
a. A price-maker
b. A price- taker
c. A price-searcher
d. A price avoider

15. Suppose a firm is selling five units of the output at the price of Rs.15 per unit. Now if it wants to sell six units instead of five units and there by the price of the product falls to Rs.14 then the marginal revenue will be
a. Rs.14.
b Rs.10.
c. Rs.15.
d. Rs.9.
.

16. An oligopolist facing a kinked demand curve if decreases his price after the kink he may not be able to make a good gain because a demand curve will be
.
a. Vertical.
b. Positively sloping.
c. More inelastic.
d. More elastic.

17. Administered prices are helpful in

Earning:   Approval pending.