Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Economics (CFA520): - Question Paper

workflow. The vertical distance ranging from total variable cost and total cost of Lixan Imaging is equal to
(1 mark)
(a) Marginal cost
(b) avg. variable cost
(c) Total fixed cost
(d) avg. fixed cost
(e) avg. total cost.
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22. The total revenue and total cost functions of Nike Shoe Company are
TR = 400Q – , TC = 600 +70Q + Q2
What is the profit maximizing output for the firm?
(2 marks)
(a) 100 units
(b) 110 units
(c) 140 units
(d) 180 units
(e) 200 units.
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23. Mr. Akash, the manager of ‘The Fast Trak Corp.’, a shoe manufacturing company develops dozens of
dramatically various methods of making shoes, which reduces the Fast Trak Corp.’s variable costs of
producing shoes. The Fast Trak Corp. faces the subsequent avg. variable cost function:
AVC = 300 – 10Q + 0.5Q2
Fixed costs are Rs.150. What is the minimum possible avg. variable cost?
(2 marks)
(a) Rs.225
(b) Rs.250
(c) Rs.275
(d) Rs.300
(e) Rs.325.
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24. In perfect competition, the long run equilibrium price is equal to
I. Marginal Revenue.
II. avg. Cost.
III. Marginal Cost.
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IV. avg. Revenue.
(1 mark)
(a) Both (I) and (III) above
(b) (I), (II) and (III) above
(c) (I), (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
25. The horizontal demand curve for a firm is 1 of the characteristic features of
(1 mark)
(a) Oligopoly
(b) Monopoly
(c) Monopolistic competition
(d) Perfect competition
(e) Duopoly.
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26. In the long run, which of the subsequent is actual of a firm in a perfectly competitive industry?
(1 mark)
(a) It operates at its minimum avg. cost
(b) The price is more than the avg. fixed cost
(c) The marginal cost is greater than marginal revenue

Earning:   Approval pending.