All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – I - Question Paper
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(a) 100 units
(b) 190 units
(c) 198 units
(d) 199 units
(e) 1,000 units. (2marks)
30.Which of the subsequent production functions exhibit constant returns to scale?
I. Q = K1/2 + L1/2.
II. Q = 3K + 4L.
III. Q = 4K1/2 L1/2.
IV. Q = K1/2 L2/3.
(a) Both (I) and (II) above
(b) Both (II) and (III) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) (I), (III) and (IV) above. (2marks)
31.If the production function is Q = 10K0.3 L0.3, what is the marginal rate of tech. substitution of labor
for capital?
(a)
(b)
(c)
0.3
(d)
0.3
(e) K – L. (2marks)
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32.Consider the subsequent total cost function.
TC = 1,200 + 150Q – 25Q2 + 30Q3
Which of the subsequent statements is/are false?
I. Fixed cost is Rs.1,200.
II. avg. variable cost function is + 150 – 25Q + 30Q2.
III. Marginal cost function is 1,200 + 150 – 25Q + 90Q2.
IV. Variable cost function is 150Q – 25Q2 + 30Q3.
V. avg. fixed cost is .
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (III) and (IV) above
(e) (II), (III) and (V) above. (1 mark)
33.The shape of fixed cost curve is
(a) Upward sloping straight line
(b) U-shape
(c) Vertical straight line
(d) Horizontal straight line
(e) Downward sloping straight line. (1 mark)
34.Which of the subsequent is actual when firm’s output is zero in the short run?
(a) Its total cost will be zero
(b) Its variable cost will be positive
(c) Its fixed cost will be positive
(d) Its avg. cost will be zero
(e) Marginal cost will be negative. (1 mark)
| Earning: Approval pending. |
