All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – I - Question Paper
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35.Which of the subsequent can be considered as long run cost function(s)?
I. C = 20 + 3Q + 0.25Q2.
II. C = 200Q + 0.5Q2.
III. C = 100 + Q – 2Q2.
IV. C = 10Q + 150Q2.
(a) Only (I) above
(b) Only (III) above
(c) Both (II) and (III) above
(d) Both (II) and (IV) above
(e) Both (I) and (III) above. (1 mark)
36.The total cost is a function of
(a) The price of input
(b) The number of various inputs used
(c) The output to be produced
(d) The demand of the product
(e) The nature of the product. (1 mark)
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37.Which of the subsequent statements is actual with regard to cost curves in the short run?
(a) The marginal cost curve intersects the avg. variable cost curve at its least point and the
avg. total cost curve at its highest point
(b) The marginal cost curve intersects the avg. variable cost curve at its highest point and the
avg. total cost curve at its least point
(c) The marginal cost curve intersects both the avg. variable cost curve and the avg. total
cost curve at their least points
(d) The marginal cost curve intersects both the avg. variable cost curve and the avg. total
cost curve at their highest points
(e) The marginal cost curve never intersects the avg. variable cost curve and the avg. total
cost curve. (1 mark)
38.Which of the subsequent statements is not true?
(a) The long run avg. cost is determined by economies of scales
(b) When increase in production of 1 product leads to reduce in cost of production of a different
product, it is termed as economies of scope
(c) Pecuniary economies of scale accrue to a firm when the firm gets discount due to large scale
operation
(d) Economies of scales are classified into internal and external economies of scales
(e) Real economies of scale can be achieved through the increase in the volume of inputs. (1 mark)
39.For a firm, the avg. cost function is estimated as
AC = + 30 + 6Q
What is total variable cost for the firm at an output of 10 units?
| Earning: Approval pending. |
