All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – I - Question Paper
Friday, 01 February 2013 10:45Web
Page 9 of 18
47.Which of the subsequent statements is not actual about a ‘Price taking firm’?
(a) Its AR is always constant
(b) It achieves equilibrium in short run when its MR equals its MC
(c) It has a U-shaped avg. cost curve
(d) It has the freedom to exit the industry if it is incurring losses
(e) Its MR is always less than its AR. (1 mark)
9
48.The industry demand curve in perfect competition is
(a) A horizontal straight line
(b) A vertical straight line
(c) U-Shaped
(d) A downward sloping straight line
(e) An upward rising straight line. (1 mark)
49.In a freely competitive market mechanism, a simultaneous equilibrium of production and consumption
can be achieved when there is
(a) Efficient allocation of resource among firms
(b) Efficient allocation of resource among industries
(c) Efficient distribution of goods produced among consumers
(d) Efficient combination of products
(e) Efficient coordination ranging from firm and industry. (1 mark)
50.Which of the subsequent is not actual about taxation in perfect competition?
(a) The imposition of lump sum tax will shift both the AFC and the ATC curves
(b) The marginal cost curve is not affected by imposition of lump sum tax
(c) The effect of profit tax is identical as that of a lump sum tax
(d) Imposition of specific tax will affect the MC curve of the firm
(e) If the market supply curve is more elastic, then the burden of specific tax will be more on
seller than on buyer. (1 mark)
51.In perfect competition, the shape of total revenue curve of a firm is
(a) Straight line starting from origin
(b) U-shaped
(c) L-shaped
(d) Rectangular hyperbola
(e) Horizontal straight line. (1 mark)
52.Refer to the subsequent table:
(Rs. in thousands)
Output
(units)
Marginal
Revenue/Price
Average
Total Cost
1 20 68.00
2 20 37.00
3 20 26.00
4 20 20.76
5 20 17.80
6 20 17.60
7 20 15.72
8 20 16.24
9 20 18.00
10 20 21.00
The above table indicates the marginal approach of profit computation in a perfectly competitive market.
| Earning: Approval pending. |
