All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – I - Question Paper
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(a) Rs.14.4 thousand
(b) Rs.13.2 thousand
(c) Rs.15.6 thousand
(d) Rs.16.4 thousand
(e) Rs.17.6 thousand. (2marks)
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53.A firm operating under perfect competition has the long run avg. cost function provided as:
LAC = 150 – 1,250Q + 25Q2.
If the existing market price of the commodity produced by the firm is Rs.150, what is the total revenue
of the firm at optimum level of output?
(a) Rs.3,050
(b) Rs.3,550
(c) Rs.3,750
(d) Rs.3,820
(e) Rs.3,980. (2marks)
54.There are 100 firms with identical cost functions operating in a perfectly competitive industry with total
cost function estimated as:
TC = 100 – 100Q + 5Q2.
The demand function for the industry is estimated to be:
Qd = 6,000 – 490P.
What is equilibrium price of the product?
(a) Rs. 9.00
(b) Rs. 9.50
(c) Rs.10.00
(d) Rs.11.50
(e) Rs. 9.75. (2marks)
55.The avg. Variable Cost (AVC) function of a firm operating in a perfectly competitive market is
estimated as:
AVC = 2,800 – 240Q + 8Q2.
What is the price beneath which the firm has to shut-down its operations in the short run?
(a) Rs.1,100
(b) Rs.1,000
(c) Rs.1,200
(d) Rs.1,300
(e) Rs. 900. (2marks)
56.The industry supply function of a perfectly competitive industry is estimated as
Qs = 200 + 4P.
An individual firm operating in that industry has total cost function provided as follows:
TC = 1,200 + 600Q – 50Q2 + Q3.
The profit maximizing output for the firm is 150 units. What is the total supply for the industry?
(a) 2,11,600 units
(b) 2,12,000 units
(c) 2,12,600 units
(d) 2,11,000 units
(e) 2,10,000 units. (2marks)
57.Which of the subsequent is false regarding Monopoly?
(a) The firm operating in monopoly can either fix the price or control the supply of product
(b) The demand curve of the market is represented by demand curve of the firm
(c) The demand for and supply of the product produced by the firm are identical when marginal
revenue of the firm is equal to its marginal cost
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