Which of the following functions have unit elasticity at P = 6?

a.Supply: Qs= 5 P

b.Demand: log Qd= 100 – 3 log P

c.Demand: Qd= 24 – 2 P

d.Demand: Qd= 5/P

 

 

 

For the function Q = AKaLbwhich of the following statements are NOT true?

a.Marginal Product of Capital (MPK) = aQ / K

b.Marginal rate of substitution of capital for labour (MRS) = |dK / dL

c.dQ/dL = AbKaLb-1

d.Marginal Product of Labour (MPL) = AaKa-1L

 

 

 

A profit-maximizing monopoly firm with a demand curve P = 50 ? Q is a perfect price discriminator. If it has marginal costs of N 10/unit and fixed costs of N 30, it will produce _____ units of output and will make______ profit.

a.40; N 770

b.40; N 70

c.20; N 370

d.40; N 400

 

 

 

Which of the following functions are NOT homogeneous of degree 1 (i.e. linear homogeneous)?

a.Q = (K2+ 2KL + L2)1/2

b.Q = 20 KaL1-

c.Q = 100 K1/4 L3/4

d.Q = K2+ 2KL + L2

 

 

 

A price discriminating Monopolist is considered more efficient than a single prices monopolist because:

a.a price discriminating Monopolist can produce it\’s output at a lower cost

b.a price discriminating Monopolist knows its consumers better

c.a price discriminating Monopolist can set prices more efficiently

d.a price discriminating Monopolist produces a higher level of output

 

 

A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost and price is:

a.less than average variable cost

b.greater than average total cost

c.greater than average variable cost

d.less than average total cost

 

 

 

One difference between perfect competition and monopolistic competition is that:

a.In perfect competition, the products are slightly differentiated between firms

b.There are a smaller number of firms in perfectly competitive industries

c.There are a larger number of firms in monopolistic competition.

 

 

If the price elasticity of demand for wine is estimated to be -.6, then a 20% increase in price of wine will lead to ………………….in quantity demanded of wine at that price

a.19.6% increase

b.12% decrease

c.12% increase

d.20.6% decrease

 

 

 

or the demand function Q1= 10 – 9 P1+ P2+ 0.01Y which of the following statements are true?

a.dQ1/ dP1= -10

b.dQ1/ dP1= -9 + P2+ 0.01Y

c.dQ1/ dP2= P2

d.dQ1/ dY = 0.01

 

 

f(x) = 3×3- 4×2+ 10 implies

a.f \'(x) = 9×2- 8x + 10

b.f \'(2) = 10

c.f(1) = 10

 

 

 

In a monopoly, marginal revenue is:

a.initially less than AR then more than AR

b.more than AR

c.less than AR

d.equal to AR

 

 

 

A ____ is a point at which a function is at a relative maximum or minimum

a.plateau

b.relative extremum

c.inflection

d.critical value

 

 

If the demand facing a monopolist is P = 100 ? 10Q and marginal cost is constant at 20, then the profit maximizing price and quantity for this monopolist are:

a.P = 90 and Q = 10

b.P = 60 and Q = 4

c.P = 4 and Q = 60

d.P = 20 and Q = 8

 

 

 

Optimum level of output for a perfectly competitive firm is given by the point:

a.MR exceeds MC by the greater amount

b.MR = MC and MC is rising

c.MR = MC

d.MR = AC

 

 

In Cobb Douglas Production of functions, the elasticity of Substitutions is

a.equal to one

b.ess than one

c.greater than one

d.None of these

 

 

 

 

The process of finding relative maximum or minimum of a function is known as :

 

a.optimization

b.minimisation

c.any of these

d.maximisation

 

 

When we optimise a function, with the first order derivative equal to ___ and the second order derivative ___ the function is at a relative minimum.

a.> 0, 0

b.0, 0

c.0, > 0

d.0, < 0

 

 

 

In optimisation, with the first order derivative equal to ___ and the second order derivative ___ the function is at a maximum.

a.> 0, 0

b.0, 0

c.0, > 0

d.0, < 0.

 

 

In an input-output matrix, the principal diagonal of this matrix represents the amount of input each industry takes from ___output.

a.household sector\’s

b.government sector\’s

c.its own output.

d.other industry\’s

 

 

Given the consumption function C = a + bY, the slope \’b\’ represents:

a.Saving

b.autonomous consumption

c.MPC.

d.MPS

 

The given function f (x) = ax + b, is an example of ____ function:

a.linear

b.quadratic

C.crational

d.polynomial

 

 

 

The cost per output is given by C = 2x + 27. Then the marginal cost when x = 5 is:

a.47

b.2

c.27

 

For a total cost function TC = 1.5Q2 + 4Q + 46, MC is :

a.1.5Q

b.1.5Q + 4

c.4Q + 46

d.1.5Q + 4 +

 

 

Given TR = 10x, TC = 5x+2, profit function is :

a.5x + 2

 

Given a total utility function, Marginal utility is obtained by finding ______

a.Second derivative

b.Integral

c.Coefficient

d.First derivative

 

 

 

For equilibrium market, the condition is____

a.Demand > supply

b.demand = supply

c.None of these

d.demand <supply

 

 

The Price elasticity of demand for a product is 1.5 and its MR = 8, find its price:

a.24

b.12

c.53

d.16

 

 

____ indicates what proportion of the increased income will be saved.

a.MPI

b.MPS

c.MPC

d.GDP

 

 

 

Given a consumption function C = 250 + 0.75Yd, autonomous consumption is ____

a.25

b.0.75

c.-0.75