Question:

In linear programming, _____are expressed as inequalities, rather than equalities.

A.

the technical constraints

B.

objective functions

C.

dual

D.

primal

Answer» a. the technical constraints

Question:

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

Answer» b. relative extremum

Question:

For a utility function u = xy + 3x + 4y, marginal utility of good x is:

A.

xy + 3x + 4y

B.

y + 3

C.

x + 4

D.

y + 3x

Answer» b. y + 3

Question:

The slope of ___curve will be positive if and only if the marginal cost curve lies above theAC curve.

A.

AC

B.

MC

C.

ATC

D.

MP

Answer» a. AC

Question:

_____ measures the change in TP due to a one unit change in the quantity of labour used:

A.

MPC

B.

MPS

C.

MPI

D.

MPPL

Answer» d. MPPL

Question:

In a monopoly, marginal revenue is:

A.

equal to AR

B.

less than AR

C.

more than AR

D.

initially less than AR then more than AR

Answer» b. less than AR

Question:

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

A.

P = 60 and Q = 4

B.

P = 20 and Q = 8

C.

P = 90 and Q = 10

D.

P = 4 and Q = 60

Answer» a. P = 60 and Q = 4

Question:

The value of Lagrange multiplier λ gives the approximate change in the objective functioncaused by a small change in the:

A.

constant of the constraint

B.

objective function

C.

variables in the constraint

D.

any of these

Answer» a. constant of the constraint

Question:

A profit-maximizing monopoly firm with a demand curve P = 50 − Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce_____ units of output and will make______ profit.

A.

40; Rs. 400

B.

40; Rs. 770

C.

20; Rs. 370

D.

20; Rs. 400

Answer» b. 40; Rs. 770

Question:

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

A.

12

B.

24

C.

53

D.

16

Answer» b. 24