# June 2015 - Paper 3

1:

The demand function for commodity X, is QD=300-20P; where P is the price in rupees per unit and Qis the quantity demanded in units per period. Which of the following is the price level at which total revenue of a firm facing this demand function is maximized ?

 A. 8.0 B. 7.5 C. 10.5 D. 12.5 Answer Report Discuss Option: B Explanation : Click on Discuss to view users comments. Write your comments here:
2:

Match the production functions List - I with the return to scale List - II.

 List – I (Production function) List – II (Return to scale) (a) Q = 10 K0.5L0.4E0.15M0.1 (i) increasing (b) Q = 12 K0.5L0.5 (ii) constant (c) Q = 100 K + 15 L (iii) decreasing (d) Q = 40 K0.3L0.5

 A. (ii) (ii) (i) (i) B. (i) (i) (ii) (ii) C. (ii) (i) (i) (iii) D. (i) (ii) (ii) (iii) Answer Report Discuss Option: D Explanation : Click on Discuss to view users comments. Write your comments here:
3:

It costs a firm Rs 90 per unit to produce product A, and Rs 60 per unit to produce B individually. If the firm can produce both products together at Rs 160 per unit of product A and B, this exhibits signs of:

 A. economies of scope B. diseconomies of scale C. diseconomies of scope D. economies of scale Answer Report Discuss Option: C Explanation : Click on Discuss to view users comments. Write your comments here:
4:

In the context of Prisoner's dilemma, which one of the following is correct?

 A. rational choices can lead to bad outcomes B. rational choices can lead to good outcomes C. co-operation can lead to sub - optimal results D. none of the above Answer Report Discuss Option: A Explanation : Click on Discuss to view users comments. Write your comments here:
5:

Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.

 A. Target price→penetration prices→value - based price→limit price→niche price B. Penetration price→limit price→value - based price→target price→niche price C. Penetration price→target price→limit prices→value - based price→niche price D. Penetration price→niche price→target price→limit price→value - based price Answer Report Discuss Option: A Explanation : Click on Discuss to view users comments. Write your comments here: