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Direction.

Directions: Answer the questions based on the following information:
ABC Ltd. Produces widgets for which the demand is unlimited and they can sell all of their production. The graph below describes the monthly variable costs incurred by the company as a function of the quantity produced. In addition, operating the plant for one shift results in a fixed monthly cost of Rs. 800. Fixed monthly costs for second shift operation are estimated at Rs. 1200. Each shift operation provides capacity for producing 30 widgets per month.

Note: Average unit cost, AC = Total monthly cost / monthly production, and Marginal cost, MC is the rate of change in total cost for unit change in quantity produced.

What is the correct answer?

4

For monthly production level in the range of 0 to 30 units,

A. AC is always higher than MC.

B. AC is always lower than MC.

C. AC is lower than MC up to a certain level and then is higher than MC.

D. None of the above is true.

Correct Answer :

D. None of the above is true.


Average cost for 1 unit = 850
Average cost for 6 units = 1100/6 = 183
Average cost for 11 units = 1500/11 = 137
Average cost for 16 units = 1800/16 = 112
Average cost for 21 units = 2200/21 < 100
We can observe AC is higher than MC till a certain level and then decreases

Related Questions

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4

In which of the following years, there was the maximum net growth in car sales as compared to its earlier years?

A. 1994

B. 1992

C. 1993

D. 1995

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4

How many restaurants performed better than Sarson in Take away and better than Dhaba in Dine In?

A. 0

B. 1

C. 2

D. 3

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4

In which year is the profit per rupee of equity the highest?

A. 1991

B. 1992

C. 1993

D. 1990 1991

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4

What was the difference between the average sales index and the average cost index?

A. 7.3

B. 7.7

C. 7.5

D. 7.9

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4

The maximum increase in price per cubic metre for any product between two years was

A. Rs. 2,500

B. Rs. 3,000

C. Rs. 2,000

D. Rs. 4,125

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4

The growth rate is very marginal during the month of :

A. August

B. October

C. November

D. December

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4

Which of the following salts has greatest solubility?

A. Potassium Chlorate at 80°C.

B. Potassium Chloride at 35°C.

C. Potassium Nitrate at 39°C.

D. Sodium Chloride at 85°C.

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4

Which month records the highest profit?

A. September

B. July

C. March

D. May

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4

Which group could get maximum percentage increase in the score in any stage when compared to previous stage?

A. B

B. A

C. D

D. C

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4

In which values score, there exists maximum difference between average female profiles and personal profile?

A. Theoretical

B. Religious

C. Economic

D. Political

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4

ABC Ltd. is considering increasing the production level. What is the approximate marginal cost of increasing production from its July level of 40 units?

A. 110

B. 130

C. 150

D. 160

What is the correct answer?

4

In which of the following years was the production of motorbikes exactly 40% of the total production of automobiles in that years?

A. 1997

B. 2000

C. 1999

D. 1996

What is the correct answer?

4

Which share showed the greatest percentage increase in market value in any month during the entire period?

A. A

B. B

C. C

D. D

What is the correct answer?

4

From the data provided it can be inferred that, for production levels in the range of 0 to 60 units,

A. MC in an increasing function of producing quantity.

B. MC is a decreasing function of production quantity.

C. Initially MC is a decreasing function of production quantity, attains a minimum and then it is an increasing function of production quantity.

D. None of the above

What is the correct answer?

4

If the profit earned by the company in the year 2008 was 90,000, what was the income of the company in that year?

A. 2,90,000

B. 2,00,000

C. 1,50,000

D. Cannot be determined

What is the correct answer?

4

What was the maximum value of spending on CSR activities in the period 2004 2009?

A. Rs. 0.5 Crore

B. Rs. 1.0 Crore

C. Rs. 2.0 Crore

D. Rs. 3.0 Crore

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4

How many of the restaurant definitely performed better than Dhaba in both Take away and Dine In?

A. 0

B. 1

C. 2

D. 3

What is the correct answer?

4

What is the difference between the total number of students passing out from college A and the total number of students passing out from college E?

A. 20500

B. 21000

C. 10,000

D. None of these

What is the correct answer?

4

The number of males passing out from colleges A and B together is what percent of the number of females passing out from colleges C and D together?

A. 50

B. 45

C. 40

D. 35

What is the correct answer?

4

Defining profitability as the ratio of net profit to sales, IVP Ltd. recorded the highest profitability in

A. 1998-99

B. 1997-98

C. 1994-95

D. 1996-97

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4

In which month is the percentage increase in sales two months before, the highest?

A. March

B. September

C. July

D. May

What is the correct answer?

4

If the profit was Rs. 600 in 1993, then what was the profit in 1990?

A. Rs. 441

B. Rs. 395

C. Rs. 480

D. Rs. 545

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4

With profitability as defined in question 137, it can be concluded that

A. Profitability is non-decreasing during the five years from 1994-95 to 1998-99.

B. Profitability is non-increasing during the five years from 1994-95 to 1998-99.

C. Profitability remained constant during the five years from 1994-95 to 1998-99.

D. None of the above

What is the correct answer?

4

An individual decides to sell 1 share of C and 1 share of D to buy 1 share of A at the end of the month. What can be the individuals greatest gain from this decision, due to share value changes?

A. 5

B. 10

C. 15

D. None

What is the correct answer?

4

After which month did Seetas rate of growth start to decline?

A. Second month

B. Third month

C. Fourth month

D. Never

What is the correct answer?

4

Who grew at the fastest rate in the first two months of life?

A. Geeta

B. Seeta

C. Ram

D. Shyam

What is the correct answer?

4

If the train stops at each city for 30% more time that what it is at the moment, then at what time will it reach the city H after departing from city A as per schedule?

A. Data insufficient

B. 17 : 03

C. 16 : 41

D. 16 : 58

What is the correct answer?

4

If C has achieved the lowest possible score then-

A. A has 4 possible total score

B. D has 4 possible total score

C. B has 2 possible total score

D. D has 3 possible total score

What is the correct answer?

4

The performance for which of the following houses is the best?

A. Pearl

B. Ruby

C. Topaz

D. Sapphire

What is the correct answer?

4

Which year registered the maximum sales turnover?

A. 1994

B. 1995

C. 1992

D. 1993