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.
AC is always higher than MC.
AC is always lower than MC.
AC is lower than MC up to a certain level and then is higher than MC.
None of the above is true.
D. None of the above is true.
1994
1992
1993
1995
0
1
2
3
1991
1992
1993
1990 1991
7.3
7.7
7.5
7.9
Rs. 2,500
Rs. 3,000
Rs. 2,000
Rs. 4,125
August
October
November
December
Potassium Chlorate at 80°C.
Potassium Chloride at 35°C.
Potassium Nitrate at 39°C.
Sodium Chloride at 85°C.
September
July
March
May
B
A
D
C
Theoretical
Religious
Economic
Political
110
130
150
160
1997
2000
1999
1996
A
B
C
D
MC in an increasing function of producing quantity.
MC is a decreasing function of production quantity.
Initially MC is a decreasing function of production quantity, attains a minimum and then it is an increasing function of production quantity.
None of the above
2,90,000
2,00,000
1,50,000
Cannot be determined
Rs. 0.5 Crore
Rs. 1.0 Crore
Rs. 2.0 Crore
Rs. 3.0 Crore
0
1
2
3
20500
21000
10,000
None of these
50
45
40
35
1998-99
1997-98
1994-95
1996-97
March
September
July
May
Rs. 441
Rs. 395
Rs. 480
Rs. 545
Profitability is non-decreasing during the five years from 1994-95 to 1998-99.
Profitability is non-increasing during the five years from 1994-95 to 1998-99.
Profitability remained constant during the five years from 1994-95 to 1998-99.
None of the above
5
10
15
None
Second month
Third month
Fourth month
Never
Geeta
Seeta
Ram
Shyam
Data insufficient
17 : 03
16 : 41
16 : 58
A has 4 possible total score
D has 4 possible total score
B has 2 possible total score
D has 3 possible total score
Pearl
Ruby
Topaz
Sapphire
1994
1995
1992
1993