ME Tutorial Evaluation 3 C

Name: _____________________ Er.No.:________________

1 2 3 4 5 6 7 8 9

1. Demand forecasting refers to an estimation of 7. Which of the following is most likely to result in
a. Trends in the market. economies of scope?
b. Future demand for the product. A. The production of soft drinks and soda
c. Most likely future demand for a product. bottles.
d. Precise demand for a product at a future date. B. The production of cars and trucks.
C. The production of computer hardware and
2. A tabular representation of different quantities of a computer software.
commodity supplied at varying prices is called D. Producing the same brand of wine from two
a. Supply schedule different vineyards.
b. Supply series.
c. Supply table. 8. Suppose that a firms total cost is given by the
d. Supply pattern.. equation TC = 500 + 72Q - 44Q2 + 2Q3, where Q
represents total output. AVC is minimized at what
3. Diminishing marginal return implies
output level?
a. Decreasing average fixed costs
A. 6.5 units.
b. Decreasing average variable costs B. 11 units.
c. Increasing marginal costs
C. 15 units.
d. Decreasing marginal cost
D. 16.5 units.
4. Which of the following statement is incorrect? When
9. Consider the Cobb-Douglas production function
a producer increases the Qty of variable input while
Q = 33K0.33L0.66, where K is capital and L is labor. This
keeping fixed factors constant
production function exhibits:
a. Marginal product increases in the beginning
A. Increasing returns to scale.
b. Marginal product become constant in the middle
B. Constant returns to scale.
c. Marginal product diminishes at the end
C. Decreasing returns to scale.
d. Marginal product reaches the highest point
D. Zero returns to scale.
5. The marginal product of a variable input is best E. Cannot be determined from the information
describe as provided.
a. The addition output resulting from a one unit
increase in both the variable and fixed inputs
b. Total product divided by the number of units of
variable input
c. The ratio of the amount of the variable input that is
being used to the amount of the fixed input that is
being used
d. The addition output resulting from a one unit
increase in the variable input

6. Average total cost (ATC) falls when ATC is _______

marginal cost (MC):
A. greater than
B. less than
C. equal to
D. Cannot be answered without further knowledge