MauryaHub PYQ Practice

ms3033_2026T2_Q1_NA.pdf

Managerial Economics · Quiz 1 · May 2026

← Course papers · Start practice / exam

Questions and published explanations below are available without starting a test. Some questions may not have a published solution yet.

Question 2 MCQ · 1.0 marks

[[IMAGE:6e1829a757a495a9_2_2]]
Source diagram or notation
  1. Both MPL and MPK are constant
  2. MPL is increasing but MPK is constant
  3. MPL is decreasing and MPK is constant
  4. Both MPL and MPK are decreasing

A published solution is not available for this question yet.

Question 3 MCQ · 1.0 marks

The Cobb-Douglas production function F(K,L)=K\(^{p}\)L\(^{q}\)
  1. Never exhibits decreasing returns to scale
  2. Shows constant returns to scale if p+q=1
  3. Shows increasing returns to scale if p+q<1
  4. Has constant marginal product of capital

A published solution is not available for this question yet.

Question 4 MCQ · 1.0 marks

The marginal product of capital (MPK) is defined as
  1. a firm’s total output divided by total capital input
  2. the extra output produced by employing one more unit of capital while allowing other inputs to vary
  3. the extra output produced by employing one more unit of capital while holding other inputs constant
  4. the extra output produced by employing one more unit of labour while holding labour input constant

A published solution is not available for this question yet.

Question 5 MCQ · 1.0 marks

The average product of labour (APL) is defined as
  1. a firm’s total output divided by total labour input
  2. the extra output produced by employing one more unit of capital while allowing other inputs to vary
  3. the extra output produced by employing one more unit of capital while holding other inputs constant
  4. the extra output produced by employing one more unit of labour while holding labour input constant

A published solution is not available for this question yet.

Question 6 MCQ · 1.0 marks

Suppose that you own and manage your own business and you are contemplating whether you should continue to operate over the next year or go out of business. If you remain in business, you will need to spend £100,000 to hire the services of workers and £80,000 to purchase supplies; if you go out of business, you will not need to incur these expenses. In addition, the business will require 80 hours of your time every week. The best alternative to managing your own business is to work the same number of hours in a corporation for an income of £75,000 per year. Based on the above data, answer the given subquestions.
What is the explicit cost?
  1. 75,000
  2. 180,000
  3. 255,000
  4. 100,000

A published solution is not available for this question yet.

Question 7 MCQ · 1.0 marks

Suppose that you own and manage your own business and you are contemplating whether you should continue to operate over the next year or go out of business. If you remain in business, you will need to spend £100,000 to hire the services of workers and £80,000 to purchase supplies; if you go out of business, you will not need to incur these expenses. In addition, the business will require 80 hours of your time every week. The best alternative to managing your own business is to work the same number of hours in a corporation for an income of £75,000 per year. Based on the above data, answer the given subquestions.
What is the implicit cost?
  1. 75,000
  2. 180,000
  3. 255,000
  4. 100,000

A published solution is not available for this question yet.

Question 8 MCQ · 2.0 marks

Suppose that you own and manage your own business and you are contemplating whether you should continue to operate over the next year or go out of business. If you remain in business, you will need to spend £100,000 to hire the services of workers and £80,000 to purchase supplies; if you go out of business, you will not need to incur these expenses. In addition, the business will require 80 hours of your time every week. The best alternative to managing your own business is to work the same number of hours in a corporation for an income of £75,000 per year. Based on the above data, answer the given subquestions.
What is the opportunity cost of continuing the business over the next year
  1. 75,000
  2. 180,000
  3. 255,000
  4. 105,000

A published solution is not available for this question yet.

Question 9 MCQ · 1.0 marks

[[IMAGE:6e1829a757a495a9_4_3]] Based on the above data, answer the given subquestions.
What is the marginal product of labour (MPL)?
Source diagram or notation
  1. (L\(^{0.5}\)+ K\(^{0.5}\))L
  2. (L\(^{0.5}\)+ K\(^{0.5}\))L\(^{-0.5}\)
  3. (L\(^{0.5}\)+ K\(^{0.5}\))K\(^{-0.5}\)
  4. (L\(^{0.5}\)+ K\(^{0.5}\))K

A published solution is not available for this question yet.

Question 10 MCQ · 1.0 marks

[[IMAGE:6e1829a757a495a9_4_3]] Based on the above data, answer the given subquestions.
What is marginal product of capital (MPK)?
Source diagram or notation
  1. (L\(^{0.5}\)+ K\(^{0.5}\))L\(^{-0.5}\)
  2. (L\(^{0.5}\)+ K\(^{0.5}\))L
  3. (L\(^{0.5}\)+ K\(^{0.5}\))K\(^{-0.5}\)
  4. (L\(^{0.5}\)+ K\(^{0.5}\))K

A published solution is not available for this question yet.

Question 11 NAT · 2.0 marks

[[IMAGE:6e1829a757a495a9_4_3]] Based on the above data, answer the given subquestions.
What is the cost minimizing combination of labour and capital for an airframe manufacturer that wants to produce 121,000 airframes? L*= __________
Source diagram or notation

    A published solution is not available for this question yet.

    Question 12 NAT · 2.0 marks

    [[IMAGE:6e1829a757a495a9_4_3]] Based on the above data, answer the given subquestions.
    What is the cost minimizing combination of labour and capital for an airframe manufacturer that wants to produce 121,000 airframes? K*= ___________
    Source diagram or notation

      A published solution is not available for this question yet.

      Question 13 NAT · 1.0 marks

      [[IMAGE:6e1829a757a495a9_4_3]] Based on the above data, answer the given subquestions.
      What will be the minimum cost for this combination of Labour (L) and capital (K) ________
      Source diagram or notation

        A published solution is not available for this question yet.

        Question 14 MCQ · 1.0 marks

        Consider two goods coconut and fish with prices Pc = 10 and Pf = 40. Robin has an income I= 1000 and he consumes only these two goods. With the help of the plot of his budget line taking coconut on the Y-axis, answer the given subquestions.
        The slope of the budget line is
        1. -4
        2. +4
        3. -1/4
        4. +1/4

        A published solution is not available for this question yet.

        Question 15 MCQ · 1.0 marks

        Consider two goods coconut and fish with prices Pc = 10 and Pf = 40. Robin has an income I= 1000 and he consumes only these two goods. With the help of the plot of his budget line taking coconut on the Y-axis, answer the given subquestions.
        Intercepts on the axis are
        1. 25 on X-axis and 100 on Y-axis
        2. 100 on X-axis and 25 on Y-axis
        3. 50 on X-axis and 200 on Y-axis
        4. 200 on X-axis and 50 on Y-axis

        A published solution is not available for this question yet.

        Question 16 MCQ · 1.0 marks

        Consider two goods coconut and fish with prices Pc = 10 and Pf = 40. Robin has an income I= 1000 and he consumes only these two goods. With the help of the plot of his budget line taking coconut on the Y-axis, answer the given subquestions.
        If keeping income unchanged, price of the coconut is halved, what will be the new slope of the budget line
        1. -2
        2. +2
        3. -8
        4. +8

        A published solution is not available for this question yet.

        Question 17 MCQ · 1.0 marks

        Consider two goods coconut and fish with prices Pc = 10 and Pf = 40. Robin has an income I= 1000 and he consumes only these two goods. With the help of the plot of his budget line taking coconut on the Y-axis, answer the given subquestions.
        New intercepts on the axis are
        1. 50 on X-axis and 50 on Y-axis
        2. 100 on X-axis and 50 on Y-axis
        3. 25 on X-axis and 200 on Y-axis
        4. 200 on X-axis and 25 on Y-axis

        A published solution is not available for this question yet.

        Question 18 MCQ · 1.0 marks

        Consider two goods coconut and fish with prices Pc = 10 and Pf = 40. Robin has an income I= 1000 and he consumes only these two goods. With the help of the plot of his budget line taking coconut on the Y-axis, answer the given subquestions.
        If income is halved keeping the original prices unchanged
        1. Slope remains same and both intercepts are doubled
        2. Slope remains same and both intercepts are halved
        3. Slope changes and both intercepts are doubled
        4. Slope changes and both intercepts remain same

        A published solution is not available for this question yet.

        Question 19 NAT · 1.0 marks

        A chair manufacturer hires its assembly-line labour for $20 an hour and calculates that the rental cost of its machinery is $30 per hour. Suppose that a chair can be produced using 5 hours of labour or machinery in any combination. Based on the above data, answer the given subquestions.
        What will be the optimal combination of labour and capital. L*= _________________

          A published solution is not available for this question yet.

          Question 20 NAT · 1.0 marks

          A chair manufacturer hires its assembly-line labour for $20 an hour and calculates that the rental cost of its machinery is $30 per hour. Suppose that a chair can be produced using 5 hours of labour or machinery in any combination. Based on the above data, answer the given subquestions.
          What will be the optimal combination of labour and capital. K*= _________________

            A published solution is not available for this question yet.

            Question 21 NAT · 1.0 marks

            The short run cost function of a company is given by the equation TC=300+25Q+2Q\(^{2}\), where TC is total cost and q is no. of units produced. Based on the above data, answer the given subquestions.
            What will be the average fixed cost if the company produces 100 units _______

              A published solution is not available for this question yet.

              Question 22 NAT · 1.0 marks

              The short run cost function of a company is given by the equation TC=300+25Q+2Q\(^{2}\), where TC is total cost and q is no. of units produced. Based on the above data, answer the given subquestions.
              What is the marginal cost of the company at q=25? ___________

                A published solution is not available for this question yet.

                Question 23 NAT · 1.0 marks

                The short run cost function of a company is given by the equation TC=300+25Q+2Q\(^{2}\), where TC is total cost and q is no. of units produced. Based on the above data, answer the given subquestions.
                What is the average variable cost at q=25? _____________

                  A published solution is not available for this question yet.