JNU 2009 Doubts

Posted by Arushi :)) on Apr 17, 2014; 10:30pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-2009-Doubts-tp7587266.html

1.
Suppose only a single firm has the technology to produce a commodity for which the demand curve is perfectly elastic. Total variable cost of the firm increases more than proportionally with firm output.
Which of the following conditions must necessarily be true for the firm at the equilibrium?
a) Average revenue = Marginal cost
b) Average revenue > Marginal cost
c) Average revenue > Average cost
d) Average revenue > Marginal revenue
e) None of the above

2.
An investment is worth-making, if overtime the lifetime of the project
a) cash inflows are positive
b) net cash inflows ( inflows minus outflows ) are positive
c) cash inflows discounted by an appropriate rate of interest are positive
d) net cash inflows (inflows minus outflows) discounted by an appropriate rate of interest are positive
e) None of the above

3.
In a closed economy in which the GDP is growing at 7% per annum and the population at 2% per annum,
the income elasticity of demand for food is 0.4 . If the food prices are determined by demand and supply , at what rate must food supply must increase , if the price of food is to remain constant?