com
SET - 1
R07
co
3.
What is the relationship between the marginal product and the average product curves of a
variable input?
4.
What are the features of a monopoly and a competitive market co-existing in monopolistic
competition?
5.
Define sole trader. What are the features, merits and demerits of sole trader?
6.
PQR Co. Ltd. is proposing to mechanize its operations. Two proposals A and B in the form
of quotations have been received from two different vendors. The proposal in each case cost
Rs. 6, 00,000/-. A discount factor of 15% is used to compare the proposals. Cash flows after
taxes are likely to be as under.
Cash flows after taxes (in Rs.)
Proposal A
Proposal B
Year
(in Rs.)
(in Rs.)
1
1.20,000
60,000
2
1,80,000
1,20,000
3
2,20,000
1,80,000
4
1,30,000
2,70,000
5
1,00,000
1,60,000
Which one do you recommend under Net Present Value Index method?
Define accounting? Explain the different accounting principles.
7.
w
w
.e
xa
sa
dd
a.
2.
8.
What are the important ratios? Explain any four of them with examples to understand the
financial statements?
1 of 1
R07
co
3.
What is perfect competition? Explain the equilibrium of firm and industry in both the shortrun and long-run under perfect competition.
4.
Define production function? What are the types of production function? Explain them in
brief.
5.
6.
7.
Rank the following investment proposals in order of their profitability according to PayBack Period and Discounted Cash flow methods assuming the cost of capital to be 10%.
.e
xa
sa
dd
a.
2.
w
w
8.
Life in years
10
5
8
10
12
What are the important ratios? Explain any four of them with examples to understand the
financial statements?
1 of 1
R07
2.
What is meant by Elasticity of demand? Explain giving a suitable illustration. How elasticity
of demand determines the price policy of a firm?
3.
Consider the case of the company with the following two investment alternatives each
costing Rs. 8, 00,000/-. The details of the cash flows are as follows.
dd
a.
co
1.
Year
sa
1
2
3
xa
The cost of capital is 14 per cent per year. Which one will you choose?
a) Under NPV method.
b) Under IRR method.
Explain the following with the help of a table and diagram under perfect competition and
monopoly.
a) Marginal Revenue
b) Average Revenue
5.
w
w
If sales are 10,000 units and selling price is Rs. 30 per unit, variable cost Rs. 20 per unit and
fixed cost is Rs. 90,000. Find out BEP in units and sales revenue. What is profit earned?
What should be the sales for earning a profit of Rs.50,000/-
6.
.e
4.
7.
8.
What are the important ratios? Explain any two of them with examples to understand the
financial statements?
1 of 1
R07
2.
3.
State the law of diminishing returns. Why does a diminishing marginal return to a variable
input occur eventually? Can they become negative? If so, why?
4.
How are price and output determined under monopoly? Show that under monopoly price is
higher and output is lesser than under perfect competition.
5.
6.
7.
Explain the concept of Liquidity and narrate its importance through suitable examples with
assumed data.
8.
Define the ratio. Explain the advantages and disadvantages of ratio analysis.
1 of 1
w
w
.e
xa
sa
dd
a.
co
1.