# ECO402 VU Current Midterm Fall 2012 Paper 9 December 2012

 Quantity of variable input Total output Marginal product of variable input Average product of variable input 0 0 1 100 2 190 3 270 4 330 5 360

5 marks ( is main last 2 tables fill krny thy)

 Q P = AR TR MR 8 9 9 8 10 7 11 6 12 5

5 marks ( last 2 tables fill krny hain)

Suppose an investor is concerned about a business choice in which there are three prospects, whose probabilities and returns are given below:

 Probability Return (Rs.) 0.2 100 0.4 50 0.4 -25

What is the expected value of the uncertain investment?  3marks

1. a.    If a consumer has certain amount of money and he has to spend on two goods apple and banana. This individual completely prefers apple than banana. Keeping in view the given scenario what will be the necessary condition for satisfaction to be maximized when choosing between apple and banana?
2. b.    Will the consumer preference for this particular product like apple will be changed if there is slightly change in price of banana and change in income of consumer?

(Marks: 1.5+1.5)

Question: A. How do we calculate the user cost of capital?
B. Why isocost lines are straight lines?
(Marks: 1+2)

Rest were mcqz….total questions 27

Another Paper:

22 mcqs thay 50% past papers may say thay..

1-3 marks ka que tha jis may budget line ka graph bnana tha.

2-3 marks ka jis may expected value find krni thi.

3-3 marks ka jis may MRTS ki value find krni this

4-5 marks ka jis may isoquant ka aur short run producing function ,long run producing function ka que tha.

5-5 marks ( is main last 2 tables fill krny thy)

 Q P = AR TR MR 8 9 9 8 10 7 11 6 12 5

5 marks ( last 2 tables fill krny hain)