Question 1:
a) Define the term Quantitative Model?
b) A manufacturer of printed fabrics consists of thee machines, that prepare raw fabrics and five machines that print on it. Two type of printed fabric are produced. Type A need 3 minutes per meter to prepare and 6 minutes per meter to print. While Type B need 11 and 17 minutes per meter respectively. How much of each type of fabrics must be produced per hour in order to keep all the machines fully occupied?
Question 2:
a) Describe the method of Investment Evolution?
b) A new machine is expected to last eight years and to produce the annual savings of Rs. 23000/- What is its present value, allowing interest at 7% per annum.
Question 3: What are the transportation problems? Describe linear programming for transportation problem and the ways to minimize the combined production and transportation cost?
Question 4:
a) What do you understand by the term sensitivity analysis?
b) Describe:
• Conceptual Model
• Mathematic Model
• Algorithms and Application
• Time series analysis
• Linear analysis
c) Write brief notes on:
• Factor Elasticity
• Technological Change
• Production and Productivity
• Fixed inputs and variable inputs
• Short run and long run.
Question 5: What do you mean by opportunity costs? Describe with the help of examples, what problems are faced in measuring such costs?
Question 6: Why do firms produce more than one product? What is the rule for profit maximization for a multi product firm?
Question 7: What general guidelines must a firm follow in appropriately estimating the net cash flow from an investment?