## Economic Design

### GATE-CH-2011-61-eco-2mark

2011-61-eco

The variable cost ($$V$$) of manufacturing a product varies according to the equation $$V=4q$$, where $$q$$ is the quantity produced. The fixed cost ($$F$$) of production of same product reduces with $$q$$ according to the equation $$F=100/q$$. How many units should be produced to minimize the total cost $$(V+F)$$?

• 5
• 4
• 7
• 6

### GATE-CH-2012-58-eco-2mark

2012-58-eco

The cost function for a product in a firm is given by $$5q^2$$, where $$q$$ is the amount of production. The firm can sell the product at a market price of 50 per unit. The number of units to be produced by the firm such that the profit is maximized is

• 5
• 10
• 15
• 25

2012-43-eco

[Index]

### GATE-CH-2015-53-eco-2mark

2015-53-eco

The cost of two independent process variables $$f_1$$ and $$f_2$$ affects the total cost $$C_T$$ (in millions of dollars) of the process as per the following function: $C_T = 100 f_1 + \frac {1000}{f_1f_2} + 20f_2^2+50$ The lowest total cost $$C_T$$, in millions of dollars (up to one decimal place), is ____________

### GATE-CH-2017-54-eco-2mark

2017-54-eco

The total cost ($$C_T$$) of an equipment in terms of the operating variables $$x$$ and $$y$$ is $C_T = 2x + \frac{12000}{xy} + y + 5$ The optimal value of $$C_T$$, rounded to 1 decimal place, is _________

### GATE-CH-ME-2010-46-eco-2mark

ME-2010-46-eco

Annual demand for window frames is 10000. Each frame costs $200 and ordering cost is$ 300 per order. Inventory holding cost is \$ 40 per frame per year. The supplier is willing to offer 2% discount if the order quantity is 1000 or more, and 4% if the order quantity is 2000 or more. If the total cost is to be minimized, the retailer should

• order 200 frames every time
• accept 2% discount
• accept 4% discount
• order Economic Order Quantity

### GATE-CH-PI-2010-42-eco-2mark

PI-2010-42-eco

If annual demand, ordering cost and carrying cost become four times of their respective original values, then the economic order quantity (EOQ)

• remains the same
• gets halved
• gets doubled
• becomes four times

[Index]