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# ECO401 Assignment#02 Solution & Discussion Due Date: 02-06-2011

ECO401 Assignment#02 Solution & Discussion Due Date: 02-06-2011

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### Replies to This Discussion

ok yup

A. Calculate total revenue (TR), marginal revenue (MR), total cost (TC),

marginal cost (MC) and profit (π) for each level of output (Q).

 Q P TFC TVC TR(p*Q) MR(dTR/dq) TC(TFC+TVC) MC(dTC/dQ) Profit(π) 400 2.5 150 750 1000 - 900 - 100 500 2.25 150 830 1125 125 980 80 145 600 2 150 905 1200 75 1055 75 145 700 1.75 150 995 1225 25 1145 90 80
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TR ..............MR.............TC ...............MC.........PROFIT
1000........... - . ........ 900 .............. - .......... 100
1125 ........125 ...........980 ............ 80............ 145
1200......... 75............... 1055........... 75......... 145
1225.............. 25 ............ 1145............ 90........... 80

B)Profit is maximize at 3 point where MR=MC
Thank yu but plzz complete rite sol need........
ECO401 assignment #2 Idea solution

Only part A solution

TR = P * Q
MR = change in TR / change in Q
MC = change in TC / change in Q
TC = TVC + TFC

Profit = TR - TC

Apply the formula:
TR MR TC MC Profit
1000 --- 900 --- 100
1125 1.25 980 0.8 145
1200 0.75 1055 0.75 145
1225 0.25 1145 0.9 80

B:
3rd point on outputs..i-e..600
See the attached file for another idea solution of ECO401 Assignment#02 Spring 2011
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ECO401 Assignment#02 one more idea solution see the attached file please
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Assignment # 2

Question:

A firm operating in competitive environment faces the following price (P),quantity (Q), total fixed cost (TFC) and total variable cost (TVC) schedules respectively:

A. Calculate total revenue (TR), marginal revenue (MR), total cost (TC),marginal cost (MC) and profit (π) for each level of output (Q).

Solution:-

 Q P TFC TVC TR MR TC MC π 400 2.5 150 750 1000 — 900 — 100 500 2.25 150 830 1125 1.25 980 0.8 145 600 2 150 905 1200 0.75 1055 0.75 145 700 1.75 150 995 1225 0.25 1145 0.9 80

B. Find the optimal level of output and price which maximizes firm’sprofit.

As we know that profit is maximized at the point where MC = MR. The optimal level of Output (Q) and Price (P) at which maximizes firm’s profit is 600 and 2.

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See the attached file for one more idea solution of ECO401
Attachments:
Thanks A Lot Tariq  Bhai Really Nice Effort

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