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# Sloution Eco 401

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Don't share ur original assignment ... it will get copied!

 AC 216.22 241.4 296.3 450 960 2750 yah kon say formalay say AC define kiya hia i cant understand  AC=Tr/q nahi hoga formula

quantity = units sold

ac = tc/units sold

See the attached file for another idea solution of ECO401 Assignment

See the attached file for another idea solution of ECO401 Assignment

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One more idea solution of ECO401 Assignment#02 Solution

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 Year Price (Rs.) Units sold TC 2007 350 148 32000 2008 425 145 35000 2009 510 135 40000 2010 630 100 45000 2011 720 50 48000 Estimated2012 1000 20 55000

A. Calculate average cost and average revenue of GN for each year.

B. Calculate at each level whether GN is operating at profit or loss.

• Average revenue = total revenue / quantity
• Total revenue= average revenue x quantity
• Average cost = total cost /unit produced

 PART A PART B AC AR TR Profit/Loss 216.3 350 51800 19800  profit 241.4 425 61625 26625  profit 296.3 510 68850 28850  profit 450 630 63000 18000  profit 960 720 36000 -12000  loss 2750 1000 20000 -35000   loss

C-Determine the quantity sold and price level at which the total profit for GN is maximized.

 Price level Quantity sold Profit 510 135 28850

D. As a student of Economics, analyze how this incident will affect the over all automobile industry?

Increase in Price will decrease the sale and increase the total cost

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