We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>
+ Link For Assignments, GDBs & Online Quizzes Solution |
+ Link For Past Papers, Solved MCQs, Short Notes & More |
SEMESTER SPRING 2016
MANAGERIAL ECONOMICS (ECO404)
ASSIGNMENT # 01
DUE DATE: 12
TH
MAY, 2016
MARKS: 10
Question # 1
Golden Flakes is a manufacturer brand of different flavor of snacks like potato chips,
corn chips, tortilla chips,cheese curls and many more. The brand has produced a new
flavor of sweet corn snacks for sale. The management wants to know the output levels
which minimize total cost (TC) and maximize total revenue (TR) of the firm. Suppose
Firm has following costand revenue functions.
TC = 1800 – 120Q + 0.025Q
2
TR = 1500 + 600Q – 0.06Q
2
Requirements:
Keeping in view the above scenario and given information, calculate the following,
a) Quantity of output that will minimize TC
b) Quantity of output that will maximize TR
(2.5 + 2.5)
Question # 2
Suppose an improvement in the weather leads to the bumper harvest of Banana crop. Due
to this bumper crop the price of bananas reduces from Rs. 70/dozen to 35/dozen and
quantity demanded of Bananas increases from150 dozens to 210 dozens in a particular
market. In table form, it can be written as:
Price Quantity demanded of
Banana
P1 = 70 Q1 = 150
P2 = 35 Q2 = 210
Requirements:
Keeping in view the above scenario and given information, calculate the following,
a) Price Elasticity of demand
b) Derive simple linear demand function / Curve (Hint : use P = a + bQ)
(2.5 + 2.5)
Note: You are advised to watch video lectures as well as study handouts and
recommended text books before attemptingthe assignment. Write down formula
and all relevant steps involved in calculations.
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome
uploading difficulties. This extra time should only be used to meet the
emergencies and above mentioned due dates should always be treated as final
to avoid any inconvenience.
IMPORTANT INSTRUCTIONS
DEADLINE:
Make sure to upload the solution file before the due date on VULMS.
Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
Use the font style “Times New Roman” or “Arial” and font size “12”.
It is advised to compose your document in MS-Word format.
You may also compose your assignment in Open Office format.
Use black and blue font colors only.
RULES FOR MARKING
Please note that your assignment will not be marked, if:
It is submitted after the due date.
The file you uploaded does not open or is corrupt.
It is in any format other than MS-Word or Open Office; e.g. Excel,
PowerPoint, PDF etc.
It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students!
As you know that Pre Mid-Term semester activities have started
and load shedding problem is also prevailing in our country.
Keeping in view the fact, you all are advised to post your activities
as early as possible without waiting for the due date. For your
convenience; activityschedule has already been uploaded on
VULMS for the current semester, therefore no excuse will be
entertained after due date of assignments, quizzes or GDBs.
WISHING YOU BEST OF LUCK FOR THE WHOLE SEMESTER!
Tags:
+ How to Follow the New Added Discussions at Your Mail Address?
+ How to Join Subject Study Groups & Get Helping Material? + How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators? + VU Students Reserves The Right to Delete Your Profile, If?.
+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)
+ Click Here to Search (Looking For something at vustudents.ning.com?) + Click Here To Join (Our facebook study Group)please discuss your ideas
kiya kisi ko samjh nhai aa rahi assignemnt ki?
its also very simple aatika...nice to see you here with same subject.
then help
P1 = 70
P2 = 35
Quality demanded of Banana
Q1 = 150
Q2 = 210
To find linear demand function 1st finds slop.
--------------------------------------------
b = P2 - P1/Q2 - Q1
b = 35-70/210-150
b = -0.58
Demand function
----------------
P = a + bQ
So
---
a = P - bQ
a = 35 - (-.58) (210)
a = 175
And
----
a = P - bQ
a = 70 - (-.58) (150)
a = 175
Price elasticity of demand
---------------------------
(Q2-Q1) x (P2+P1)
= ------- -------
(P2-P1) (Q2+Q1)
= 0.523
TC = 1800 - 120Q + 0.025Q2
To minimize the TC
------------------
MC = dTC / dQ
= 0.025Q - 120 = 0
By putting value of Q if MC > 0 then it will be minimize
For Q
-----
0.025Q - 120 = 0
Q = 120 / 0.025
Q = 4800
AT THE LEVEL OF OUTPUT WHEN Q is 4800 it will be minimize as it is greater than zero
TR = 1500 + 600Q - 0.06Q2
To maximize
========
MR = dTR / d Q
MR = 600- 0.06Q
FOR THE PROFIT MAXIMIZATION
------------------------------------
MC = MR
0.025Q -120 = 600 - 0.06Q
0.085Q = 720
Q = 8470
NOW FIND THE PROFIT MIAXIMIZATIN
-------------------------------------------
ATR= TR/ Q
ATR = 1500/Q +600 - 0.06 Q
BY putting Q = 8470
ATR = 92
is it the solution???
yes it is a solution but kitna correct hy ye pata nahi
kiye ye correct hy? agr nahi so please correct it Mr. fahad riaz
Please Discuss here about this assignment.Thanks
Our main purpose here discussion not just Solution
We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.
P1 = 70
P2 = 35
Quality demanded of Banana
Q1 = 150
Q2 = 210
To find linear demand function 1st finds slop.
--------------------------------------------
b = P2 - P1/Q2 - Q1
b = 35-70/210-150
b = -0.58
Demand function
----------------
P = a + bQ
So
---
a = P - bQ
a = 35 - (-.58) (210)
a = 175
And
----
a = P - bQ
a = 70 - (-.58) (150)
a = 175
Price elasticity of demand
---------------------------
(Q2-Q1) x (P2+P1)
= ------- -------
(P2-P1) (Q2+Q1)
= 0.523
TC = 1800 - 120Q + 0.025Q2
To minimize the TC
------------------
MC = dTC / dQ
= 0.05Q - 120 = 0
By putting value of Q if MC > 0 then it will be minimize
For Q
-----
0.05Q - 120 = 0
Q = 120 / 0.05
Q = 2400
AT THE LEVEL OF OUTPUT WHEN Q is 4800 it will be minimize as it is greater than zero
TR = 1500 + 600Q - 0.06Q2
To maximize
========
MR = dTR / d Q
MR = 600- 0.12Q
FOR THE PROFIT MAXIMIZATION
------------------------------------
MC = MR
0.05Q -120 = 600 - 0.12Q
0.17Q = 720
Q = 4235
NOW FIND THE PROFIT MIAXIMIZATIN
-------------------------------------------
ATR= TR/ Q
ATR = 1500/Q +600 - 0.12 Q
BY putting Q = 4235
ATR = 387
admin please help ...................my assignment is correct or not
Question # 2
Given data
Price |
Quantity demanded of Banana |
P1 = 70 |
Q1 = 150 |
P2 = 35 |
Q2 = 210 |
For the linear function we will proceed as :-
b = P2 - P1/Q2 - Q1
b = 35-70/210-150
b = -0.58
Demand function
P = a + bQ
So we have
a = P - bQ
a = 35 - (-.58) (210)
a = 175
and next we a = P - bQ
a = 70 - (-.58) (150)
a = 175
Price elasticity of demand
(Q2-Q1) x (P2+P1)
= (P2-P1) (Q2+Q1)
= 0.523
TC = 1800 - 120Q + 0.025Q2
To minimize the TC
MC = dTC / dQ
= 0.05Q - 120 = 0
By putting value of Q if MC > 0 then it will be minimize
For Q
0.05Q - 120 = 0
Q = 120 / 0.05
Q = 2400
At the level of output when Q is 4800 it will be minimize as it is greater than zero
TR = 1500 + 600Q - 0.06Q2
To maximize
MR = dTR / d Q
MR = 600- 0.12Q
For the profit maximization
MC = MR
0.05Q -120 = 600 - 0.12Q
0.17Q = 720
Q = 4235
Now Find the Profit Maximization
ATR= TR/ Q
ATR = 1500/Q +600 - 0.12 Q
BY putting Q = 4235
ATR = 387
© 2019 Created by + M.Tariq Malik. Powered by
Promote Us | Report an Issue | Privacy Policy | Terms of Service
VU Students reserves the right to delete any profile, which does not show any Activity at site nor has not any activity more than 01 month.
We are user-generated contents site. All product, videos, pictures & others contents on vustudents.ning.com don't seem to be beneath our Copyrights & belong to their respected owners & freely available on public domains. We believe in Our Policy & do according to them. If Any content is offensive in your Copyrights then please email at m.tariqmalik@gmail.com or Contact us at contact Page with copyright detail & We will happy to remove it immediately.
Management: Admins ::: Moderators
Awards Badges List | Moderators Group
All Members | Featured Members | Top Reputation Members | Angels Members | Intellectual Members | Criteria for Selection
Become a Team Member | Safety Guidelines for New | Site FAQ & Rules | Safety Matters | Online Safety | Rules For Blog Post