We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

www.vustudents.ning.com

 www.bit.ly/vucodes + Link For Assignments, GDBs & Online Quizzes Solution www.bit.ly/papersvu + Link For Past Papers, Solved MCQs, Short Notes & More

# ECO404 Assignment No 1 Complete Solution Spring 2012

MR = MC = 240

Where as MR = MC = P / {1 + (1/E)}

P = MC / {1 + (1/E)}

P = 240 / {1+ (1/-2.5)}

P = 240 / {1+ (-0.4)}

P = 240/ 0.6

P = 400

The optimum level of price that should be set to get the maximum level of higher profit is

400.

TC   = 10 + 5Q + 15Q2

MC = dTC / dQ

MC = 5 + 30Q

240 = 5 + 30Q

Q = 7.83

Putting the value of Q in equation (2)

(A)

TC = 10 + 5Q + 15Q2

TC = Fix Cost + Variable Cost

VC = 5Q + 15Q2                 …………………… (2)

VC = 5(7.83) + 15(7.83) 2

VC = 958.78

Variable cost is 958.78

(B) Average Total Cost

ATC = TC / Q

ATC = 10 / 7.83 + 5(7.83) / 7.83 + 15(7.83)2 / 7.83

ATC = 1.28 + 5 + 117.45

ATC = 123.73

(C) Average Variable Cost (AVC)

AVC = VC / Q

AVC = 958.78 / 7.83

AVC = 122.45

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?

Views: 229

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

### Replies to This Discussion

ECO404+Assignment#1+Complete+Solutoin+Spring+2012

Attachments:

MR = MC = 240

Where as MR = MC = P / {1 + (1/E)}

P = MC / {1 + (1/E)}

P = 240 / {1+ (1/-2.5)}

P = 240 / {1+ (-0.4)}

P = 240/ 0.6

P = 400

The optimum level of price that should be set to get the maximum level of higher profit is

400.

TC   = 10 + 5Q + 15Q2

MC = dTC / dQ

MC = 5 + 30Q

240 = 5 + 30Q

Q = 7.83

Putting the value of Q in equation (2)

(A)

TC = 10 + 5Q + 15Q2

TC = Fix Cost + Variable Cost

VC = 5Q + 15Q2                 …………………… (2)

VC = 5(7.83) + 15(7.83) 2

VC = 958.78

Variable cost is 958.78

(B) Average Total Cost

ATC = TC / Q

ATC = 10 / 7.83 + 5(7.83) / 7.83 + 15(7.83)2 / 7.83

ATC = 1.28 + 5 + 117.45

ATC = 123.73

(C) Average Variable Cost (AVC)

AVC = VC / Q

AVC = 958.78 / 7.83

AVC = 122.45

Thank u very much sir

Dear sir Tariq Malik sb first of thanks a lot for helping us at the time of need. U are always first to help. we all pray for u and your group. sir your this web site is very heavy. system just lie down to run this web however, i could not thank u previously because i was unable to entre in your web or page. Any way thanks a lot good job done. kep it up. see u

see the attached file.

Attachments:

Student ID: mc110202009

MBA

Assignment No.1

Managerial Economics

Course Code: Eco404

________________________________________________________________________

MR = MC = 240

Where as MR = MC = P / {1 + (1/E)}

P = MC / {1 + (1/E)}

P = 240 / {1+ (1/-2.5)}

P = 240 / {1+ (-0.4)}

P = 240/ 0.6

P = 400

The optimum level of price that should be set to get the maximum level of higher profit is

400.

TC   = 10 + 5Q + 15Q2

MC = dTC / dQ

MC = 5 + 30Q

240 = 5 + 30Q

Q = 7.83

Putting the value of Q in equation (2)

(A)

TC = 10 + 5Q + 15Q2

TC = Fix Cost + Variable Cost

VC = 5Q + 15Q2                 …………………… (2)

VC = 5(7.83) + 15(7.83) 2

VC = 958.78

Variable cost is 958.78

(B) Average Total Cost

ATC = TC / Q

ATC = 10 / 7.83 + 5(7.83) / 7.83 + 15(7.83)2 / 7.83

ATC = 1.28 + 5 + 117.45

ATC = 123.73

(C) Average Variable Cost (AVC)

AVC = VC / Q

AVC = 958.78 / 7.83

AVC = 122.45

## Latest Activity

17 minutes ago

18 minutes ago
24 minutes ago
29 minutes ago
32 minutes ago
32 minutes ago
35 minutes ago
37 minutes ago
44 minutes ago
46 minutes ago
1 hour ago
1 hour ago
1 hour ago
1 hour ago
1 hour ago
1 hour ago
+ ! ! ! ! ᎠixieᎠuຮt꧂ liked moniba hussain's blog post love
2 hours ago
+ ! ! ! ! ᎠixieᎠuຮt꧂ liked moniba hussain's blog post fun
2 hours ago

1

2

3