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

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

SEMESTER SPRING 2014
MANAGERIAL ECONOMICS (ECO404)
ASSIGNMENT No.01
DUE DATE: 11th July, 2014
MARKS: 20
The Case:
ABC Technology Corp. Ltd is a leading supplier of standard 128 MB-RAM
computer chip. This Corporation was established in 1980 and has manufactured
computer chips by employing excellent team with broad experience. There are a
number of competitors of ABC’s manufactured chips as they are producing the
same output in terms of its shape, size and speed. ABC Technology Corp. Ltd
has a large market share and earns huge profit due to cost minimization. But, top
management has analyzed that this robust market competition can decrease the
equilibrated market price level. The total and marginal cost functions of ABC
Technology Corp. Ltd are:
TC=50,000 +35Q +0.0002Q2
MC=¶TC/¶Q=35 + 0.0004Q
Where Q is the number of computer chips produced.
Requirement:
A- By taking into account the forecasting of top management and above
total and marginal cost functions of ABC Limited Company, calculate
Company’s optimal output and profits if chip prices are stable at $45
per Chip.
B- If chip price fall to $40 due to high competition then calculate ABC
Limited Company’s optimal output and profits/Loss.
(Marking scheme: 10+10)
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.
OTHER 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 Post 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; activity schedule has
already been uploaded on VULMS for the current semester,
therefore no excuse will be entertained after due date of
assignments, quizzes or GDBs.
Best of Luck!

+ 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?


See Your Saved Posts Timeline

Views: 3727

.

+ 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)

Attachments:

Replies to This Discussion

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.

Dear Students Don’t wait for solution post your problems here and discuss ... after discussion a perfect solution will come in a result. So, Start it now, replies here give your comments according to your knowledge and understandings....

Dear Students Don’t wait for solution post your problems here and discuss ... after discussion a perfect solution will come in a result. So, Start it now, replies here give your comments according to your knowledge and understandings....

plz tell me what is Q in this question

simply use mc=mr

and mr=price

as this is the  question of perfect competition so simply use the formulas on pg#170

and the ans are

175000

and

81250

 these r not the answers.

setting mr = mc gives 25000 chips if price is 45 $

and 12500 chips if price is 40$

confusing

kuhi tu discuss karay 

Iska nahe pata kuch kya krna ha . Plz koi solution upload kr day

TC=50000+35Q+0.0002Q^2

MC=35+0.0004Q

Price of Chip= 45

For Optimal output.

MC=ATC

                 35+0.0004Q=(50000+35Q+0.0002Q^2)/Q

Multiplying by Q on both sides.

35Q+0.0004Q^2=50000+35Q+0.0002Q^2

35Q+0.0004Q^2-35Q-0.0002Q^2=50000

0.0002Q^2=50000

Q^2=50000/0.0002

Q^2=250000000

Q=15811

TC=50000+35Q+0.0002Q^2

Put Q=15811 in TC equation

TC=50000+35(15811)+0.0002(15811)^2

    =50000+553385+0.0002*249987721

    =50000+553385+49998

    =653383

Total Revenue =Quantity* price

                             =15811*45

                             =711495

Profit= TR-TC

Profit=711495-653383

           =58112

If price fall due to high competition then optimal quantity fall ? or not changed?

ager koi mistake ho to mention it plz

B- If chip price fall to $40 due to high competition then calculate ABC
Limited Company’s optimal output and profits/Loss.

Solution : ???????

Thank you bro

RSS

Latest Activity

+ ! ! ! ! ! ! ! ! ! AG liked 2.O's discussion Difference B/w Null and Undefined (Only Devs can understand) :P :P
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked Azhar Sagar's discussion Requirements of final year project and selection method
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked + Adeeena's discussion sometimes......
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked + Adeeena's discussion har shakhas muhabt krta hae !!!
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked + "AS"'s discussion Jo Ghair Thy..
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked + "AS"'s discussion Zabt Sabhi ...
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked +++STUDENT+++'s discussion YA Allah
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked +++STUDENT+++'s discussion Mja kun sy kr tu
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked Azhar Sagar's discussion Learn complete HTML IN 40 Minutes
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked +++STUDENT+++'s discussion poetry
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked + "AS"'s discussion Neelam Mat Karna ...
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked +++STUDENT+++'s discussion could your life change
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked +++STUDENT+++'s discussion true poetry
30 minutes ago
+ ! ! ! ! ! ! ! ! ! AG liked + "Jɨyą's discussion me esi hon...!
30 minutes ago
+ "Jɨyą replied to + "Jɨyą's discussion me esi hon...!
48 minutes ago
sonio updated their profile
1 hour ago
Sher Ahmed Khan posted a status
"Assalam o Alaikum! Me ne 23rd sept ko form jama karaya tha lekin mujhe abhi tak student id wali mail nhi aaye he.........plz help"
1 hour ago
+++Mahoo+++ liked +++STUDENT+++'s discussion YA Allah
2 hours ago
+++Mahoo+++ liked +++STUDENT+++'s discussion YA Allah
2 hours ago
+++Mahoo+++ liked +++STUDENT+++'s discussion Mja kun sy kr tu
2 hours ago

Today Top Members 

© 2019   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service