www.vustudents.ning.com

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

# ECO404 Managerial Economics Assignment No. 2 Solution Fall 2015 Due Date February 09, 2016

ECO404 Managerial Economics Assignment No. 2 Solution Fall 2015 Due Date February 09, 2016

ECO404 - Managerial Economics Assignment No. 2 Solution Fall 2015 Due Date February 09, 2016

SEMESTER FALL 2015

MANAGERIAL ECONOMICS (ECO404)

ASSIGNMENT NO. 02

DUE DATE:

Feb 9, 2016

MARKS: 15

PROBLEM # 1:

Maximize Profit (ð) = 14X + 9Y

Subject to the following constraints:

4X + 2Y + SA = 30

1X + 1Y + SB = 20

3Y + SC = 31

The corner points are given as:

Corner points  X  Y

 A 6  0 B 5  2 C 3  4 D 0  6
From all this information, algebraically solve the linear programming problem  while finding the profit (Rs.) level at each point. Also indicate profit maximizing corner point.  (Marks: 4 + 1)

PROBLEM # 2:

The Water and Power Development Authority (WAPDA) has recently published the following estimates of demand and supply relations for electricity:

 Q D = 70,000 - 20,000P Q S = 30,000P
Calculate the perfectly competitive industry equilibrium price/output combination.
1. b.                    Assume that the industry output is organized into a cartel. Calculate the industry

price/output combination that will maximize profits for cartel members. (Note: As a cartel, industry MR=P=3.5 - 0.0001Q and MC=P=0.00003Q)

(Marks: 2.5 + 2.5)

PROBLEM # 3:

Following diagram shows the short run price and output determination under monopoly.

From the above diagram indicate profit maximizing output level, market price and average

cost at that level..

(Marks: 2 + 3)

IMPORTANT NOTE:

24 hours extra / grace period after the due date 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:

?  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”.

?  You may also compose your assignment in Open Office format.

?   Use black and blue font colors only.

RULES FOR MARKING

?  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.

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!

Views: 3730

### Replies to This Discussion

kindly post the complete solution of all questions.

thanks

adeel baig sb kindly send complete solution of all three problems

aik to economics smj nahi ati or phir yhan pur double minded. pehly yahan pur or solution tha . ab zarwa ny change soultion show kurwaya hy

kon sa solution theek hy. koi btay gaaaaaaaaaaa????????????/ i think zarwa ka soultion is best according to handouts???

Thanks Zarwa

According to handout page 151 to shakeel Bhai ka solution theek lg rha hy. Zrwa k solution ki Problem 1 samjh nhin aa rhi .. 2 se multiply keun kia ?

Prblem 2 mein P=1.4 kysy aaya ??

1

2

3

4

5

## Latest Activity

Muhammad Rizwan Ansari liked Karina Lopez's profile
1 hour ago
alvia khan and Shoaib Hasan Khan are now friends
1 hour ago
Huma noor left a comment for Karina Lopez
5 hours ago
Shoaib Hasan Khan updated their profile
7 hours ago
memon added a discussion to the group CS615 Software Project Management

8 hours ago