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ECO601 Business Econometrics Assignment No 01 Spring 2019 Solution & Discussion Due Date: 23-05-2019

ECO601 Business Econometrics Assignment No 01 Spring 2019 Solution & Discussion Due Date: 23-05-2019

The Case:
In Business, the change in the total cost which has been observed due to production of
one more unit of a product/output is called marginal cost. In most of the manufacturing
endeavors, initially, the marginal cost falls as the volume of output rises because of
economies of scale. In the beginning, costs are lower for the reason that there are some
discounts on bulk purchases of raw materials, efficient use of machinery and specialized
labors are engaged in performing the tasks. However, a point comes in the production
process where the marginal cost will begin to rise again as a result of diseconomies of
scale. At this stage, the cost may rise because of multiple factors like to hire more
management, buy more equipment, to tap out a local source of raw materials or to spend
more money to obtain the sources.
Now consider the following marginal cost function (MC) where Q is the level of output:
Where a, b and c are coefficients. If , and then the marginal cost
function will be as following:
Requirements:
1. Calculate cost minimizing output level and minimized cost by using the
optimization process. Also, confirm that cost is minimized which is produced at
the output level.
2. What will be the conditions (signs) of coefficients b and c in order to get the
required shape of the marginal cost (MC) curve?
3. If the required condition of coefficients for the MC curve is violated then what
will be the shape of the curve?

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yeh assignment kis chapter main sy hai abhi tk yehi nai pta chal rha to agy kya solve kren...

tariq sir koi hint type help hi krwa dain kahen sy... assignment nai ho rai solve

ya bs formulas hi bta dain solve khud kr lain gy

discuses this assignment

nasreen any help? ho gai assignment?

nahe ke abi 

main ny bhi nai ki plz ap mujhy bhi help kr dain send krni hai aj hi kr rai hun but samajh nai aa raha kuch bhi

mjhy chapter  5 sy lgta h solution

to ap bta dain naa kya hai solution hai hm sy nai ho rha

tufail bhai any help plz?

assignment nai ho rai

nasreen apny to ab tk kr li ho gi plz help 

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