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Re: ::: vuaskari.com ::: 100% ECO401_IDEA SOLUTION BY BINISH AWAIS

in 4th case why MC value is 0.9, it is nor equal to MR that is MR= MC 

On Wed, Jun 1, 2011 at 10:02 AM, █▓Binish_Awais█▓ <greyferry@gmail.com> wrote:

 

100% sure idea solution of ECO401

Composed and solved by BINISH

greyferry@gmail.com

don't copy plz

 

 

 

Part A: solution by Binish

 

 

Q

 P

 TFC

TVC

TR

 MR

TC

 MC

 Profit (p)

 400

2.5

150

 750

 1000

-

900

 -

100

 500

2.25

150

  830

1125

1.25

980

0.8

145

  600

 2

 150

 905

1200

0.75

1055

0.75

145

   700

 1.75

150

  995

1225

0.25

1145

0.9

80

 

Part B: solution by Binish

 

Optimal level of output =600

Optimal level of price =2

Where MR=MC =0.75

 

Detailed calculation  of Part A:

For 1st case

TR=P*Q

TR=1000

For 2nd case

TR=P*Q

TR=1125

For 3rd case

TR= P*Q

TR=1200

For 4th case

TR=P*Q

TR=1225

Calculation for MR:

The first case will be blank coz we cant take delta for this case

So leave it blank :

For 2nd case

MR=  delta TR / delta Q

MR=1125-1000/500-400

MR=125/100

MR=1.25

 

 

 

 

 

For 3rd case

MR=delta TR/delta Q

MR=1200-1125/600-500

MR=75/100

MR=0.75

For 4th case

MR = delta TR /delta Q

MR = 1225-1200/700-600

MR=25/100

MR=0.25

Calculations for TC:

1st case

TC=TFC+TVC

=150+750

=900

2ND Case

TC=TFC +TVC

=150+830

=980

3rd Case

TC=TFC+TVC

=150+905

=1055

4th case

TC=TFC+TVC

=150+995

=1145

Profit calculations :

For 1st case :

Profit = TR-TC

=1000-900

=100

For 2nd case

Profit = TR-TC

=1125-1055

=145

For 3rd case

Profit = TR=TC

=1200-1055

=145

For 4th case

Profit = TR-TC

= 1225-1145

=80

 

 


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--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
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