Chapter 10 - 2 = 70000 28125 -4500 -7500 3125 = 26750 B....

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Meghraj Patil Chapter 10 Home work 10.3 A. MC = AVC AVC = TVC / Q 0.02 + 0.00000036Q = 15000 + 0.02Q + 0.00000018Q*Q / Q 20 = 0.02 + 0.00000036Q Q = 500000 B. AVC = TVC / Q AVC = 15000 + 0.02Q + 0.00000018Q*Q / Q = 15000 + 0.02 * 500000 + 0.00000018*500000*500000 / 500000 AVC = 0.14 10.7 A. MC = AVC AVC = TVC/ Q 25 + 0.02Q = 5625 + 25Q + 0.01Q*Q / Q 25Q + 0.02Q*Q = 5625 + 25Q + 0.01Q*Q 0.01Q*Q = 5625 Q 2 = 562500 Q = 750 B. Economic Profit = π = TR – TC Π = P *Q – TC = 40Q – 5625 -25Q – 0.01Q*Q
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Meghraj Patil = - 5625 +15 Q – 0.01Q*Q But Q = 750 = 15 * 750 -0.01 * 750* 750 -5625 Π = 0 10.9 A. for profit maximization MR =MC 28 – 0.009Q = 3+ 0.001Q 25 = 0.001Q + 0.009Q 25 = 0.01Q Q = 2500 Now TR = P* Q 28Q – 0.0045Q 2 = PQ 28 – 0.0045Q = P P= 28 – 0.0045*2500 P= 28 – 11.25 P= 16.75 Now Π = TR- TC = 28* 2500 – 0.0045* 2500 2 - 4500- 3*2500- 0.0005* 2500
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Unformatted text preview: 2 = 70000 28125 -4500 -7500 3125 = 26750 B. Meghraj Patil Now P= 6 MC = TC/Q 3+ 0.001Q = 4500+ 3Q + 0.0005Q 2 / Q 3Q + 0.001Q 2 = 4500 + 3Q+ 0.0005Q 2 0.0005Q 2 = 4500 Q 2 = 9000000 Q = 3000 Now = TR-TC = P *Q 4500- 3Q 0.0005Q 2 =6* 3000- 4500 3*3000- 0.0005(3000) 2 = 18000- 4500- 9000-4500 = 0 Case Study A. As per the given data most of the profit is based upon the size measure. We get the intercept maximized when the size measure is net worth at the same time we get the R 2 maximized. C. Other important factors are to be study in detailed are like advertising, research and development, study more detailed about the competitors, how they are increase their profit, like number of production, no of distributors, Economy of the production....
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This note was uploaded on 07/26/2010 for the course MBA MBA 5002 taught by Professor Drhahn during the Spring '10 term at South Georgia College.

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Chapter 10 - 2 = 70000 28125 -4500 -7500 3125 = 26750 B....

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