CHAPTER 2
AN INTRODUCTION TO COST TERMS AND PURPOSES
2-1
A cost object is anything for which a separate measurement of costs is desired. Examples
include a product, a service, a project, a customer, a brand category, an activity, and a
department.
2-2
Dir
MICRO-ECONOMICS
ASSIGNMENT 1
Submitted to: TULSI JAYAKUMAR
Submitted by:
Group Number # 38
Sakshi Khurana (223)
Sakshi Jaikray(222)
Vivek Dharmarajan (243)
Siddhant Jain(230)
Kaushik Dutta(195)
Q1. A firms Total revenue function and Total Cost function ar
GROUP ASSIGNMENT 1
WORK TEAM# 38
Q1. A firms Total revenue function and Total Cost function are given by:
TR= 110Q -5Q2
TC= 10Q-Q2+0.33Q3
Determine:
a)
b)
c)
d)
e)
Equations for Marginal Revenue and Average Revenue
Equations for Marginal Cost and Average
Class Exercise in Cost
Analysis
Q1.Look at the table below:
Cost of Production as out put varies
(SGDs)
Total Machine Wage Maintenance Freight
Average No.
No.
Cost Cost
Cost
Cost
Cost
Output Cost
Machines Men
400
100
100
100
100
15
26.7
1
1
600
100
200
10
MICRO-ECONOMICS
ASSIGNMENT 1
Group Number # 38
Team Members: Sakshi Khurana (223)
Sakshi Jaikray(222)
Vivek Dharmarajan (243)
Siddhant Jain(230)
Kaushik Dutta(195)
Q1. A firms Total revenue function and Total Cost function are given by:
TR= 110Q -5Q2
TC=
Given: Q = L1/2K1/2
PL = $4, PK = $1
Goal: Produce Qo = 16 units as cheaply as possible.
(1) Solve for the cost-minimizing input combination:
L = _ K = _ TC = _
(2) Depict the optimum in the diagram to the right. Use actual numerical values to label
Fixed cost 30
Wage rate 80
Raw Material cost 2
For one unit of
output, 2 units of
No. of Total
material is required Work Produ
ers
ct
1
8
2
17
3
27
4
38
5
51
6
67
7
78
8
85
9
90
10
94
11
96
12
90
Product curves
No. of
Work
ers
1
2
3
4
5
6
7
8
9
10
11
12
M
(I)
A complete Demand Function is given by the equation:
Qd = -30P + 0.05Y + 2Pr + 4T
where,
P = price of the good,
Y = income
Pr = price of a related good (here a close substitute)
T = Taste and Preferences
Draw the function graphically.
(II)
Draw the De
Microsoft Excel 12.0 Answer Report
Worksheet: [Consumer decision making problems.xlsx]Sheet1
Report Created: 20-06-2015 12:11:10
Target Cell (Max)
Cell Name Original Value Final Value
$D$6 U
15 167.66666667
Adjustable Cells
Cell Name Original Value Final
Consumer decision making
Why does the consumer behave the way he does?
How does he choose among different goods?
The implication for us as a manager/marketer
ASSUMPTIONS MADE:
1. Assumption of a rationale consumer: he tries to maximize his utility
2. Non-
02.03 Tax Debate Worksheet
Career Name: Athletic Trainer
Yearly Income: $40,000
Flat Tax
Some Americans are supporting switching to a flat income tax rate of 15%. How much would
you pay under this plan?
(Your Income) X 15% (or .15) = $6,000
Regressive Tax
RISING MILK PRICE
S IN INDIA
A MICROECONOMIC
ANALYSIS
Group: 38
Introduction
Milk is the top ranking
commodity in India, with value
output
almost
equal
to
combined output of rice and
wheat.[1]
The article expresses concern
over the rising milk prices in