Documente Academic
Documente Profesional
Documente Cultură
Upload
Umer Bhutta
View Public Profile
My ContentMy Reading FeedMy Stats
NotificationsAccount | SettingsStore EarningsHelp
Log Out
Search the world's digital library.
Browse
By Type
Books - FictionBooks - Non FictionBrochures & CatalogsComicsGovernment DocsHow-To Guides & ManualsNewspapers & MagazinesPresentationsMenus &
Download
RecipesResearchSchool Work
Go
BackAdd Note
By Topic
Link
Art & DesignBusinessCreative WritingEntertainmentFictionFoodGovernment & PoliticsHealth & FitnessReligionScienceLiterature
Embed
Save
for later
Trying to print this document?
Language:
1
English
of 8
Readcast
Unfortunately, printing Scribd documents from your browser doesn't work well. Instead, we recommend you download this document as a PDF
file and use your PDF reader to print.
Download and Print
Not Readcasted
Note: You can always click on the Readcast button to share with your Scribd followers.
CHAPTER#7 COST THEORY AND ANALYSIS
SOLUTION
PROBLEMS
7-1
Add a comment
Y=A+BX
Submit
We can calculate total cost by the method of linear regression with the help of financial
calculator.
TC=1000+80Q
Tw eet
TFC=1000
TVC=80Q
AVERAGE TOTAL COST=TC/Q
TC= (1000+80Q)/Q
ATC=1000/Q+80
AVERAGE FIXED COST=TFC/Q
AFC=1000/Q
AVERAGE VARIABLE COST=TVC/Q
80Q/Q=80
Search This Document
SearchMC=CHG TC/CHG Q
Search
History:
RATE
OF OUTPUT
0
Searching...
Result 00 of 00 2
4
00 results for result 7for
10
p.
TOTAL COST
1000+80(0)=1000
1000+80(2)=1160
1000+80(4)=1320
1000+80(7)=1560
1000+80(10)=1800
MARGINAL COST
80
80
80
80
7-2
Y=A+BX
FC=5000
We can calculate total variable cost by the method of linear regression with the help of financial
calculator.
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
1/8
4/17/13
TOTAL COST
5000+1000(1)=6000
5000+1000(2)=7000
MARGINAL COST
1000
3
4
5
5000+1000(3)=8000
5000+1000(4)=9000
5000+1000(5)=10000
1000
1000
1000
7-3
TC=200+5Q-0.04Q^2+0.001Q^3
MC=5-0.08Q+0.003Q^2
a) ATC , AVC , AFC , FC
FC=200
AVERAGE TOTAL COST=TC/Q
(200+5Q-0.04Q^2+0.001Q^3)/Q
ATC=200Q^-1+5-0.04+0.001Q^2
AFC=200Q^-1
TR=50Q
TC=10000+30Q
A) TR=TC
50Q=10000+30Q
Q=500
B) Q=FC+PROFIT/P-AVC
10000+20000/50-30
Q=1500
7-5
TFC=20, P=10, PROFIT=2
A) BREAKEVEN OUTPUT=FC/P-VC
CM=P-VC
2=10-VC
VC=8
BREAKEVEN OUTPUT=20/10-8=10
B) PROFIT ELASTICITY=Q(P-VC)/Q(P-VC)-TFC
20(10-8)/20(10-8)-20
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
2/8
4/17/13
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
3/8
4/17/13
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
4/8
4/17/13
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
5/8
4/17/13
Published by
Sadaf Faruqui
Follow
Search This Document
Search
TIP Press Ctrl-FF to search anywhere in the document.
How-To Guides/Manuals
Rating:
Upload Date: 08/12/2012
Copyright:
Attribution Non-commercial
Tags:
This document has no tags.
Free download as PDF File (.pdf), Word Doc (.doc / .docx), Text File (.txt) or read online for free.
Flag document for inapproriate content
Read offline in your PDF viewer
Edit this document in Adobe Acrobat, Microsoft Word, Notepad
Keep a copy in case this version is deleted from Scribd
Read and print without ads
Email the file
.DOCX
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
6/8
4/17/13
.TXT
Download
3 p.
Chapter#1 Introduction to Managerial Economics solution
Sadaf Faruqui
457 Reads
13 p.
Chapter#9 Perfect Competition and Monopoly Solution
Sadaf Faruqui
471 Reads
13 p.
Capital Structure (Gearing)
Sadaf Faruqui
147 Reads
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
7/8
4/17/13
Next
Notes
Add a Note
ubhutta_5
Privacy:publicPost Note
Umer Bhutta15 days ago
RemoveReply
Can Any one Email This Chapter Umer9129@gmail.com
About
About Scribd
Blog
Join our team!
Contact Us
Premium
Premium Reader
Scribd Store
Advertise with us
Get started
AdChoices
Support
Help
FAQ
Press
Partners
Developers / API
Legal
Terms
Privacy
Copyright
Copyright 2013 Scribd Inc.
Language:
English
www.scribd.com/doc/102695041/Chapter-7-Cost-Theory-and-Analysis-Solution
8/8