eco401 assignment 2 solution 2021

ECO401 assignment 2 solution 2021

ECO401 assignment 2 solution 2021

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ECO401 Assignment No.2 2021

Question No.1

 

Solution:

 

Profit is maximum at MR=MC

 

MR= dTR/dQ

 

dTR50/4Q= d150AQ – d4Q2/dQ = MR

 

 

MR= 150 — 8Q

 

MC= dTC/dQ

 

dTC/dQ= d40/4Q + dl0Q/4Q + d3Q2/4Q = MC

 

 

MC= 10 + 6Q

 

MR=MC

 

150-8Q=10+6

 

150-10=6Q+8Q

 

14Q= 140

 

Q = 140/14

 

Q= 10

 

The output is 10 units at the profit maximization level

 

 

Question No.2

 

Solution:

 

π=TR-TC

 

π= (150Q – 4Q2) – (40-F 10Q + 3Q2)

 

 

π=150Q-4Q2-40-10Q-3Q2

 

 

π= -7Q2 +140Q – 40

 

π= -7(10)2+ 140(10)- 40

 

π= -700 + 1400 – 40

 

π= 660

 

At profit maximization level profit is 660rs

 

Question No.3

Solution:

 

AR = TR/Q

 

TR/Q = AR = 150Q/Q – 4Q2/Q

 

 

AR=150-4Q

 

Slope of AR = dAR/dQ

 

 

dAR/dQ = Slope of AR = d150/dQ – d4Q/dQ

 

Slope of AR = -4

 

MR= 150 – 8Q

 

Slope of MR = dMR/dQ

 

dMR/4Q = Slope of MR = d150/dQ – d8Q/dQ

 

Slope of MR = -8

 

Slope of MR is -8 and Slope of AR is -4

 

So, the Slope of MR is twice the slope of AR prove.

 

  • ECO401 assignment 2 solution
  • eco401 assignment 2 solution 2020
  • eco401 assignment 2 solution 2021

 

 

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