Practice Assignment № 5

I. The function of total costs is presented by definite equation in accordance to the individual variant. Its general view is TC=26+3Q+Q² (Q is quantity of produced units). Follow the instructions below to do the tasks 1.1 – 1.6 using basic cost function:

1.1. Write the functions of fixed costs and variable costs:

FC =26 VC =3Q+Q²

1.2. Fill the gaps in the following schedule after calculating all the costs for every definite volume of output. Then calculate total revenue under the price equals $P:

Make a conclusion about production unit activity, using such terms as economic efficiency and profitability:__________________________________________________

1.3. Plot the graph of FC, VC, TC, TR after choosing proper scale.

1.4. Write the functions of average total, average fixed and average variable costs:

ATC =26/Q + 3 + Q; AFC =26/Q; AVC = 3 + Q

1.5. Fill the gaps in the following schedule after calculating all the costs for every definite volume of output:

1.6. Plot the graph of AFC, AVC, ATC, MC, P after choosing proper scale.

II. Find the analogous concepts in the theory of the firm.

INDIVIDAL ASSIGNMENT № 6

Date: 2015-12-11; view: 840