kayode8729
GCE help by sanni kayode abubakry aka kayus
Sep 05 2015 at 08:16am
(2)
C=24 3q
(ai)Total cost of producing 12 units
C=24 3q
24 3(12)
24 36
=60
(2aii)
36 units
C=24 3q
24 108
=132
(2b)
Average cost when 48 is produced
24 3q
24 3( 48 )
24 144
168
Average cost=c/q
168/48=3.5
(2bii )
58 units were produced
24 3q
24 3( 58 )
24 174
198
Average cost=c/q
198/58
3.4
(2c)
Marginal cost when 23 units were produced
Total cost of 12 units
C=24 3q
24 3(12)
24 36
60
Total cost of 23 units
24 3q
24 3(23)
24 69
=93
MC=93-60
=33
(ii)36 units were produced
Total cost of 23 units=93
Total cost of 36 units=132
MC=132-93=39
(2d)
Profit when 23 units are produced
=TR-TC
TR:pQ=5*23=115
TC=60
Profit=115-60=55
(ii) 48 units are produced
TR=5*48=240
TC=168
Profit=240-168
=72
