WorksheetsBM Simple Calculus: Applications
Total questions: 10
Worksheet time: 17mins
If the demand function for a product is given by P = 4-5x2, the MR is
(a) 4-5x2
4x-5
4-10x
4-15x2
Assuming total costs C = f(q), q being the output, If average variable cost is 5 and Average fixed cost is 100/q the Marginal cost is
10
5
5+q
5+100q2
The average cost per repair of a scooter is found to be Rs. 250 and the total number of repairs is given by t2, where t is time in months since the purchase of the scooter. The average repair cost of scooter per month is
250t
250 t3/2
250
250 t2
If the price of the scooter is Rs.50,000 and its salvage value is Rs. 25,000. And if the scooter is to be retained for t months, the average replacement cost per month
25000/t
25000t
5000/t
75000/t
A firm requires 5,000 units of material per annum. The cost of purchasing is Rs. 1 per unit, the cost of replacement of stock of material is Rs. 20. Assuming the optimum order size to be Q, Annual Ordering cost is given by
5000/Q
100,000/Q
12500
100000
A firm requires 5,000 units of material per annum. The cost of purchasing is Rs. 1 per unit and cost of storing material is 20 per cent per annum of the average rupee inventory. Assuming the optimum order size to be Q, Annual holding cost is given by
Q/8
25Q/100
25Q
.25Q
Given an inventory cost function as C = 25/Q + Q/16 ,
The optimum amount of inventory is
200
20
25
16
Which of the following statement is true
Annual Inventory Costs (TIC) = Annual Ordering costs (Oc)
+ Annual Holding Costs (Hc)
Annual Inventory Costs (TIC) = Annual Production costs (Pc)
+ Annual Ordering Costs (Hc)
Annual Inventory Costs (TIC) = Annual Production costs (Pc)
+ Annual Holding Costs (Hc)
Annual Inventory Costs (TIC) = Annual Ordering costs (Oc)
- Annual Holding Costs (Hc)
Suppose the average cost is 5 and Marginal Costs is given as 10, what will be the elasticity of total costs assuming the C = f(q), where C is the total costs and q is the output
1/2
2
5
50
A monopolists demand function is given by P = 28-5Q and its average cost function is given by AC = Q + 4. Find the maximum profit obtainable by the monopolist. Q is the output and P is the price. At the equilibrium
Q = 5
Q = 2
Q = 4
Q = 10
