1. The document provides production data for a pizza factory including output quantities for different numbers of workers. It asks to draw graphs of total, marginal, and average product and explain the relationship between these values.
2. It also provides cost data for a motor company and asks to complete the table and explain relationships between marginal cost, average cost, and the equilibrium condition when minimizing costs subject to a quantity constraint.
3. Finally, it asks questions about market structure, demand forecasting methods, market concentration, and the role of the Herfindahl–Hirschman Index.
1. The document provides production data for a pizza factory including output quantities for different numbers of workers. It asks to draw graphs of total, marginal, and average product and explain the relationship between these values.
2. It also provides cost data for a motor company and asks to complete the table and explain relationships between marginal cost, average cost, and the equilibrium condition when minimizing costs subject to a quantity constraint.
3. Finally, it asks questions about market structure, demand forecasting methods, market concentration, and the role of the Herfindahl–Hirschman Index.
1. The document provides production data for a pizza factory including output quantities for different numbers of workers. It asks to draw graphs of total, marginal, and average product and explain the relationship between these values.
2. It also provides cost data for a motor company and asks to complete the table and explain relationships between marginal cost, average cost, and the equilibrium condition when minimizing costs subject to a quantity constraint.
3. Finally, it asks questions about market structure, demand forecasting methods, market concentration, and the role of the Herfindahl–Hirschman Index.
1. The document provides production data for a pizza factory including output quantities for different numbers of workers. It asks to draw graphs of total, marginal, and average product and explain the relationship between these values.
2. It also provides cost data for a motor company and asks to complete the table and explain relationships between marginal cost, average cost, and the equilibrium condition when minimizing costs subject to a quantity constraint.
3. Finally, it asks questions about market structure, demand forecasting methods, market concentration, and the role of the Herfindahl–Hirschman Index.
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Practise assignment [Submit it by 23rd Oct.
Hand written] Problem set : “Theory of
Production Cost and Market” 1. Production function in short run of a pizza factory. Complete the table and draw Graph of TP, MP and AP in one graph paper: No. of Output APL MPL Output workers (quantity of elasticity of Pizzas labour produce per E=% change in hour) or Total output) / (% product change in labour) 0 0 1 3 2 8 3 12 4 14 5 14 6 12
a) Draw the graphs of TPL, MPL and APL. Explain the graph. b) What happen at point of Inflection? c) Why APL said to be asymptotic in nature? d) What is the relationship between APL and MPL. ?
2. Sharda Motor need an economist who is conversant with the cost output relationship. In order to test this knowledge, the company has designed a small test based on certain cost-output data from its own company. The same are given below:
Q TVC TFC TC AFC AVC ATC MC
0 0 250 10 50 250 20 80 250 30 120 250 40 170 250 50 230 250 60 300 250 70 380 250 80 470 250 90 570 250 Where Q=Output, TC = Total Cost, MC Marginal Cost, TFC=Total Fixed Cost, TVC=Total Variable cost, AFC= Average Variable Cost, AFC= Average Fixed Cost, AVC= Average Variable Cost, ATC= Average Total Cost. The company requires the candidate to complete the above table. 3. What is the relationship between MC and AC. Explain through graph. Can anyone explain through mathematically? 4. Features of Isoquant. When We minimize cost subject to constrain Quantity what is the equilibrium condition. Explain through graph. 5. Four market Structure Structure No. of firms Control over Types of goods Barriers to entry price Perfect Competition Monopolistic Competition Oligopoly
Monopoly
6. Why to measure the market concentration HHI play a vital role?
