Answer...

Q1

The total cost equation in the production of beckon at a certain factory is given as follows - 1000 + 1000-2502+ 03 Where C is the cost is She. and Q is the quality in Kg. Required: i. Compute the total and average cost at the output of 1 0kg and 11kg. ii. What is the marginal cost of the 12th kg? ili. Explain the slope and relationship between the average cost, average variable cost, marginal cost and fixed cost curve using relevant diagramsTrusts enterprises is a medium sized firm which specializes in production of water taps The finance department has determined the following cost structure per unit of a tap produced. a) Variables cost per unit 15/= b) The fixed cost period is 20/= c) Selling price for tap is 2 5/= Required: i. Deriver the total cost function and re venue function ii. Determine the break win point. ili. The number of taps that would give a profit of 4/= iv. If for some reason the price of taps increase to 3 5/= per tap. What will be the break even output