please give the solutions of these questions.

(a) A Company wants to purchase a machine. There are two machines A and B available in the market details of which are given below. Decide which machine should the company purchase on the basis of pay-back period method. (b) A Company has purchased an equipment whose first cost is 200000 with an estimated life of 10 years. The estimated salvage value of the equipment at the end of its lifetime is 25000 . Calculate the depreciation and the book value for he entire life of the equipment using the declining balance method of depreciation by assuming 0.2 for K. 5. (a) A perfectly competitive firm faces a price of 14 per [4] (b) A firm invests in one of the two mutually alternatives unit. It has the following short run cost schedule: the details of which are given below. Determine the better alternative based on the annual equivalent method by assuming i=20%, compounded annually. Find the following: i) Marginal cost for each level of output ii) Equilibrium level of output iii) Whether the firm concerned experiences the shutdown point. (b) If the total cost (TC) function for a monopolist is given by the equation: TC =500+25Q2 and the demand function for the good produced by the monopolist is given by Q=250.05P, find the profit maximizing price and quantity, and maximized profit of the monopolist. 6. (a) A Company has identified two mutually exclusive (b) A State govt. is planning a hydroelecme rroject ien a investment proposals. The details of both the Proposals are given in the following table. Find the better alternative on the basis of rate of return method of comparison. river basin. In addition to the production of electric power, this project will provide flood control, irrigation and recreation benefits. The estimated benefits and costs that are expected to be derived from this project Check whether the State govt. snour nupromum ,he Project (assume i =12% ) BHT-DUI 2022 SOT Autuman Find Sentexter Examination-2022 (4) (5) (h) A firm's TC function is given by the equation: 3. (a) Suppose the firm has the following total cost (TC) function: [4] TC=5000+50Q+100Q2 TC=45200+1.5Q+2.7Q20.004Q3 Find out MC when Q=5 i) Write the equations for TFC, TVC, AFC, AVC, AC and MC. (i) A Company has purchased an equipment whose first ii) Find the values of TFC, TVC, AFC,AVC,AC and cost is 100000 with an estimated life of eight years. MC for Q=3 The estimated salvage value of the equipment at the iii) Find the level of output at which AC will be minimum. end of its lifetime is 20000. Determine the depreciation charge and book value for 4th year using (b) Establish the relationship between Average cost and [4] the Straight Line Method of Depreciation. marginal cost curves. Derive the Long-run Marginal Cost Curve with the help of Short-run Average Cost (j) A Hotel can have maximum 1200 tourists Curves, Short-run Marginal Cost Curves and Long-run accommodated in it at a time. The daily fare is 700/. Average Cost Curve The Variable Cost per tourist is 125/ - while the fixed cost is 150,000/. Find the Break-Even number of tourists. 4. (a) i) A Producer is experiencing the Production function [4] SECTION-B Q=50L0.5K0.5. Given that the Price of K is 4 and that of L is 5. The Producer is currently producing 300 output 2. (a) ABC Co. Ltd. is a publisher of paperback fiction. [4] using the factor combination K=15 and L=6. Is this an The company's economic analyst derives a demand efficient Combination? curve for the product of the company as ii) Determine the returns to scale for the following Q=10,000500PX+5M+5PY production functions Q=2K+3L,Q=0.5KL, and Where Q is the demand for the firm's novels Q=K0.3L0.2 PX is the price charged for the firm's novels (b) In the short run production function of a company, [4] M is the per capita income output (Q) is the function of one variable input labour (L) and is given by the following relationship. PY is the price of paperbacks by a competing publisher Q=650L2150L3 The initial values of PX=50,M=5000 and PY=60. Find I) Using this information, determine what effect a price (i) Labour unit to be employed corresponding to the increase would have on total revenues. point of inflexion. II) What will happen when the competing publisher reduces its price to 55 ? (ii) Labour unit beyond which Marginal Product of labour (MPL) remains less than the Average Product of labour (APL). (b) Explain how the burden of a commodity tax is shared between the buyers and sellers i) on 50:50 basis, ii) More on buyers and less on sellers, iii) Less on buyers and more on sellers, iv) Entirely on buyers, and (iii) Labour unit employed when Total Product of labour (TPL) is maximum. (iv) If the producer is employing 5 units of labour, what v) Entirely on sellers. will happen to MPL? 1. Answer the following questions. (a) The demand curve for bread is given by Q=500-10P.If the price increases from 10 to 15, what is the arc elasticity of demand? (b) Diagrammatically show the shut down point of a perfectly competitive firm? (c) Why a firm under imperfect market structure does not operate in inelastic portion of its Average Revenue curve? (d) What does it indicate if the income-price line shifts down on the vertical axis, horizontal axis end of it remaining the same? (e) Two goods X and Y are available for 5/kg and 4/kg respectively. If the consumer has an income of 200, write the budget equation and draw the budget line. (f) Explain the relationship among average revenue, marginal revenue and price elasticity of demand. (g) If the demand curve for product B shifts to the right as the price of product A declines, what can be inferred pertaining to the relationship between A and B