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2nd Assignment
Managerial Economics
Please submit the hand written assignment on 22nd September before 12:30 PM.
Answer all the five questions.

Q1. The output and total cost data for a firm is given below. Work out the following costs and
represent them in graph:
Units of Output
Total Cost Rs.

0
120

1
180

2
200

3
210

4
225

5
260

6
330

Q2. Suppose that labour cost Rs. 10 per unit and capital cost Rs. 5 per unit. The least cost
combination of capital and labour are as follows:
Output
Labour
Capital

100
5
10

200
6
12

300
8
14

400
10
20

500
13
28

600
18
38

700
24
54

a. Prepare the table showing long run total cost, long run average cost and long run
marginal cost.
b. Graph these cost functions
c. Over what range of output do economies of scale exist? Over what range are
diseconomies of scale indicated?
Q3. Discuss various pricing strategies?
Q4. Explain short run cost and production function with the help of graph and hypothetical data?
Q5. What is break-even point? How it is different from economies of scale and economies of scope?