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  • Journalists' articles and costs analysis

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    Prabhat Mishra
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    This document analyzes the costs and profits of a publishing company with varying numbers of journalists. It shows that: 1) As the number of journalists increases from 1 to 10, the average fixed cost per journalist decreases while total costs and average variable and total costs increase. 2) Marginal cost is always lower than marginal revenue, so the company should keep adding journalists until marginal cost equals marginal revenue to maximize profits. 3) A scenario is presented where fixed costs are zero, showing average and total costs only increase with variable costs. Marginal cost is still lower than marginal revenue, indicating the company should add more journalists.

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    This document analyzes the costs and profits of a publishing company with varying numbers of journalists. It shows that: 1) As the number of journalists increases from 1 to 10, the average fixed cost per journalist decreases while total costs and average variable and total costs increase. 2) Marginal cost is always lower than marginal revenue, so the company should keep adding journalists until marginal cost equals marginal revenue to maximize profits. 3) A scenario is presented where fixed costs are zero, showing average and total costs only increase with variable costs. Marginal cost is still lower than marginal revenue, indicating the company should add more journalists.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    53 views4 pages

    Journalists' articles and costs analysis

    Uploaded by

    Prabhat Mishra
    This document analyzes the costs and profits of a publishing company with varying numbers of journalists. It shows that: 1) As the number of journalists increases from 1 to 10, the average fixed cost per journalist decreases while total costs and average variable and total costs increase. 2) Marginal cost is always lower than marginal revenue, so the company should keep adding journalists until marginal cost equals marginal revenue to maximize profits. 3) A scenario is presented where fixed costs are zero, showing average and total costs only increase with variable costs. Marginal cost is still lower than marginal revenue, indicating the company should add more journalists.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    No.

    of Fixed Cost per Variable Cost per Total Cost per


    Journalists Articles per Month Month Month Month Average Fixed Cost
    1 15 8000 3000 11000 533.33333333333
    2 29 8000 6000 14000 275.86206896552
    3 42 8000 9000 17000 190.47619047619
    4 54 8000 12000 20000 148.14814814815
    5 65 8000 15000 23000 123.07692307692
    6 75 8000 18000 26000 106.66666666667
    7 84 8000 21000 29000 95.238095238095
    8 92 8000 24000 32000 86.956521739131
    9 99 8000 27000 35000 80.808080808081
    10 105 8000 30000 38000 76.190476190476
    2 (A) Article Per month 92 Profit 2500

    1104 30000

    Office building &


    Utilities Cost (€) 8000 27.17
    Wage of Each
    Journalist (€) 3000 2500
    Ad Revenue Per
    Unit (€) 375
    Average Variable
    Cost Average Total Cost Marginal Cost Marginal Revenue Total Profit Total
    733.33 375
    206.89655172414 482.76 214.29 375
    214.28571428572 404.76 230.77 375
    222.22222222222 370.37 250.00 375
    230.76923076923 353.85 272.73 375
    240 346.67 300.00 375
    800
    250 345.24 333.33 375
    260.86956521739 347.83 375.00 375
    700
    272.72727272727 353.54 428.57 375
    285.71428571429
    600 361.90 500.00 375

    500
    Average Fixed Cost
    Average Variable Cost
    400
    Average Total Cost
    Marginal Cost
    300 Marginal Revenue

    200

    100

    0
    1 2 3 4 5 6 7 8 9 10
    No. of Fixed Cost per Variable Cost per Total Cost per
    Journalists Articles per Month Month Month Month Average Fixed Cost
    1 15 0 3000 3000 0
    2 29 0 6000 6000 0
    3 42 0 9000 9000 0
    4 54 0 12000 12000 0
    5 65 0 15000 15000600 0
    6 75 0 18000 18000 0
    7 84 0 21000 21000 0
    500
    8 92 0 24000 24000 0
    9 99 0 27000 27000 0
    400
    10 105 0 30000 30000 0

    300
    2(B) Article Per month 54 Profit 28

    200
    Office building &
    Utilities Cost (€) 0 28
    100
    Wage of Each
    Journalist (€) 3000 1500
    0
    Ad Revenue Per 1 2 3 4 5 6
    Unit (€) 250 4
    Average Variable
    Cost' Average Total Cost Marginal Cost Marginal Revenue Total Profit Total
    200 200 250
    207 207 214.29 250
    214 214 230.77 250
    222 222 250.00 250
    231 231 272.73 250
    240 240 300.00 250
    250 250 333.33 250
    261 261 375.00 250
    273 273 428.57 250
    286 286 Average Fixed
    500.00
    Cost 250
    Average Variable Cost'
    Average Total Cost
    Marginal Cost
    Marginal Revenue

    2 3 4 5 6 7 8 9 10

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