# SOLUTIONS TO END OF CHAPTER EXERCISES

Document Sample

```					SOLUTIONS TO SELECTED END OF CHAPTER EXERCISES

12.1   a.

Figure 12.1

b.   SRTC is concave for Q = 0 to Q = 25, convex for Q = 25 to Q → ∞, and has an
inflection point where Q = 25.
dSRMC
c.   SRMC is minimized where Q = 25, because         = 0 at this level of output.
dQ
12.3   a. and b.

Figure 12.2

12.5

Quan. of
Titanium SRTC   VC    FC      AFC      AVC      ATC      SRMC
Golf
Clubs
Produced
0      \$100   \$ 0    \$100     \$ --     \$ --     \$ --   \$ --
5       300      200         100       20     40      60      40
10       900      800         100       10     80      90     120
20      3,300    3,200        100        5    160     165     240
35      9,900    9,800        100      2.86   280   282.86    440
50     20,100   20,000        100        2    400     402     680
75     45,100   45,000        100      1.33   600   601.33   1,000
100     80,100   80,000        100        1    800     801    1,400
12.7   SRTC = 2Q 3 + 128

dSRTC
a.    SRMC =            = 6Q 2
dQ

SRTC 2Q 3 + 128          128
b.    ATC =         =           = 2Q 2 +
Q      Q                Q

c.    At min ATC, SRMC = ATC

128
6Q 2 = 2Q 2 +
Q
128
4Q 2 =
Q

4Q3 = 128

Q3 = 32

Q = 3.175

128
d.    Min ATC = 2 (3.175)2 +
.
3175

= 20.16 + 40.31 = \$60.47

```
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
 views: 0 posted: 2/12/2013 language: English pages: 3
How are you planning on using Docstoc?