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bba103 assignment help! (1 Viewer)
- Thread starter jenyyy
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Skittled
What did the crab do?
What's the question? I did bba103 this time last year, and hated it, but looking back it was a lot of fun... ended up with a final mark of 82 = Distinction... need a hand?
omg please tell me ur godsent :uhhuh:
anyways the question's asking abt finding three alternative and equal areas of maximum profit for a monopolist. they give you a graph with MC, ATC, AR, MR drawn on and according to the lecturer - maximum profit is where MC = MR right? but thats one area - which are the other two?
they also ask to explain why the ATC curve reflecs no element of fixed cost and therefore can be regarded as a long run curve. the MC and ATC curves both project from the same position like 1/4 up the vertical axis (ie: cost and revenue). i thought that if ATC did not start at 0 on the graph - this means fixed costs are present? or is there something i forgot which applies to monopolies?
help.
anyways the question's asking abt finding three alternative and equal areas of maximum profit for a monopolist. they give you a graph with MC, ATC, AR, MR drawn on and according to the lecturer - maximum profit is where MC = MR right? but thats one area - which are the other two?
they also ask to explain why the ATC curve reflecs no element of fixed cost and therefore can be regarded as a long run curve. the MC and ATC curves both project from the same position like 1/4 up the vertical axis (ie: cost and revenue). i thought that if ATC did not start at 0 on the graph - this means fixed costs are present? or is there something i forgot which applies to monopolies?
help.
Skittled
What did the crab do?
Woah! Lots of BBA103 stuff forgotten. Had to look up a few things. Anyway...
I'd approach this question with a bit of focus. Instead of being awash with 'what do I do?" syndrome, ask yourself what hints they're giving. They say there are three areas of equal area, defined by either the origin of the XY axes, and/or points on the graph. So, If you could scan in the image and put it up, I'll see if I can give you specific hints, rather than just talking in theory...
MC = Change in total costs for adding one more unit
ATC = Total costs / unit.
<time passes>
..I've been sitting here for about 30 mins thinking for you, but I keep coming back to wanting to see the actual question. First off, see if this site (http://www.businessbookmall.com/Economics_24_Monopoly.htm) helps you. From memory, everything that's in the lectures is explaind better in the text (Economics for Today). Regarding your second question, look carefully at the definitions of the two, and don't glaze over if they give you a formula...
If not, get the questino up here (do they have it online?) and I'll take a look...
My apologies for not being able to help you out just yet!
(You could always get Alan (lecturer) to help you out.. he's pretty good, generally. Like most economists he's a bit cynical but nice enough. The tutors are hopeless, forget them.. go to the lecturer.)
I'd approach this question with a bit of focus. Instead of being awash with 'what do I do?" syndrome, ask yourself what hints they're giving. They say there are three areas of equal area, defined by either the origin of the XY axes, and/or points on the graph. So, If you could scan in the image and put it up, I'll see if I can give you specific hints, rather than just talking in theory...
MC = Change in total costs for adding one more unit
ATC = Total costs / unit.
<time passes>
..I've been sitting here for about 30 mins thinking for you, but I keep coming back to wanting to see the actual question. First off, see if this site (http://www.businessbookmall.com/Economics_24_Monopoly.htm) helps you. From memory, everything that's in the lectures is explaind better in the text (Economics for Today). Regarding your second question, look carefully at the definitions of the two, and don't glaze over if they give you a formula...
If not, get the questino up here (do they have it online?) and I'll take a look...
My apologies for not being able to help you out just yet!
(You could always get Alan (lecturer) to help you out.. he's pretty good, generally. Like most economists he's a bit cynical but nice enough. The tutors are hopeless, forget them.. go to the lecturer.)
how do i insert a picture..? HAHA
oh man.. is ther another way of contacting u.. add me to msn if u use that: jennyestherly@hotmail.com
oh man.. is ther another way of contacting u.. add me to msn if u use that: jennyestherly@hotmail.com
oh wait i figured it out!
and heres the questions:
the following diagram portrays a particular monopolist's long run demand and cost conditions:
1. label and explain three alternative and equal areas on maximum profit
2. explain why the ATC curve as depicted in this diagram reflects no element of fixed cost and therefore can be regarded as a long run curve
and heres the questions:
the following diagram portrays a particular monopolist's long run demand and cost conditions:
1. label and explain three alternative and equal areas on maximum profit
2. explain why the ATC curve as depicted in this diagram reflects no element of fixed cost and therefore can be regarded as a long run curve
Orange Juice
so worthless i am
fuck bba103 is so much harder than 102 and 111... my word its hard...
our textbook is el-shiz... and i got no idea how to do q3 and 6... the rest i kinda got the gist but not really..
our textbook is el-shiz... and i got no idea how to do q3 and 6... the rest i kinda got the gist but not really..
Skittled
What did the crab do?
1. label and explain three alternative and equal areas on maximum profit
2. explain why the ATC curve as depicted in this diagram reflects no element of fixed cost and therefore can be regarded as a long run curve
Will have to think about question 1...
Question 2, though; MC is how much producing one more unit costs you. Ie it's the cost of materials. Therefore, when you produce 0 units, your cost is 0. When you produce 1, it jumps up to point C, if point C is the point where MC meets the Y axis.
Average Total Cost USUALLY includes fixed costs. In that usual situation, as you produce more, the cost of the fixed costs is spread across your total output, reducing the average cost per-unit (ATC). This is the idea of economies of scale.
From there, ATC in THIS SITUATION doesn't include fixed costs because it starts at the same point as MC. If it reflected fixed costs (take a look in your textbook), it should start ABOVE MC, by a little bit, and at some point intersect MC. (ie this picture).
The way I see it, that's the only reason, and only place you can decide that ATC doesn't reflect fixed costs; in that it starts at the same place as MC, on the Y axis.
....hope that makes sense.. that's what I'd put down at the moment, anyway. I've got tomorrow off, I'll think about it more, then.
Feel free to add me to MSN; skittled@optushome.com.au, but it's not working at the moment.. will see if that can be sorted asap....
...is there a quesiton about production and rationality? ie how much should firm A, B and C produce?
2. explain why the ATC curve as depicted in this diagram reflects no element of fixed cost and therefore can be regarded as a long run curve
Will have to think about question 1...
Question 2, though; MC is how much producing one more unit costs you. Ie it's the cost of materials. Therefore, when you produce 0 units, your cost is 0. When you produce 1, it jumps up to point C, if point C is the point where MC meets the Y axis.
Average Total Cost USUALLY includes fixed costs. In that usual situation, as you produce more, the cost of the fixed costs is spread across your total output, reducing the average cost per-unit (ATC). This is the idea of economies of scale.
From there, ATC in THIS SITUATION doesn't include fixed costs because it starts at the same point as MC. If it reflected fixed costs (take a look in your textbook), it should start ABOVE MC, by a little bit, and at some point intersect MC. (ie this picture).
The way I see it, that's the only reason, and only place you can decide that ATC doesn't reflect fixed costs; in that it starts at the same place as MC, on the Y axis.
....hope that makes sense.. that's what I'd put down at the moment, anyway. I've got tomorrow off, I'll think about it more, then.
Feel free to add me to MSN; skittled@optushome.com.au, but it's not working at the moment.. will see if that can be sorted asap....
...is there a quesiton about production and rationality? ie how much should firm A, B and C produce?
aww u totally rock dude!
and yeh theres SOMETHING like that rationality question - i think?
they give you three different demand curves each representing how a certain aspect for car advertising affects the demand of the car (eg safety, style, motor performance) and you have 90K and u have to adopt the best advertising mix to generate the greatest demand?
is that rationality? haha
and yeh theres SOMETHING like that rationality question - i think?
they give you three different demand curves each representing how a certain aspect for car advertising affects the demand of the car (eg safety, style, motor performance) and you have 90K and u have to adopt the best advertising mix to generate the greatest demand?
is that rationality? haha
Skittled
What did the crab do?
That's rationality, yeah. I've found it good to understand how that works, since... has been very good working out how many hours I should work in order to maximise my youth allowance payments!
Skittled
What did the crab do?
Correct: Rationality is Totally on marginal cost. You're being rational while MC <= MR.
So, while spending $1 on advertising brings back $1 or more, it's rational to spend that $1. So, basically, if MC/MR is larger than 1, you're right. i used a spreadsheet (ie excel) because otherwise you'll spend all afternoon typing things into a calculator. Lots of people don't understand rationality, but it's easy once you get it.
So, while spending $1 on advertising brings back $1 or more, it's rational to spend that $1. So, basically, if MC/MR is larger than 1, you're right. i used a spreadsheet (ie excel) because otherwise you'll spend all afternoon typing things into a calculator. Lots of people don't understand rationality, but it's easy once you get it.
Skittled
What did the crab do?
Assuming the image you provided isn't drawn to scale, it's harder for me to work that out...
So; max profit area 1 where MC=MR
How about ATC=AR?
Really not sure. As said before, look up in your text... it should be there... Or, go see Alan McHarg?
(btw, for anyone in BBA103 who hates the people pushing through the doors as you're leaving price theatre (I used to have to do it too, when I did bba103), the people pushing past you are BUSL250 students, trying to get a seat: the university managed to overbook the theatre by about 30 students, and iLectures aren't offered, so everyone needs/wants to be there, hence the fullness.... )
So; max profit area 1 where MC=MR
How about ATC=AR?
Really not sure. As said before, look up in your text... it should be there... Or, go see Alan McHarg?
(btw, for anyone in BBA103 who hates the people pushing through the doors as you're leaving price theatre (I used to have to do it too, when I did bba103), the people pushing past you are BUSL250 students, trying to get a seat: the university managed to overbook the theatre by about 30 students, and iLectures aren't offered, so everyone needs/wants to be there, hence the fullness....
)
Orange Juice
so worthless i am
jezzmo, why are you up so early?
clairegirl
the name's Anne!
hEY guys question 1. A.2
Calculate the amount of shortage or surplus who gains and who loses? if the price was 25$. In terms of economic surplus, who gains and who loses?
i know there would be a shortage of quantity supplied by the produces and an excess demand in the quantity demanded by consumers...
So that means the consumers would be at an advantage because they get the cheaper price.... but it also means that they'r aggregate demand isn't met, thus putting them at a disadvantage...
whereas with suppliers
they produce much less at 25 bucks a unit, so thus they'de be at a disadvantage because of the price but then again they'de be at an advantage because all of their "products" are sold because theres an excess in demand...
urrh guys help me out on this??
and how do u calculate it ?
so far i got
45*5/2= 112.5 for consumer surplus
(200-25)*45/2 = 437.50 for producer surplus
(i dont even know if u do these calculations)
so going by these, this must mean that the producer gains in this case.
Is this true?
Calculate the amount of shortage or surplus who gains and who loses? if the price was 25$. In terms of economic surplus, who gains and who loses?
i know there would be a shortage of quantity supplied by the produces and an excess demand in the quantity demanded by consumers...
So that means the consumers would be at an advantage because they get the cheaper price.... but it also means that they'r aggregate demand isn't met, thus putting them at a disadvantage...
whereas with suppliers
they produce much less at 25 bucks a unit, so thus they'de be at a disadvantage because of the price but then again they'de be at an advantage because all of their "products" are sold because theres an excess in demand...
urrh guys help me out on this??
and how do u calculate it ?
so far i got
45*5/2= 112.5 for consumer surplus
(200-25)*45/2 = 437.50 for producer surplus
(i dont even know if u do these calculations)
so going by these, this must mean that the producer gains in this case.
Is this true?
Skittled
What did the crab do?
Quite simply, three conditions exist:
1) Perfect Balance: Demand = Production
2) Surplus: Production > Demand
So, unsold goods push the price down so that all are sold. Consumer is at an advantage, Producer at a disadvantage. Aggregate demand is met AND EXCEEDED. This is the production > Demand part: if AG wasn't met and exceeded, it'd be a shortage instead of a surplus.
3)Shortage: Demand > Production
Aggregate demand is not met (D > P), thus Lack of product pushes price up: consumer at a disadvantage, producer at an advantage.
To answer the specific question, I'd need to see the graph they give you to work it out, because it'll have something to do with where the D curve lies relative to everything else.
<everything in this post and this entire thread is from memory of 12 months ago. Skittled cannot be held liable for any inaccuracies in the information but is doing his best to help you out because he wished he had it when he was doing BBA103>
1) Perfect Balance: Demand = Production
2) Surplus: Production > Demand
So, unsold goods push the price down so that all are sold. Consumer is at an advantage, Producer at a disadvantage. Aggregate demand is met AND EXCEEDED. This is the production > Demand part: if AG wasn't met and exceeded, it'd be a shortage instead of a surplus.
3)Shortage: Demand > Production
Aggregate demand is not met (D > P), thus Lack of product pushes price up: consumer at a disadvantage, producer at an advantage.
To answer the specific question, I'd need to see the graph they give you to work it out, because it'll have something to do with where the D curve lies relative to everything else.
<everything in this post and this entire thread is from memory of 12 months ago. Skittled cannot be held liable for any inaccuracies in the information but is doing his best to help you out because he wished he had it when he was doing BBA103>
boinkBOINK
hustler
- Joined
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i dont know how u got a D in this steve
im hopin to scrape in a P
so hardd
hardest sub ive done imo
im stuck on q3 onwards
meh
im hopin to scrape in a P
so hardd
hardest sub ive done imo
im stuck on q3 onwards
meh
how convenient...
demand function is P = 100 - 0.005Q
Supplier has to pay $20 per item for production, and another $20 for royalty.
What price will maximise the supplier's profit? How much profit will the supplier earn? What will be the total royalty payment earned?
You don't think they'll notice a 1000 words over the limit do you?
demand function is P = 100 - 0.005Q
Supplier has to pay $20 per item for production, and another $20 for royalty.
What price will maximise the supplier's profit? How much profit will the supplier earn? What will be the total royalty payment earned?
You don't think they'll notice a 1000 words over the limit do you?
Last edited:
boinkBOINK
hustler
- Joined
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lol
"no"
i need help on q6 =\
mang
"no"
i need help on q6 =\
mang