COST AND REVENUE Question 2, Khalee LLC makes wall hangings and then sells them
ID: 2570197 • Letter: C
Question
COST AND REVENUE
Question 2, Khalee LLC makes wall hangings and then sells them door-to-doo Here is the relationship between the number of workers and Khaleejs output in a given day 0) Calculate the different costs and revenues for Khaleej LLC. (Show all calculations / working formula) (10 marks Output Total Total Profit Average Average Marginal (Units) cost revenue (OMR) variable total cost OMR) (OMR) cost cost OMR) (OMR) (OMR) 0 30 - 30 100 30 10 200 45 300 51 400 70 15 500 62 78 600 70 83 85 800 100 84 900 118 81 700Explanation / Answer
Total Revenue - Total cost = Profit ,ATC=TC/output,MC=Change in TC/Change in quantity,AVC=TVC/Quantity.
TFC + TVC = TC , in this question TFC is 30 at 0 units of output which remains constant.
so TVC Is calculated by TC-30
Output
(units)
Total
Cost
Total
Revenue
Average
Variable cost
Average
Total cost
Marginal
cost
Output
(units)
Total
Cost
Total
Revenue
ProfitAverage
Variable cost
Average
Total cost
Marginal
cost
0 30 0 -30 0 - - 100 40 30 -10 0.1 0.4 0.1 200 45 45 0 0.075 0.225 0.05 300 51 60 9 0.07 0.17 0.06 400 55 70 15 0.0625 0.1375 0.04 500 62 78 16 0.064 0.124 0.07 600 70 83 13 0.067 0.1166 0.08 700 85 85 0 0.079 0.1214 0.15 800 100 84 -16 0.00875 0.125 0.15 900 118 81 -37 0.098 0.1311 0.18