Description
Coursework Task
Use algebra, calculations using Excel formulas and worksheets, and no derivatives please, when solving the following coursework questions
Group IT Coursework: Costs, revenues, and profits
Given the total cost (TC) schedule and demand (D) schedule…
1. Assign values to the parameters a, b, c, e, and f to formulate typical cost and demand schedules.
a. Replace each of the parameters with an appropriate numerical value.
b. What values do you assign to each parameter, and why?
c. Describe and comment on what each parameter does to the equation (i.e., does it increase, decrease it, does it depend on quantity, etc.).
d. Approximately 100 words.
2. Create an Excel worksheet with columns calculating values based on quantity (Q) for total revenue (TR), TC, profit (p), D, marginal cost (MC), average cost (AC), average revenue (AR), and marginal revenue (MR).
a. For the column with values for Q, depending on your assigned parameters, you may want to use 0.1 to 0.5 incremental increases in Q. Please adjust the increments as needed.
b. You should provide a column that calculates each of the above-mentioned equations.
c. Be sure to provide columns that are long enough (include enough data points) to create an appropriate graph.
d. No words needed for this part, but feel free to describe as needed.
3. Create a graph depicting AR, D, MR, AC, MC.
a. Label each schedule in your graph, your axes, and any points or intersections of interest.
b. Comment on and label your graph in detail. What do you see? How do the schedules interact? Where will this producer produce?
c. Approximately 100 – 200 words.
4. Create a graph depicting TC, TR, and p.
a. Label each schedule in your graph, your axes, and any points or intersections of interest.
b. Comment on and label your graph in detail. What do you see? How do the schedules interact? Where will this producer produce?
c. How does this graph relate to your previous graph? Be sure to label any points of interest from the previous graph on your new graph.
d. Approximately 100 – 200 words.
5. Now change the assigned parameter to c (leaving the four other parameters unchanged) and redraw your two graphs with the new equations.
a. What do you notice happens to the graphs? Why is this?
b. Hint – you may need to tweak your change to parameter value c to depict a change drastic enough to see.
c. Approximately 100 words.
6. Calculate the elasticity along the demand curve.
a. Comment on the values you calculate.
b. This should be displayed as a column calculation and should also be labelled on a graph with just your demand curve (i.e., no other schedules).
c. Approximately 50 words.
Guidance
There is no word count for the report, but you are not expected to write a vast amount. Please provide brief analysis and comments to support your decisions and visual displays. Typically, students will provide this analysis just below or alongside a visual display (worksheet and/or graph). There is guidance about how much to approximately write for each part of the coursework listed in the original brief above. All visual displays should be created using Excel.
The final report should be in Word or PDF format; please cut/paste your Excel worksheets and graphs to the document.
Also could each step be explained step by step in a separate document.
Thanks
