EMBA 60 Syndicate 10

Dewi Mayangsari 29118464

Novaldy Andharu B. 29118534
Pramudya Wicaksana 29118395
Yayan Bunyamin 29118415
Exercise 1
a. Explicit Cost?
Renting an office = $ 10.000
Hiring legal secretary = $ 20.000
Office Equipment Rent = $ 15.000
Purchasing the required service = $ 5.000

Total Explicit cost = $10.000 + $20.000 + $15.000 + $5.000 =

$50.000
c. Estimated TR = $100.000
Economic Cost =
b. The Economic Cost = Accounting Cost + Implicit Cost
$110.000
= $ 50.0000 + $ 60.000 Cost > revenue,
We suggest John McAuley to
= $ 110.000
re-consider whether he
should start or not because
the cost is higher than total
revenue.
 C.cEstimated TR = $100.000
Economic Cost = $110.000
Cost > revenue,
We suggest John McAuley to re-consider whether he should
start or not because the cost is higher than total revenue.
Exercise 15
  
=
= 60 – 12Q +

MC = d (TVC)
= d (60Q - 12 + )
= 60 – 24Q +3
    Breakeven Output
TR = TC
P.Q = TFC + AVC.Q
60(Q) = 100 + [(60 – 12Q + ).(Q)]
60 (Q) = 100 + 60Q - 12 +
0 = 100 - 12 +

Q = 3,412439
    When the firm maximizes its total profit
MR = MC
d(TR) = d(TVC)
d(60Q) = d (60Q - 12 + )
60 = 60 – 24Q +3
0 = – 24Q +3
 3 = – 24Q
3Q = 24Q
Q = 8