Jalal builds computers using parts and sells them at Rs 20-000 - His costs for different production levels are tabulated below- beginarray - c - c -WhineQuantity - Total Cost - Rs llhline 1 - 30-000 Wllhline2 - 50-000 lilhline 3 - 60-000 IWhline 4 - 75-000 lIVhline5 - 95-000 lllhline6 - 1-20-000 lilhline8 - 190-000 Ilvhline array How many computers will Jalal supply at a price of Rs 20-000 -A- 2B- 3C- 5D- 6

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Standard XI

Economics

Supply Schedule

Jalal builds ...

Question

Jalal builds computers using parts and sells them at Rs 20,000. His costs for different production levels are tabulated below.

$\begin{matrix} Q u a n t i t y & T o t a l C o s t (R s) 1 & 30, 000 2 & 50, 000 3 & 60, 000 4 & 75, 000 5 & 95, 000 6 & 1, 20, 000 7 & 150, 000 8 & 190, 000 \end{matrix}$

How many computers will Jalal supply at a price of Rs 20,000?

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Solution

The correct option is C
5

Jalal supplies a quantity which maximizes his profit. This occurs when MC=MR=P.
Let us tabulate the marginal cost corresponding to each level of output.

$\begin{matrix} Q & T C (R s) & M C (R s) 1 & 30, 000 & 30, 000 2 & 50, 000 & 20, 000 3 & 60, 000 & 10, 000 4 & 75, 000 & 15, 000 5 & 95, 000 & 20, 000 6 & 1, 20, 000 & 25, 000 7 & 150, 000 & 30, 000 8 & 190, 000 & 40, 000 \end{matrix}$

Here, MC=MR when the quantity is 5. Hence, Jalal will supply 5 computers at a price of Rs 20,000.

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Jalal builds computers using parts and sells them at Rs 20,000. His costs for different production levels are tabulated below. QuantityTotal Cost (Rs)130,000250,000360,000475,000595,00061,20,0007150,0008190,000 How many computers will Jalal supply at a price of Rs 20,000?