INR 250, For A Business Owner, Knowing Their Cost Of Production

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Business Economics

Q1. Complete the given table by showing the calculation/Steps for marginal utility. Also, enumerate the relationship between Total utility and marginal Utility.

Shirt (units) Total Utility Marginal Utility
1 22
2 43
3 63
4 81
5 97
6 111
7 123
8 133

Q2. Anika is working in “Footon ltd Company” that manufactures formal and informal shoes for both men and women. It is observed that for the last few years, the sales figures are fluctuating and there are no vivid reason for the same. Anika’s manager have asked her to prepare a short notes on the importance of forecasting. Also her manager wants to know if implementing sales force composite and Delphi method can be useful for their Organisation?

Q3a. “For a business owner, knowing their cost of production is a vital step in creating and maintaining a profitable business. “With reference to the above statement explain Business Cost, Opportunity cost and Social cost with example.

Q3b. “Economies of scale are cost advantages reaped by companies when production becomes efficient “With reference to the given statement explain what do you understand by Economies of scale and elaborate on any two types of Economies of scale.


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