BUS 135

Assignment - 2
BUS - 135
Section – 07

Group Members Info

NAME ID
Shibly Sadik 1620039030

Submitted to,
Dr. Md. Sabbir Alam,
Lecturer,
Department of Management.
North South University.
PART 1:

1. Write down the significance of this course Applied Business Mathematics in your
discipline.

Answer:

For the most part, we consider mathematics as a science subject. But mathematics is an art
form in which we will learn the art of living. Mathematics gives us Logical, analytical,
calculative capacities and give support in way of life choices and issues. Presently if we
consider commerce stream, not all, but a major portion of mathematics is included in day by
day commerce calculations and estimations. A few branches of mathematics like Statistics
and Operational Arithmetic are coordinates portion of the business. Indeed, the concept of
money, which may be a base of business comes from mathematical calculations and
equations. In your commerce subject, you'll be having a few income costs and evaluated cost
calculations in which differential and integral parts of mathematics are included. Studying
mathematics gives you a base for such concepts and it'll be working as a help in your other
subjects as well. Also, it'll open up more career fields for a business student.

2. Briefly discuss “Online education” the advantages, limitations, challenges, and

recommendations based on your experience.

The online strategy of education can be a highly effective elective method of education for
the understudies who are developed, self-disciplined and motivated, well organized and
having high degree of time administration skills, but it is an improper learning environment
for more subordinate learners and has difficulty expecting responsibilities required by the
online courses.
Discuss below online education advantage:

Convenience: This comfort is in connection with the study area, time, course length, etc.

Closely related to adaptability is the convenience of online courses. Students now and then
essentially favor completing their instruction from the comforts of home. This limits the need
to travel, which implies time and cost savings. Also, students who seem effortlessly get
diverted by the sounds and interaction of a regular classroom can set aside calm space for
study at home. For schools, Web offerings grow class access to students outside of the nearby
market who need to require classes online.

Flexibility:

Flexibility may be a major good thing about online instruction. Students who may not have
the capacity to take part in traditional classes can frequently take online classes. A full-time
worker returning to school, for the occasion, can plan reading, writing, and test time within
the nights or on ends of the week. Furthermore, understudies may mix online and
conventional classes to fill out a plan when they work part-time or have other life requests.

Technology:

You'll be able to work on the course almost anywhere you've got a computer to get to. Online
courses allow learning new technologies and practicing the utilize of office software, Web,
etc.

Discuss below online education limitation:

Limited social interaction:

A common limitation of online instruction is limited social interaction. Whereas online

students frequently lock in peers in online talks and connected with instructors through mail,
this doesn't reproduce the face-to-face experiences in a conventional classroom. The casual
social intelligent with peers before and after classes helps instill a sense of community and
having a place. You too have more coordinate connections with instructors and can inquire
questions amid course to extend experiences on a point. Numerous classes too utilize
understudy work bunches to create collaboration skills.

Lack of structure:

Self-disciplined students can advantage from the adaptability and comfort of online classes,
but the need of formal structure can be a entanglement for undisciplined or unmotivated
students. You do not have a standard meeting time and you do not have regular, coordinate
interaction with instructors and peers who can remind you of assignments and push you to
work harder. Online understudies who need self-discipline can drop behind on assignments,
fail to study enough by test due dates and eventually suffer because of a lack of activity in
locks in educates by means of email or phone.

Technology Cost and Scheduling: Some of the key elements are –

 Computer boot-up time, software, and connection to Internet

 Students may be required to learn new or improved computer and troubleshooting

 skills. Additional cost of high-speed Web

challenges of online education:

Comparing face-to-face learning with online learning brings forward critical insufficiencies
within the online mode such as need of human connect, absence of openings of collaborative
learning, teacher supervision and the foremost dazzling being need of openings for hands-on
learning in complex subjects.

Quality online learning:

The definition of Quality instruction has experienced a transformation within the online
mode, and presently it includes the ICT components that help overcome all the challenges
have come about due to the physical distance between the instructor and the learner.

Plan Active Learning:

It’s not a lecture classroom online, It’s a dynamic learning classroom online. It has been
watched that some of the time to overcome the lack of their physical presence instructors go
into long winding clarifications of the concept in an internet course, clearing out learners
detached, bored, and eventually diverted.

Recommendation for online education:

Knowing learning online gives an opportunity to convert instruction, I was or maybe

disappointed as I listened from different people engaged in this work. In numerous cases they
were doing trade as usual...just online. It appeared they were not tackling the genuine control
of this medium. However, as an imaginative teacher I know that we regularly got to take after
the movement of doing things we've continuously drained a unused stage, at that point move
to doing things differently in a unused stage, and at long last to doing diverse things in this
modern stage.

1. Online learning classes should be more interesting:

Online learning has at long last gotten a few legs and it’s approximately time, but
what amazes me is that they’re not advertising more curiously courses. In huge
portion they’re fair advertising the same opportunities available in conventional
school settings. Let’s uncover students to modern opportunities that are missing in
classroom.
2. Online learning materials should be shared:

Individuals all over the world are selfishly creating marvelous online learning content.
Selfish since they’re not sharing. Aren’t we one country? Don’t we need to do what’s
best for all? At that point why are schools and areas accumulating their materials?
Why are we all doing the same thing over and over? Why are we continuously
wasting money and reevaluating the wheel??? In a few cases, it never indeed
happened to people that they seem or ought to or be sharing.

3. Online learning students should be connected

Online learning is online and we’re teaching a part of the same course at the same
time to students all over the world. The online learning world has to learn a lesson
from social media and enable those pursuing the same interface to connect.
Discussions are more vigorous and learning is more significant when the numbers of
other instructors and students you'll be able interface to and share with is increased.
Let’s delete the artificial lines of conventional tutoring and let online learning give an
opportunity for students to connect.
Part 2:

1. The total cost function of a firm is given by C = 0.04 q3−0.9 q 3 +10 q+10 .
Find the average cost (AC), Marginal cost (MC), Slope of (AC), Slope of
(MC) and the Value of at which average variable cost is minimum.

Ans:
Given C = 0.04 q3−0.9 q 3 +10 q+10

c 0.04 q 3−0.9 q 3+ 10 q+10 2 10

Average cost (AC) = = =0.04 q −0.9 q +10+
q q q

dc d
Marginal cost (MC) = = (0.04 q3−0.9 q3 +10 q+10)= 0.12q – 18q + 10
dq dq

d d 10
Slope of AC =
dq
( AC )=
dq(0.04 q 2−0.9 q+ 10+
q )
=0.08 q−0.9

d d
Slope of MC = ( MC ) = ( 0.12 q 2−1.8 q+10 )=0.24 q−1.8
dq dq

Average variable cost is minimum, the slope of AVC curve is zero

Total cost, C = 0.04 q3−0.9 q 3 +10 q+10

Variable cost = 0.04 q3−0.9 q 3 +10 q , fixed cost = 10

variable cost 0.04 q3−0.9q 3 +10 q

Therefore, AVC = = =0.04 q ²-o.9q+10
q q

d d
( AVC )= ( 0.04 q2 −0.9 q+10 ) =0.08 q−0.9
dq dq

Now 0.08q-0.9=0

0.9
q= =11.25
0.08

d2 ( d
2
AVC )= ( 0.08 q−0.9 )=0.08>0
dq dq

Therefore, when q=11.25, average variable cost is minimum [Ans]

2. A company has to manufacture 36000 units of an item per year. It costs Tk.
250 to make the factory ready for a product run of the item regardless of
units x produced in a run. The cost of material per unit made is Tk. 5 and it
x
costs 50 paisa per year for each unit for storing on the average inventory ( ¿
2
in hand. Determine the total cost and find the economic lot size, i.e., value of
for which is minimum.

Ans:

Total cost(c)= Fixed cost(FC) + Variable cost (VC)

C = FC+VC
C = FC+OC+SC
250 ×36000 x
C = ( 5 ×36000 ) +
x ()
+ 0.50 ×
2
250× 36000 1 x
C = 180000+ + ×
x 2 2
250× 36000 x
C= +180000+ [shown]
x 4

250× 36000 x x
Here C = +180000 + =9000000 x−1+180000+
x 4 4

dc 1
=−9000000−2 +
dx 4

d2 c −3
2
=18000000 x
dx

For maximum or minimum,

dc
=0
dx

−2 1
-9000000 x + =0
4

9000000 1
+ =0
x² 4

1 9000000
= =¿ x 2=36000000 => x²=(6000)²
4 x²
¿> x=6000
then ,
d ²c 18000000 18000000
=18 000000 x−3= =
dx ² x³ (6000) ³

= 0.000083, which is positive. So the cost function is minimum at x = 6000

 ∴ require economic lot ¿ 6000 units [Ans]

3. In monopolistic competition producers must determine the price that will

maximize the profit. Assume that a producer offers two different brands of a
product for which the demand function are Q1 = 14 – 0.25 p1 ;Q 2=24−0.5 p 2 ;
; and the joint cost function is TC = Q 21 +Q 22 +5Q 1 Q 2. Determine the profit and
profit maximizing level of output.

Ans:

The profit-maximizing level of output, the price that should be charged for each
brand, and the profits are determined as follows:

First, establish the profit function π in terms of Q1 and Q2 since π = total

revenue(TR) minus total cost(TC) and the total revenue for the firm is P1 Q1 + P2 Q2 the
firm’s profit is

π=P1 Q 1+ P 2 Q 2−TC

π=P1 Q1+ P 2 Q2−(Q21+ Q22+5 Q1 Q 2)

π=( 56−4 Q 1 ) Q 1+ ( 48−2Q 2 ) Q 2−Q 21−5 Q 1 Q 2−Q 22

¿56Q1−5 Q21 +48 Q 2−3 Q22−¿ 5 Q 1 Q 2

Then maximum by the familiar rules:

π 1=56−10 Q1−5 Q 2=0

π 2=48−6 Q2−5 Q1=0

Q 1=2.75∧Q 2=5.7

Take the second derivative π is maximized:

π 11=−10 π 22=−6 π 12=−5=π 21

2
With both second direct partials negative and π 11 π 22> ( π 1 2 ) ,the function is maximized at the
critical values,
Finally, Q 1=2.75∧Q 2=5.7 to find the profit-maximizing price.

P1=56−4 ( 2.75 )=45

P2=48−2 ( 5.7 ) =36.6
Price should be set at $45 for brand 1 and $36.6 for brand 2.

2 2
π=45 ( 2.75 )+ 36.6 (5.7 )−( 2.75 ) −5 ( 2.75 )( 5.7 ) −( 5.7 ) =213.94 [Ans]

4. Minimize costs for a firm with the cost function c=5 x 2 +2 xy +3 y 2 +800
subject to the production quota x+y = 39 . Also estimate additional cost if the
production quota is increased to 40.

Ans:
c=5 x 2 +2 xy +3 y 2 +800+ λ (39−x− y )
c x =10 x +2 y−λ=0
c y =2 x +6 y−λ=0
c λ=39−x− y =0

∴ x= 13, y=26, λ=182∧c =4349

Since λ=182, an increased production quota will lead to additional costs of

approximately 182.
[Ans]

5. The marginal cost of production of a firm is given as C'(q)= 5 + 0.13q. Further,

the marginal revenue is R'(q)=18. Also it is given that C(0)=Tk. 120. Compute the
total profits.

Ans:
For maximum profits, marginal cost=marginal revenue.

i.e., C'(q)=R'(q)⇒5+0.13q=18⇒q= 13 =100 0.13

Also P(q) = ∫ R' (q) dq − ∫ C' (q)dq = R(q)− C(q)

Now R(q)=∫R'(q)dq=∫18dq=18q+k 1, k 1 is a constant.

Put k1 = 0, as under pure competition, total revenue =Price×quantity.

∴R(q)=18q and C(q)=∫C'(q)dq=∫(5+0.13q)dq=5q+0.13+q2 +k2 k2 is a

constant. From the information C(0)= Tk. 120, we get

 0.13
C(0)=5×0+ ×0+k2 =120⇒k2 =120
2

0.13 2
∴C(q)=5q+ q +120=5q+0.06q 2 +120
2

Hence profit, P(q)= R(q)−C(q)=18q−5q−0.065q 2 −120=13q−0.065q 2 −120

∴ when q=100, total profits is P (100) =13−100−0.065(100)2 −120

=1300−650−120=Tk530 [Ans]