Assignment 1.docx

Engineering Economics Assignment 1 _BCV 8A For understanding the feasibility and expected returns of a project first it is crucial to understand and predict the expected cost of the project. In the short run a project may face different costs depending on the nature of the project. Following figure shows family of short run costs.

Questions: 1. Explain each cost curve shown in above figure 2. Explain the relationship between AVC &ATC and MC&AVC 3. How firm will determine efficient level of production based on above cost behavior?

Instructions: 1. Assignment will be marked as per HEC plagiarism policy. Any draft containing more than 17% plagiarism will be marked ZERO. 2. Assignments copied from other students will be marked ZERO. 3. Your draft should not exceed from two pages (including figure), Typed in Times New Roman, 12 font size, 1.15 line spacing, and justified text. 4. Must include your name and registration number in header of your draft, and give your registration number as file name. 5. Upload your assignment on/before Sunday, 31st March 2019 on your course portal. Late and by hand submission will not be marked.