ECO201e_JUL_2018_Exam Paper.pdf - Adobe Acrobat Reader DC X File Edit View Window Help Home Tools ECO201e_JUL_2018... x (? A Sign In 3 / 6 + 75% Share Question 2 Search 'Edit Image' (a) DEH Corporation operates a car rental business, with a fleet of 100 cars for rental. DEH leases cars from the manufacturer for one year at a cost of $12,000 Export PDF per car. Cars are returned to the manufacturer when the lease expires. The lease fee is non-refundable and leases cannot be ended early. DEH leases all cars at the same time, and the number of cars under lease cannot be changed during the Adobe Export PDF lease year. The number of cars can be varied at the end of each lease year. Convert PDF Files to Word DEH pays staff commissions to manage the rental cars. It costs $200 in staff or Excel Online commissions for each car rented for one month. The unit of production Q is one car rented for one month. There are no staff costs if there are no rentals. The Select PDF File table below illustrates the commission cost concept. Costs can exceed the figures provided in the table, that is, you must understand how to compute the ECO201e_JU... Paper.pdf X cost for Q = 5. 6, etc. Total Staff Number of Cars Number of Months Q Convert to Commission Costs Rented each Car Rented For $200 Microsoft Word (*.docx) $400 $400 Document Language: $800 English (U.S.) Change (i) Write the short-run and long-run total cost as a function of Q for DEH Corporation. Assume the short-run is a period of one month. The long run is a period of more than one year. (Hint: When accounting for car leasing costs, assume that the car can be Convert rented out for all 12 months in the year.)| (5 marks) (11) In the short-run, what is the lowest price DEH Corporation can accept for one unit Q of car rentals? Explain your decision to DEH management. Create PDF (5 marks) Edit PDF (iii) Graph the short-run and long-run marginal cost function for DEH corporation, as a function of Q from 0 to 200. Also graph the demand curve Q = 2500 - 10Q and the marginal revenue curve for DEH as a Create, edit and sign PDF monopolist. Label your graph accurately. Please note there may be a forms & agreements quantity constraint in the short-run (5 marks) Start Free Trial Type here to search X W N 9 ~ DO () ENG 2:40 PM 1/5/2020