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National University of Modern Languages, Rawalpindi: Assignment # 1

This document contains a 3 question assignment for a Software Engineering Economics class at the National University of Modern Languages in Rawalpindi, Pakistan. The assignment asks students to (1) describe why marginal analysis is important, (2) calculate the marginal cost of ice cream scoops that increase in price per additional scoop, and (3) determine if two brothers should open a new franchise based on estimated $10 million in expenses and $3 million annual profit increase over 5 years.

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23 views

National University of Modern Languages, Rawalpindi: Assignment # 1

This document contains a 3 question assignment for a Software Engineering Economics class at the National University of Modern Languages in Rawalpindi, Pakistan. The assignment asks students to (1) describe why marginal analysis is important, (2) calculate the marginal cost of ice cream scoops that increase in price per additional scoop, and (3) determine if two brothers should open a new franchise based on estimated $10 million in expenses and $3 million annual profit increase over 5 years.

Uploaded by

student ww
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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National University of Modern Languages, Rawalpindi

Subject: Software Engineering Economics

BS SE - 1

Instructor: Ms. Sobia Shafiq

Assignment # 1

Q1. Describe why it is important to perform marginal analysis? [3]

Q2. Explain Marginal Cost. Imagine that you’re out getting ice cream with your friends or
family. You can choose whether to buy one, two, or three scoops of ice cream. One scoop costs
$5.00, two scoops cost $8.00, and three scoops cost $11.00. What is the marginal cost for each
scoop of ice cream [3]

Q3. Two brothers own a business and are considering to open a new franchise. They estimate
that the project would cost $10 million in expenses and that their profit would increase by $3
million per year for the next 5 years. What should be their decision about opening of a new
franchise and why? [4]

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