MATDCB1 Tutorial 7 Section 11.3 & 11.
4
Most of these questions are from the textbook problems in your prescribed textbook. The numbering is
different.
1. Given the cost functions below (in dollars), find the marginal cost at the given value of q.
(a) c = 0.2q 2 + 4q + 50; q = 10
(b) c = q 2 + 50q + 100; q = 16
600
2. Given the average cost functions c̄ = 0.02q + 3 + (in dollars per unit), find the marginal cost when
q
q = 40.
1
3. The total revenue (in dollars) as a function of q is given by r = q(25 − 20 q). Find the marginal revenue
when q = 10, q = 20 and q = 100.
4. Differentiate
(a) f (x) = (4x + 1)(6x + 3)
(b) f (x) = (3x − x2 )(3 − x − x2 )
(c) y = (x − 1)(x − 2)(x − 3)
−5x
(d) H(x) =
5−x
x3 + x2 + 1
(e) f (x) =
x2 + 1
5. Suppose that a country’s consumption function is given by
√ √
16 I + 0.8 I 3 − 0.2I
C= √
I +4
where I and C are expressed in billions of dollars. Find the marginal propensity to consume and the
marginal propensity to save when the national income is I = 36.
6. Suppose that a country’s consumption function is given by
√ √
9 I + 0.8 I 3 − 0.3I
C= √
I
where I and C are expressed in billions of dollars. Find the marginal propensity to save when national
income is $25 billion.