Submission date: 04/06/2016 E.
ASSOSA UNIVERSITY
College of Agriculture and Natural Resource
Department of Agricultural Economics
Mathematics for economist group assignment for 3rd year AgEc students (20%)
1. Given the average cost function AC= q2-4q+214, find the marginal cost (MC) function?
2. Suppose a revenue function R is given by R(x)= 40x-x2 , for 0<x<40.
Find the marginal revenue at x =10.
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c( x) x 2 4 x 57
3. Given the total cost function as 5 and the price is given by
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p( x) (36 x)
4 , find the marginal cost and the marginal revenue.
4. Suppose the demand q and price p for a certain commodity are related by the equation
p = 60-2q ( for 0 q 30 )
a) Express the elasticity of demand as a function of q.
b) Calculate the elasticity of demand when q =10. Interpret your answer
5. Find the relative extrema of the following functions
a) f(x) = x3 – 6x2 + 9x +1 b) f(x) = x4 + 2x3 – 3x2 – 4x + 4
6. Use second derivative test to find the relative maxima and minima for each function
below.
a) f(x) = x3 – 6x2 + 9x + 1 b) f(x) = 1/6x6 – 4x5 + 25x4
7. Find the stationary values of the following functions by using the Nth derivative test:
a) f(x) = (x-2)4 b) f(x) = (3-x)6 + 7
8. If the relationship between price (birr per unit) and the demand Q (units per week) is
given by P = 1,296 – 0.12 Q2 , 0 < Q < 80. The weekly revenue can be approximated by
R(Q) = PQ = 1296 Q - 0.12Q3 , 0 < Q < 80
a) Find the relative extrema for the revenue function.
b) Find the relative extrema for the profit function.
9. Given the cost function c (x) = 1,600 + 0.25x2, where x is the number if items
produced, find the minimum average cost?
10. A company manufactures and sells x transistor radios per week. If the weekly cost and
Price-demand equations are c(x) = 5,000 + 2x P = 10 – 0.001x, 0 x 10,000
Find a) the maximum revenue b) the maximum profit
11. The total cost of producing x units per month is given by C (x) = 4,000 + 10x + 0.1x2
Find the minimum average cost.
12. Assume that the total cost of producing a certain commodity x is C ( x) x 3 5 x 162
a. Find the level of output x at the minimum value of the average cost.
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Submission date: 04/06/2016 E.C
b. Find the level of output x which equates the AC and MC
13. A manufacturer can produce tape recorders at a cost of $20 apiece. It is estimated that if
the tape recorders are sold for x dollars apiece, consumers will buy 120-x of them each
month. Use calculus then determine the price at which the manufacturer's profit will be
the greatest.
14. The total cost function of producing a certain commodity is given as follows:
C(Q) = 2Q2 + 5Q + 15
a. Find the average cost function b. Find the marginal cost (MC) function
15. The total revenue from the sale of x units of a commodity is
R(x) = 50 x – 0.05x2
a. Find the marginal revenue function
b. What is the value of the marginal revenue at x = 400
16. If the demand function is given as follows
4000
Q ,
0.1 p 1 10 p 70, where Q is the demand and p is price per unit,
dQ
a) Find dp
dQ
b) Compute dp when the price is 90.
c) Compute the price elasticity of demand at P = 90
17. For the total cost function C(Q) = Q3-5Q2 + 60Q
I. Find the average cost function II. Find the minimum average cost
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18. Given the total revenue function R(Q) = 4350Q-13Q and the total cost function
C(Q) = Q3-5.5Q2 + 150Q + 675
a. Find the critical value(s) of the profit function
b. Calculate the maximum profit (Check by using second derivative test)
19. If the demand function is given by Q = 36-2p, find the marginal revenue function
20. The total revenue and cost function of a firm are given as follows
R(Q) = 1400Q - 7.5Q2
C(Q) = Q3- 6Q2 + 140Q + 750
a. Use the MR-MC approach to find the level of output that maximizes profit.
b. Check the second order conditions