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ME Assignment

This document is a mathematical economics assignment for third year economics students containing 11 questions. It provides instructions for completing and submitting the assignment, with a due date during the final exam period. The questions cover a range of mathematical economics topics, including differentiation and integration of functions, partial derivatives, cost and production functions, demand functions, profit maximization, and utility maximization using Lagrange multipliers. Students are asked to show their work clearly and not copy answers from each other.

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Roba Jirma Boru
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263 views2 pages

ME Assignment

This document is a mathematical economics assignment for third year economics students containing 11 questions. It provides instructions for completing and submitting the assignment, with a due date during the final exam period. The questions cover a range of mathematical economics topics, including differentiation and integration of functions, partial derivatives, cost and production functions, demand functions, profit maximization, and utility maximization using Lagrange multipliers. Students are asked to show their work clearly and not copy answers from each other.

Uploaded by

Roba Jirma Boru
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Mathematical Economics Assignment for Third Year Economics 2014/2022

MADDA WALABU UNIVERSITY


COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ECONOMICS
MATHEMATICAL ECONOMICS ASSIGNMENT

➢ Your Answer should be clear, and neat


➢ The instructor is not responsible for any failure to respect the submission date
➢ Show all the necessary steps clearly
➢ Working together is encourage able but copying from each other is strictly forbidden.
➢ Submission date: During the date of final exam

1. Differentiate the following functions


a) ƒ(x) = 3x3 + 4x2 + 6x+2
b) f ( x) = 3( x 3 + 7 x 2 − 5 x)12
2. Solve the following integrals
e x + e−x 1
 x3ex dx c)
5
  e x + e − x dx d) 
2
a) (3 x 2 + 2 x + 2) dx b) dx
3
x ( x + 1)

3, Find the second partials (including the mixed partials)

a) f (x, y ) = 5x4 y3 + 2xy


b) f (x, y) = ex y 2
4, Suppose the cost of producing a certain commodity is given by TC (Q) = 3Q2+Q+48
a) Find the level of output at smallest value of Average variable cost
b) Find the level of output at smallest value of Average variable cost
c) Find the average minimum cost
5. Given the demand function for a good as Q= 56.6-0.25 P - 0.03Y+ 0.45Ps + 0.6n Where Q is
quantity demanded per week, P is price per unit, Y is average weekly income, Ps is Price of competing
good and n is population in million. Given values are P = 65, Y = 350 Ps = 60 and n = 24. Find the
price elasticity of demand.

By Ganamoo.F Page 1
Mathematical Economics Assignment for Third Year Economics 2014/2022

6, A firm selling in a perfectly competitive market where the ruling price is 40 birr can buy inputs K
and L at prices per unit of 20 birr and 6 Birr respectively and operates with production function
0.4
Q = 21 K L 0.2 , what is the maximum profit?
0.6 0.4
7, Suppose that the Q= 10L K Then, find the following

a) Marginal product of labour


b) Marginal product of capital
c) Degree of homogeneity of the function
8, What are the conditions for the optimization of a function Y = f (x, z)?
9. A firm produces two products which are sold in separate market with demand functions
P1 = 180 − 15Q1
and the cost function is TC = 150 + 120Q where Q = Q1 + Q2
P2 = 380 − 20Q2
How much should the firm charge in each market to maximize profit?
10, Suppose a firm faces the production function Q = 120 L + 200K - L2 - 2K 2 for positive values
of Q. If it can buy L at 5 birr per unit, K at 8 birr per unit and has a budget of 70 Birr, determine the
maximum output that it can produce using substitution method.
11. Suppose a consumer has a utility function of U = 40x0.5 y0.5 .If the price of x is 20 birr per unit,
price of y is 5 birr unit and the consumer has a budget of 600 birr . Determine the amount of x and y
which maximize utility using the Lagrange multiplier method

By Ganamoo.F Page 2

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