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Assignment 1 Differentiation

This document contains 10 problems related to economics and calculus concepts. The problems cover topics such as profit maximization for firms under different cost and demand functions, using Lagrangian multipliers to minimize costs or maximize profits subject to constraints, finding maximum and minimum values of functions, calculating elasticity of demand from given demand functions, and taking partial derivatives of multivariate functions.

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Siya Sunil
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Download as DOCX, PDF, TXT or read online on Scribd
83 views

Assignment 1 Differentiation

This document contains 10 problems related to economics and calculus concepts. The problems cover topics such as profit maximization for firms under different cost and demand functions, using Lagrangian multipliers to minimize costs or maximize profits subject to constraints, finding maximum and minimum values of functions, calculating elasticity of demand from given demand functions, and taking partial derivatives of multivariate functions.

Uploaded by

Siya Sunil
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Solve The following problems in your Work Book

1. A firm faces a demand law q = 50-4p where q and p are the quantity and prices of the
good respectively. Find out the price at which total revenue is maximized.
2. A manufacturer in a monopolistically competitive industry produces two different brands of a
product for which the demand functions are P1=56-4Q1 and P2=48-2Q2. and the joint cost
function is

TC=Q12+5Q1Q2+Q22. Find the profit maximizing level of output and the price that should be
charged for each brand.
3. A transport company plans to ferry tourists between Delhi and Simla. It has its cost
function estimated as given below:
TC = 100 + 50N + 4N2
where N denotes number of passengers per day.
Find (a) the average function; (b) number of passengers per day that minimizes the average
cost.
3. Suppose a firm has its TR and TC functions estimated as follows:
TR = 300Q-3Q2
TC = 500 + 50Q + 2Q2
Find (a) profit function of the firm, (b) the quantity of output (Q) that maximizes the
firm's profit.

4. A company produces two goods X and Y. The profit function of the company is given as
follows:
P = I00X- 2X2 - XY + 180Y – 4Y2
The company is under obligation to produce a minimum combined output of 30 units. Find the
output of X and Y subject to a total of 30 units that maximize total profit by using Lagrangian
multiplier methods.
5. Suppose that the manager of a firm is planning to meet an order of 1000 units of two products
X and Y. The manager's problem is to find the combination of two goods that minimize its cost.
He has the firm's cost function of two goods estimated as
C = 5X2 + 20 Y2
By using the Lagrangian multiplier method, find the quantity of X and quantity of Y, subject to X
+ Y = 1000, that minimize the cost of meeting the order.

6. Find the maximum and minimum values of the following functions


a) 3X4 -X3 +2
b) x4 – 14x2 +24x +9

Q
7. Find the profit maximizing output given Q = 200 – 10p and AC = 10 + where Q is
25
quantity, p is price and AC is average cost.

8. Find the first order and second order partial derivatives of the following function
a) Z = 2x3 +5 x2y +xy2 +y3
b) Z = log (x2 + y2)

9. Find elasticity of demand if demand function is x = 250 – 5p +p2. Also find elasticity of
demand at p = 8
10. Find elasticity of demand if demand function is p = 50 – 3q. Also find elasticity of demand
at p = 5

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