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Assignment 2 BUS135

The document outlines an assignment with various mathematical problems involving partial derivatives, elasticity of demand, critical values, monopolist pricing, cost functions, profit optimization, integration, and surplus calculations. Each problem requires the application of calculus and economic principles to find solutions related to functions of multiple variables. The assignment covers theoretical concepts as well as practical applications in economics.

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arupbanerjee000
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12 views2 pages

Assignment 2 BUS135

The document outlines an assignment with various mathematical problems involving partial derivatives, elasticity of demand, critical values, monopolist pricing, cost functions, profit optimization, integration, and surplus calculations. Each problem requires the application of calculus and economic principles to find solutions related to functions of multiple variables. The assignment covers theoretical concepts as well as practical applications in economics.

Uploaded by

arupbanerjee000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Assignment_2

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1. Find all types of partial derivatives of the following function:


𝒁 = 𝒇(𝒙, 𝒚) = 𝟔𝒙𝟑 − 𝟏𝟎𝒙𝟐 𝒚 + 𝟖𝒙𝒚𝟐 − 𝟏𝟐𝒚𝟑
𝒁 = 𝒇(𝒙, 𝒚) = 𝟐𝟎𝟎𝒙 − 𝟏𝟎𝒙𝟑 − 𝒙𝒚 − 𝟐𝒚𝟑

2. Given 𝑸𝟏 = 𝒇(𝑷𝟏 , 𝑷𝟐 , 𝑰) = 𝟏𝟎𝟎 − 𝑷𝟏 + 𝟎. 𝟕𝟓𝑷𝟐 + 𝟎. 𝟎𝟎𝟕𝟓𝑰. Find the price,


income and cross price elasticity of demand when 𝑃1 = 10, 𝑃2 = 20 𝑎𝑛𝑑 𝐼 =
10,000. Interpret your result.

3. Consider the following function:


𝒁 = 𝟏𝟔𝟎𝒙 − 𝟑𝒙𝟐 − 𝟐𝒙𝒚 − 𝟐𝒚𝟐 + 𝟏𝟐𝟎𝒚 − 𝟏𝟖
(i) Find the critical values.
(ii) Check whether the function is relative maximum/minimum/inflection
point/saddle point at these critical values.

4. A monopolist sells two products 𝑥 and 𝑦 for which the demand functions are:
𝒙 = 𝟕𝟐 − 𝟎. 𝟓𝑷𝒙

𝒚 = 𝟏𝟐𝟎 − 𝑷𝒚
And the joint cost function is 𝑪 = 𝒙𝟐 + 𝒙𝒚 + 𝒚𝟐 + 𝟑𝟓
Find the profit maximizing level of (i) output, (ii) price, and (iii) profit for a monopolist
with the above demand functions.

5. (a) What output mix (x and y) should a firm produce when its joint cost function is
𝑪 = 𝟔𝟎𝒙 − 𝟐𝒙𝟐 − 𝒙𝒚 − 𝟑𝒚𝟐 + 𝟏𝟎𝟎𝒚 and its production quota is 𝒙 + 𝒚 = 𝟏𝟐? (b)
Estimate the effect on cost if production capacity is expanded by 1 unit.

6. Optimize the following profit function subject to the given constraint: 𝝅 = 𝟖𝒙𝟐 −
𝒙𝒚 + 𝟏𝟐𝒚𝟐 and output capacity 𝒙 + 𝒚 = 𝟒𝟐. Estimate the effect on the value of
the profit function from a 1-unit change in output capacity.
7. (a) Determine the following integrals:
𝟏𝟎
(i) ∫(𝟏𝟔𝒙𝟑 + 𝟔𝒙𝟐 − 𝒙
+ 𝟓𝟎𝒆𝒙 + 𝟏𝟎𝟎)𝒅𝒙
𝟑
(ii) ∫𝟐 𝟒𝟎𝒙(𝟏𝟎𝒙𝟐 − 𝟓) 𝒅𝒙 𝟐

(b) Draw the curve of the following function and evaluate the area between the curves
over the stated interval.
𝒚𝟏 = 𝒙𝟐 − 𝟒𝒙 + 𝟏𝟐
𝒚𝟐 = 𝟑𝒙𝟐
from 𝒙 = 𝟏 𝒕𝒐 𝒙 = 𝟒

8. From each of the following marginal cost functions, find the total cost function:
𝒅𝑻𝑪
(i) 𝐌𝐂 = = 𝟔𝐐𝟑 + 𝟒𝑸𝟐 − 𝟏𝟎𝑸 + 𝟐𝟎𝟎, FC=200
𝒅𝑸
𝒅𝑻𝑪
(ii) 𝐌𝐂 = = 𝟖𝟓𝑸𝟐 − 𝟓𝟎𝑸 + 𝟓𝟎𝟎, FC=500
𝒅𝑸
𝒅𝑻𝑪
(iii) 𝐌𝐂 = = 𝟏𝟓𝑸 + 𝟑𝟎𝟎, FC=80
𝒅𝑸

9. From each of the following marginal revenue functions, find the total revenue
function:
𝒅𝑻𝑹
(i) 𝑴𝑹 = = 𝟖𝟎 − 𝟐𝟓𝑸𝟐
𝒅𝑸
𝒅𝑻𝑹
(ii) 𝑴𝑹 = = 𝟏𝟓𝟎 − 𝟑𝟔𝑸𝟑
𝒅𝑸

10. Consider the following demand and supply function as follows:


𝑷𝒅 = 𝟔𝟎 − 𝟏𝟎𝑸
𝑷𝒔 = −𝟒𝟎 + 𝟏𝟓𝑸

Find the consumer and producer surplus.

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