Assignment ECO556

Assignment #1 : ECO556

 

 

Due Date: 15^th April 2012 (Hand in Hard Copy During Seminar)

Answer ALL Questions:

Total Marks = 15

 

 

1.    Show the calculation for  1^st and 2^nd order derivatives the following functions:

 

a)   Y = 100 + 5X ³ – 4X ² – 2X ¹

(2 marks)

 

b)  TR = 2Q ² – 1/3Q ³

                                                                                                                  (2 marks)

 

 

2.  The demand curve function of a good is given by

 

            Q = 10 – 0.5P 

 

            where

 

            Q denotes units of output

            P denotes price

 

            and the total cost function is

 

            TC = Q ³ – 5Q ² + 16.25Q + 25

 

 

a)  Find the level of output which total revenue (TR) will be maximized.

                                                                                                                        (5 marks)

 

b)  Derive total profit (π) function and then find the level of output which total profit (π).

                                                                                                                       (6 marks)

 

 

 

 

 

 

 

 

 

 

 

 

 

Assignment1 Eco556 epjj Mac 2012