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EC105A Assignment 2

# EC105A Assignment 2

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Working out questions given by lecturer.
Working out questions given by lecturer.

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02/21/2014

Department of Economics
Student Name: Student Number:
Xin Xu 68124325__________________ _____________________
First ArtsFirst FinanceTutorial Day & Time:Assignment Deadline:Course and Assignment Title
EC 105A Assignment 2
Office Use: (Mark)
This cover sheet for assignments must be copied, filled in correctly and included as first page to ALLassignments submitted electronically on Moodle.
Wed. 5pmApr.22
n
2.45pm
Cover Sheet for Assignment

-150-100-500501001502002503003504004500 5 10 15 20 25
ProfitOutput
1.

a)

The graph of profit function for values of output between 0 and 20 shows below,The profit function is valid. At first, the output is 0, the profit is -100. Then as theincrease of output, the profit goes up as well. The profit reaches the peak at 400when the output is 10. After that, profit begins to decrease while increasing output.The profit goes back to -100 when the output is 20.b)

P(Q) = -100 + 100Q - 5Q
2

P’ (Q) =
-10Q + 100Therefore,From the table above we can see the figures consistent with the graph in part a).c)

From the profit function P (Q) = -100 + 100Q - 5Q
2
, we can see that a = -5, b = 100.The value of output that maximise profit is equal to -


= 100/ (-2
(-5)) = 10, thenmaximum profit P is equal to 400. The calculation is consistent with the graph inpart a).Q P'(Q)
2 808 2014 -4018 -80

2.

a)

y = 4x
-3


= 4
(-3x)
-4
= -12x
-4
When x=1,

= -12b)

y = -5

= 0When x=1,

is still 0c)

y = -3x
4
(2x
2

–
5x)Set u = -3x
4
, v = 2x
2

–
5x, so

= -12x
3
,

= 4x
–
5By using the product rule,

= u (

) + v (

)= (-3x
4
) (4x
–
5) + (-12x
3
) (2x
2

–
5x)= -36x
5
+ 75x
4
When x=1,

= 75
–
36 = 39d)

y = 5x
3
/ (4x
–
3x
2
)Set u = 5x
3
, v = 4x
–
3x
2
, so

= 15x
2
,

= 4
–
6xBy using the quotient rule,

=

 


=

(
) 
()(
)

=

5
(


)
When x=1,

= 25