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BBE/B.COM Maths
BBE/B.COM Maths
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revenue decreases , continuously , a s output increases .Show that the marginal revenue is always positive and thus, the demand curve is elastic at every point .Verify this result by finding the elasticity of demand of the given demand function. 2. A firm faces a demand schedule p=1200-9x and its production function is x=L1/3 ,where L is labour . Find the marginal revenue product of labour when firm employs 64 workers. 3. The short-run total cost function of a firm is estimated to be C = 100+1.5x-.001x2. Assuming that the variable factor is purchased from a perfectly competitive market, show that this cost function is not consistent with the law of diminishing returns 4. Given a firms production function x=50+30L-L2 and its average revenue function AR=1200-3x. a) Find MPL and the value of L at which MPL =0. b) Does the production function show Diminishing marginal productivity of labour c) Write down an expression of MRPL as a function of L and find its value when L =10. 5. Total cost of a manufacturer is C= 5000+1000q-500q2+ a) Find the MC function b) Find the expression for the slope of the MC curve c) Find the Average total cost function d) At what value of q does MC = AVC ? 6. The total cost of producing x units of a commodity is given by C= 500x2+2500x+5000, find a) MC when x units are produced b) MC when x =100,150 c) Average cost when x units are produced d) Average cost when x=100,150
2 3 q . 3
7. The total cost C(x) of a firm is C(x)=.005x3-.02x2-30x+5000 where x is output .Determine: a) The average cost b) The marginal average cost c) The marginal cost d) The rate of marginal average cost e) The value of x for which MVC=AVC 8. If the total cost function is given by C =a+bx+cx2, where x is the quantity of output ,show that
d 1 ( AC ) MC AC dx x 36 where x is the x
output . find the output for which AC is increasing and the output for which AC is decreasing , with increasing output . Also find TC AND MC. 10. Find the marginal revenue product for a monopolist confronted with demand x=10-2p 11. A firm knows that the demand function for one of its products is linear .It also knows that it can sell 1000 units when the price is Rs.4 per unit , and it can sell 1500 units when the price is Rs.2 a unit .Determine Demand function,TR,AR,MR 12. If the consumption function is given by C 6
13. If x = 25-3p-p2 be a demand function , find the point elasticity of demand at p=3 14. If the demand function for a product is given by p=4-5x2 , for what value of x does the demand have unit elasticity? 15. The demand x ,as afunction if income I is given by x 75 elasticity of demand at I =200
average cost as minimum. 18. A company produces x units of output at a total cost of a) The output at which marginal cost is minimum b) The output at which average cost is minimum c) The output at which average cost in equal to marginal cost.
1 3 x 18 x 2 160 x .Find 3