Q1. A firm produces two goods x and y which have the prices of Px and Py.

The following firm has these

two functions.

−P X + PY +13−3 x=0

P X −4 PY +26−3 y=0

a) Find Price of x in terms of x and y.

Find Price of y in terms of x and y.(4)
b) Find the Total Revenue function(Hint: TR= total revenue of x +total revenue of y)(2)
c) Find marginal revenue of x and marginal revenue of y(4)
d) Graph both marginal revenue functions and show the point of intersection(5)

Q2. Like question 1 a firm produces two goods x and y. The firm has the following price functions and
total cost function.

P X =76−x

P y =2(50− y )

TC=2 x 2 +2 xy +3 y 2 +10
a) Find the Total Revenue function(Hint: TR= total revenue of x +total revenue of y)(4)
b) Find the total profits function π (4)
∂π ∂π
c) Find and (4)
∂x ∂y
∂π ∂π
d) Find y+ x and simplify your result (3)
∂x ∂y
Q3 Assume a Production Function F(K,L,t) Where L=L(t) but k is not a function of time.

a) Write the total differential of the production function, and explain each term.(5)
b) Write the total derivative with respect to K and explain each term.(5)
c) Write the total derivative with respect to t and explain each term.(5)

Q4 The utility function of an individual is given below.

3
y +¿
¿
U=U ( x , y )=( x+ 2 )2 ¿
a) Find the Marginal Utility of x and y.(10)
b) Find the value of each Marginal Utility of the commodity when 3 units of x and y is consumed.(5)

Q5 Find F x ∧F y
2 3
a) f ( x , y ) =x +5 xy− y (5)
b) f ( x , y ) =(2 x−3 y )/( x + y) (5)
Q6 f ( x , y ) =3 xy 2+2 x where x(t)= 3 t 2 and y(t)= 4 t 3 +t

a) Find the derivative of f(x,y) with respect to t using chain rule.(10)

b) Find the derivative of f(x,y) with respect to t by substituting functions of x and y. Compare your
result.(10)

Q7 Find dz/dt at t=0.(10)

2
(5 t +3 xy )
Given z= z=t 2+1, y= √ t 2 +1∧w=e t +1
2 w2 y