DSC1520/203/2/2018

Tutorial letter 203/2/2018

Quantitative Modelling 1
DSC1520

Semesters 2

Department of Decision Sciences

Solutions to Assignment 3

Bar code
Dear Student

Here are the solutions to the third compulsory assignment. Please contact me if you have any questions.

Kind regards

Dr Victoria Mabe-Madisa

E-mail: mabemgv@unisa.ac.za

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Question 1

d x − x2 3√
   1 1 3 1
d 1 3 1
√ = x 2 − x 2 = x− 2 − x 2 = √ − x.
dx x d 2 2 2 x 2
[Option 2]

Question 2

d 40(20 + 20 ln Q) 800
(20 + 20 ln Q)2 = = (1 + ln Q) .
dx Q Q
[Option 2]

Question 3

d 1
1
4x3 + 12 x− 2 4x3 + 2√1 x
√ =− √ 2 = − 4 √ 2.
dx x4 + x (x4 + x) (x + x)
[Option 5]

Question 4

d 3 2x 3 2x 3
ln x2 + 1 + e−2x = 2 + e−2x −2 × 3x2 = 2 − 6x2 e−2x .



dx (x + 1) x +1
[Option 1]

Question 5

2 (2x + 1)−3 1 1 1
Z Z Z
−4
= 2 (2x + 1) = 2 +c=− + c.
(2x + 1)4 −3 2 3(2x + 1)3
[Option 3]

Question 6
1 3
R t10 − t 2 t8 t− 2 t8 2
Z
7 − 52
dt = t −t dt = − 3 +c= + √ + c.
t3 8 −2 8 3 t3
[Option 3]

Question 7
     
R5 x4 (5)4 (1)4
2x + x3 dx = x2 + |51 == (5)5 + − (1)2 +


1 4 4 4 = 181,25 − 1,25 = 180.

[Option 3]

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Question 8
√
x+ 3x √
Z Z
2 1
dx = 1 + x− 3 dx = x + 3x 3 + c = x + 3 3 x + c.
x
[Option 1]

Question 9

y′ = 0
y ′ = −3 x2 − 6x + 8


y = −x3 + 9x2 − 24x + 26
= x2 − 6x + 8 = 0
y ′ = −3x2 + 18x − 24 = 0 OR
p (x − 2)(x − 4) = 0
−18 ± 182 − 4(−3)(−24)
x =
2(−3) x = 2 and x = 4
= x and 4
[Option 2]

Question 10

The marginal cost function is the differentiated total cost function. Thus by differentiating the total cost
function we can determine the marginal cost function. Now if the total cost function is
T C = Q4 − 30Q2 + 300Q + 500?
then the marginal cost function is
dT C
MC = = 4Q3 − 30 × 2Q + 300.
dQ
then the marginal cost function is
dT C
MC = = 4Q3 − 30 × 2Q + 300.
dQ
Now the marginal cost function’s value when Q is equal 10 is

MC = 4(10)3 − 60(10) + 300 = 4 000 − 600 + 300 = 3 700.

[Option 1]

Question 11

Profit function: π = T R − T C = 40Q − 8Q2 − (8 + 16Q − Q2 ) = −7Q2 + 24Q − 8.

dπ
dQ = −14Q + 24 = 0, that is Q − 1,714 = 0
Maximum where
Q = 1,714 = 1 714 units.

[Option 3]

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Question 12

The given demand function is

1
Qd = 100 − 2P 2 .
The price elasticity of demand is given by
dQ P
εd = ,
dP Q
with P and Q the price and quantity respectively.
The price of elasticity of demand if the price is P = 400 and Q assumed to be 68 and substituting results in
dQ 1
= −P − 2
dP
dQ P 1
P
εd = dP Q = −P − 2 Q
1
= − PQ2
1
= − (400)
2
68 = −0,29.

The price elasticity of demand is −0,29. Demand is inelastic since |εd | < 1, a 1%, price increase will result
in 0,29% less in units demanded.

[Option 1]

Question 13

M LC = 3 + 4L
R R7
TC = M LCdL 0 3 + 4LdL
7
= 3L + 2L2 0

= 3 × 7 + 2 × 72 − (0) = 119 = 119.

[Option 4]

Question 14
25
P = Q+2 at P = 5
25
5 = Q+2 ⇒Q=3
Area under the curve – area of the rectangle
R 3 25
= 0 Q+2 dQ − P0 Q0 or area of rect.
= 25 [ln 5 − ln 2] − 15 = 25 × 0,9163 − 15 = 7,9075.

[Option 3]

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Question 15

When Q = 6,P = 562. Consumer surplus is therefore

R6
CS = 0 (850 − 8Q2 )dQ − 6 × 562
 3

= 850Q − 8Q
3
 6 − 3 372
0

= 4 524 − 3 372 = 1 152.

Consumers are willing to pay R1 152 more for 6 bicycles than they actually pay.

[Option 4]