College Mathematics Assignment 1

Exersice 1.6 Questions 3,5,9,17,19,25,45,49

NAME ABDULBASIT

SECTION C

ROLL NUMBER L1F19BBAM0776

SUBMITTED TO MAM.SAMRA ABAAS

Question 3
Suppose a Radio Manufacturer has the Total cost function C(x) = 43x +1850 and the total
Revenue function R(x) = 80x

(a) What is the equation of the profit Functions for this commodity?

(b) What is the profit on 30 units? Interpret your result.

(c) How many Radios must be sold to avoid losing Money?

Solution:-
(a) P(x) = R(x) – C(x)

P(x) = 80x – (43x +1850)

P(x) = 80x -43x-1850

P(x) = 37x-1850

(b) P(x) = 37x-1850

P(x) = 37(30)-1850

P(x) = 1110-1850

P(x) = -740$ (Loss of $740)

(c) P(x) = 37x – 1850

P(x) = 37(50) – 1850

P(x) = 1850 – 1850

P(x) = 0

Hence if we Sold 50 radios we can avoid losing Money

Question 5
A Linear Cost Function is C(x) = 5x+250

(a) What are the slope and the C-intercept?

(b) What is the marginal cost, and what does it mean?

(c) How are your Answers to (a) and to (b) related?

(d) What is the cost of producing one more item if 50 are currently being produced? What is it if
. 100 are currently being produced?

Solution:-
C(x) = 5x +250
m = 5x
(a) C-intercept = 250
(b) Managerial cost called slop = 5
Rate of Change of Cost per Unit.
(c) Slope and cost per unit is the same
(d) 50th to 51th and 100th to 101th
Cost of Production one more item is not effected the currently Situation.
Question 9
Let C(x) = 5x+250 and R(x) = 27x

(a) Write the profit Function?

(b) What is the Slope of the Profit function?

(c) What is the Marginal Profit?

(d) Interpret the marginal profit?

Solution:-
(a) P(x) = R(x) – C(x)

P(x) = 27x – 5x-250

P(x) = 22x – 250

(b) Slope = m = 22

(c) Marginal price = 22

(d) Each units sold add $22 to profit at level of productions. So produce and sell as much as
possible.

Question 17
A jewelry makers incurs costs for a necklace according to C(x) = 35x + 1650 if the revenue
Functions for the necklaces is R(x) = 85x. How many necklaces must be sold to break even ?

Solution:-
P(x) = R(x) – C(x)

P(x) = 85x – 35x -1650

P(x) = 50x -1650

P(x) = 50(33)-1650

P(x) = 1650 – 1650

P(x) = 0

A jeweler must be sold 33 necklaces to break even.

Question 19
A manufacturer sells belts $12 per unit. The fixed Costs related to this product are $1600 per
month, and the variable costs are $8 per unit.

(a) Write the equations of the revenue and costs functions

(b) Find the break even point?

 Solution:-
(a)

Equation of Revenue = (Price per unit) (no. of units)

= (12) (x)

Equation of Revenue = 12x

Equation of Costs = variable costs + Fixed Costs

= 8x + 1600

(b) P(x) = R(x) – C(x)

P(x) = 12x – 8x – 1600

P(x) = 4x – 1600

P(x) = 4(400) – 1600

P(x) = 1600 – 1600

P(x) = 0

A manufacturer sold 400 pieces to reach the break-even point.

Question 25
A company manufactures and sells book cases. The selling price is $54.90 per bookcase. The
total cost function is linear, and costs amount to $50,000 for 2000 bookcases and $32,120 for
800 book cases.

(a) Write the equation for revenue?

(b) Write the equation for total cost?

(c) Find the break-even point?

Solution:-
(a)

Revenue = (Price per unit) (No of units)

= (54.90) (x)

Revenue = 54.90x

(b)

Total Costs = Fixed price + variable costs

=14.90(x) + 20200

= 14.90x + 20200

(c)

P(x) = R(x) – C(x)

P(x) = 54.90x – 14.90x – 20200

P(x) = 40x – 20200

P(x) = 40(505) – 20200

P(x) = 20200 – 20200

P(x) = 0

A manufacture sells 505 units to reach the break even points.

Question 45
Find the market equilibrium point for the following demand and supply functions.

Demand: 2p = -q + 56

Supply: 3p – q = 34

Solution:-
2 P=−q +56

−q +56
P=
2

3 P=34 +q
 34+ q
P=
3

−q+56 34+q
=
2 3

By cross multiplication we get

3(-q + 56 ) = 2(34 + q)

-3q +168 = 68 + 2q

-3q-2q = 68 – 168

-5q = -100

−100
q=
−5

q = 20

Put the value of q in equation (1)

3P = 34 + q

3P = 34 + 20

34+20
P=
3

P = 18

Question 49
A group of retailers will buy 80 televisions from a wholesaler if the price is $350 and 120 if the
price is $300. The wholesaler is willing to to supply 60 if the price is $280 and 140 if the price is
$370. Assuming the resulting supply and demand functions are linear, find the equilibrium point
for the market.

Solution:-
Demand

P1 (80 , 350)

P2 (120 , 300)
 300−350
m=
120−80

−50
m =
40

−5
m=
4

−5
P – 350 = (q – 80 )
4

4(p – 350 ) = (-5q + 400 )

4p = -5q + 400 + 1400

4p – 5q = 1800 …………………………………….(1)

Supply

P1 (60 , 280 )

P2 (140 , 370)

370−280
m=
140−60

90
m=
80

9
m=
8

9
P – 280 = (q – 60 )
8

8(P – 280 ) = 9q -540

8P – 2240 = 9q – 540

8P – 9q = 1700 ………………………………………(2)

To solve equation 1 and 2 we get

Multiply eq 2 by (2)
8p – 9q = 1700

-8P - 10q = - 3600

19q = 1900

1900
q=
19

q = 100

Put value of q in equation 2

4P + 5(100) = 1800

4P + 500 = 1800

4P = 1800 – 500

4P = 1300

1300
P=
4

P = 350

HENCE THE EQULIBRIUM POINTS ARE (100 , 350 )

COMPLETED ALHAMDULLIAH