Q1.

Total revenue is:

TR = ∫ MR . dQ
= ∫ (240 −o , 6 Q 2 ). dQ
= 240Q − 0.2Q3 + C
Since when Q = 0, we have TR = 0 => C = 0
Hence, Total Revenue function is:
TR = 240Q - 0.2Q3
Total cost function is:
TC = 50 + ∫ MC . dQ
= 50 + ∫ (150+o , 3 Q 2)
= 150Q + 0.1Q3 + 50
So, total profit = TR - TC
π = 240Q - 0.2Q3 – (150Q + 0.1Q3 + 50)
= -0.3Q3 + 90Q – 50
Maximum profit occurs at point where MR = MC
240 −o ,6 Q 2 =150+o , 3 Q 2
 Q = 10 or Q = -10
Since Q can’t be negative, the profit will be maximized at Q = 10
At Q = 10, the profit is: -0.3Q3 + 90Q – 50 = -0.3*103 + 90*10 – 50 = 550
Therefore, maximum profit = $550 which occurs for Q = 10

Q2.
I(t) = 100e^0,1t
5
a) ∫ 100 e 0,1 t dt
3

100 0,1.5 0,1.3

= [ e −e ]
0,1
= 2988,62
t
0,1 t
b) 100,000 = ∫ 100 e dt
0

100 0,1 t
100,000= [ e −1 ]
0,1
 e 0,1 t =101
1
 t= log ( 101 )=46.1
0,1
Hence, it requires more than 46 years that capital stock exceeds 100,000