STUDENT NUMBER:

STUDENT’S FULL NAME:

SIGNATURE:

Programme / Program: BBA

Campus / Campus: Sophia Antipolis

Ex 1 /12
Année académique / Academic Year: 2019/2020 Ex 2 /18
Ex 3 /15
Semestre / Semester: Fall Ex 4 /10
Ex 5 /15
Nom du cours / Course title: Business and Economics Calculus Ex 6 /14
Ex 7 /21
Code cours / Course code: BAC.EAINA.OTMTH. 1702 Result /105

Type d’épreuve/ Type of exam: Final Exam

Nom du professeur / Professor:

Audrey Dalmasso, Alessio Lucio, Sabrina Mayerberger

Responsable cours / Course Manager: Audrey Dalmasso

Date / Date: 14/12/2019

INSTRUCTIONS / INSTRUCTIONS
YES NO

Sujets ramassés / Question papers to be returned with answer papers ☒ ☐

Calculatrice personnelle autorisée / Personal calculator allowed ☒ ☐
Open book exam
* Urkund address included on exam paper ☐ ☒
Other instructions: Students are not allowed to share a calculator. A correct answer with no explanation may not
get full credit but a wrong answer with correct intermediate steps (method or calculation) may get partial credit.
Please, write clearly.

Reminder:
Exams must be out of a total of 100 points (not including bonus points)
Include the number of points for each question

Validation du Responsable de cours

Course Manager Validation

FRANCE | AFRIQUE DU SUD | BRÉSIL | CHINE | ÉTATS-UNIS

SKEMA Business School - Campus de Sophia Antipolis

60, rue Dostoïevski – CS 30085 Tél. : +33 (0)1 93 95 44 44
06902 Sophia Antipolis cedex - France www.skema-bs.fr | www.skema.edu

Association loi 1901 – N° d’existence W 595008501

Exercise 1 – MCQ 12 points
Indicate your answers to questions 1 up to 6 in the table below:

Questions 1 2 3 4 5 6
Your
answer:

Question 1:
The graph represents the Cost and Revenue of toy X. Which of the following is NOT CORRECT?

A. The company marginal revenue is decreasing after 10 cars.

B. The break-even points are when R (x) = C (x).
C. After 20 cars the company is starting to make profit.
D. The company reached its maximum revenue at about 10 toys.
E. None of the above.

Question 2:

2 13 2 1 0
−3 1
A=[ 0 2] B=[ ] C = [0 3 2]
1 −3
−2 9 0 0 −2

Which statement is NOT CORRECT?

2 0 0
A. CT=[1 3 0 ]
0 2 −2

B. BT = B

C. The product AB exists.

D. The product BA exists.

2
Question 3:
7
A country has a distribution of income associated with the Lorenz curve: 𝑓(𝑥) = 𝑥 3 . Which of these sentences
1
best describes the situation? (Gini index = 2 ∫0 [𝑥 − 𝑓(𝑥)] 𝑑𝑥 )
A. People in the country share the income equally
B. One person owns the total income and the rest own none
C. The income is concentrated in a few hands and inequitable distributed
D. The income is equitably distributed
E. None of the answers above

Question 4:

The graph shows the Lorentz Curve for Croatia (a) and Brazil (b).

Which statement is CORRECT?

A. The income distribution in Brazil is more equally distributed than in Croatia.

B. In Brazil the income distribution is concentrated in a few hands.
C. The income distribution in Croatia is more equally distributed than in Brazil.
D. In Croatia all the people share equality in the income.
E. None of the above.

Question 5 : Which function can be a Cobb and Douglas function?

A. 𝑁(𝑥) = 𝑥 0.3
B. 𝑁(𝑥, 𝑦) = 5𝑥 0.025 𝑦 0.75
C. 𝑁(𝑥, 𝑦) = 2𝑥 + 3𝑦
D. 𝑁(𝑥, 𝑦) = 6𝑥 0.3 𝑦 0.7
E. None of the above.

3
Question 6 : A Cobb Douglas productivity function gives information on

A. The unit of energy and water

B. The income and the profit
C. The units of labor and the units of capital
D. The number of employees and the production
E. None of the above.

Exercise 2: Optimization with Lagrange multipliers - 18 points

A Company produces TVs at two different factories every week.
• x units in factory A
• y units in factory B

The weekly Cost function is given by 𝑪(𝒙, 𝒚) = 𝟔𝒙𝟐 + 𝟏𝟐𝒚𝟐

The company has a constraint function given by 𝒙 + 𝒚 = 𝟗𝟎

The purpose of this exercise is to find the number of units to produce in each factory: (x*,y*) that minimizes the
company’s weekly cost using Lagrange multiplier’s Method.

1. Express the problem in the form 𝐹(𝑥, 𝑦, 𝜆) = 𝐶(𝑥, 𝑦) + 𝜆𝑔(𝑥,y).

𝜕𝐹(𝑥,𝑦,𝜆) 𝜕𝐹(𝑥,𝑦,𝜆) 𝜕𝐹(𝑥,𝑦,𝜆)

2. Express 𝐹(𝑥, 𝑦, 𝜆) = 𝐶(𝑥, 𝑦) + 𝜆𝑔(𝑥, 𝑦) and find 𝜕𝑥
, 𝜕𝑦 and 𝜕𝜆
.

4
 3. Solve the system to find (x*,y*,𝜆 ∗) using augmented matrices.
Name your columns.

Matrix Operations performed

4. Interpret your results.

To minimize the company’s weekly cost, …

5
Exercise 3: Differentiation and Antiderivative - 15 points
𝑑𝑦
1. Find 𝑑𝑥 , do not over-simplify.
5 3
a) 𝑦 = ln(𝑥) + 2𝑒 𝑥 − √𝑥 + 𝑥 4
Rewrite:

𝑑𝑦
=
𝑑𝑥

ln (3𝑥 2 +4)
b) 𝑦 =
2𝑥+1
Rewrite:
Identify:

c) 𝑁(𝑥, 𝑦) = 6 𝑥 0.25 𝑦 0.75 (Find the following partial derivatives.)

𝑑𝑁
=
𝑑𝑥

𝑑𝑁
=
𝑑𝑦

6
 2. Compute the following indefinite integrals:
2
a) ∫ (−2𝑥𝑒 −2𝑥 + 3)𝑑𝑥
Identify
Show all steps.

𝑒 3𝑥
b)∫ ( )𝑑𝑥
1+𝑒 3𝑥
Identify.
Show all steps.

7
 5
c) ∫ (𝑥 + 1) √3𝑥 2 + 6𝑥 𝑑𝑥
Rewrite
Identify
Show all steps.

Exercise 4: Integration - 10 points

1
The rate of change of the monthly sales of a newly released movie is given by 𝑆 ′ (𝑡) = 300 𝑡 5 and S (0) = 0, where
t is the number of months since the movie was released and S (t) is the number of movies sold each month.
6
1. Using integration prove that 𝑆(𝑡) = 250𝑡 5 . (Hint: find the constant. Justify.)

8
2. How long will it take until the total sales reach 100 000 movies? (Hint: find t.)

Exercise 5: Leontief - 15 points

An economy is based on three industries: Food, Clothes, and Shoes. Production of a dollar’s worth of Food
requires inputs of $0.20 from Food and $0.40 from Clothes. Production of a dollar’s worth of Clothes requires
inputs of $0.20 from Clothes and $0.40 from Shoes. Production of a dollar’s worth of Shoes requires inputs of
$0.10 from Food, $0.10 from Clothes, and $0.30 from Shoes.

The goal is to find find the output for each industry that is needed to satisfy a final demand of $20 billion for
Food, $10 billion for Clothes, and $30 billion for Shoes.

The Leontief model is given by X = MX + D with: X the output matrix, M the technology matrix and D the final
demand matrix. Our goal is therefore to determine X.

1. Show that the solution to X = MX + D is 𝑋 = (𝐼3 − 𝑀)−1 𝐷 .

2.Find the technology matrix M and the final demand D.

3. Compute 𝐼3 − 𝑀 and show the computation for one element.

9
4. Find 𝑋 = (𝐼3 − 𝑀)−1 𝐷 using augmented matrices. Indicate the operations with rows and columns to get full
marks.

Matrix Operations performed

5. Interpret your findings.

10
Exercise 6: Markov Chains - 14 points
A Fast-food company classifies its customers as premium (P), standard (S), or trash (T), depending on the number
of orders placed in a year. Past records indicate that each year, 5% of premium customers are reclassified as
standard and 12% as trash; 5% of standard customers are reclassified as premium and 5% as trash; and 9% of
trash customers are reclassified as premium and 10% as standard.

1. Draw a transition diagram to illustrate the Markov chain.

P T

2. Find the transition matrix associated with the Markov chain.

3. We assume that this year 20% customers are premium and 70% are standard ones. Find the distribution of
clients in a year. Show the computation for one element.

11
Exercise 7: Price demand, marginals and price elasticity – 21 points
The price p (in dollars) and the demand x for a brand digital watches are related by the equation x = 4,000 - 40p.

1. Express the price p in terms of the demand x, and find the domain of this function.

2. Find the revenue R(x) from the sale of x pairs of digital watches.

3. Find the marginal revenue when producing 1,500 and 2,500 digital watches. Interpret your results.

4. Find the price elasticity of demand when producing 1,500 and 2,500 digital watches. Interpret your results.

12
5. What number of digital watches does the company have to produce and at what price would they have to sell
those to have a unit elastic demand?

6. We assume that the cost of producing x digital watches is given by C(x)=-0.005x² + 42.5x +22,500.
Find the break - even points. Interpret your results.

7. Find the marginal profit when producing 2,000 digital watches and interpret your results.

13