2020 Paper

Queshion Ol
000 uníts s Ps. 60000
1S00 untts Rs 85o00o

Demand FunctionD
P 35o-24

yTotal cost function - Ccq

Ccq) mqte
85000 60000
M -

25000
1500 1000 500

Cca) 50q t e

60000 50 xi000 t C
C 60000-50000 10000b/

CO) 50 g + 10060

Total eevenue anction

Rca)PxG 350-2q) 350q 2g

At breakeven poit
P cq) C a
tl0000
350 2 5oq
O29 -3 50q +5oq t l000o

29-300q +1O000 =
O
 a 2 b 300 e 10000

2 -b tJb-hac
2a

=C30o) t E300)-4 XRX IO00Do

2 x2

300 t 800o2- 8oo00

S00 t oo
4
2 50
2 1oo Or

Break eren guantites 50 1OO

by Sepply f P 40 t q
b/
Oemandf P 250-2q-92

At market eqaihbrium Sca) D

cq
70+q 25029-92
2+39-l8o=O
a b 3 -18o
 - b tb-4 aC
2 a

-3 e2 - 4xIxe160)
2x|

2 3 9 + 720
2

-3t 2
2

15
12 or
2
quantity cannot be negative
2 12
/
P 70 t12 821

11 tax =Rs 550 per unit

New supply equation 5,cq) 70 t qt50

SCa) 120 tq
At equilibrium,
Sucg)4 = Deq)

120+9 250- 2q-q

2+39-130 O

a b 3 ea-130

1 - b tb°-4ac - 3 t32-4x1 x-130)

20 2xI

-3 t9+ 520
2
or 2-3
 quantity caond be negatire

10
13ol2
P 120 tlo

Tqx revenue 50 X 1O

R s 5 0O

Questio 02
iy tcz) = 2 V62 +1
2(62+*
Let
hca) = 9Ca)62zt1)
h'()I gca G24)x 6
3zt

f'ca) h ) g'ca) x t gcwx h'ex)

362 +1) 3+ G2+1) x1

3 +62t
62+1

fcay tz
2-3
gca) 2-23
let hca) It2
g Cx) -322
h'C) 2

f'ca) 2 gCa) x h'C ha) xgea)

[gcxj
t)x -322
- 2-3)x22 -

(2-23)
 f'(a) 2a
C2-a) + 322 Ci+) (5)
-3)2

i fca) - An 22 Ln (22) -

Ln(5zt4)
52th
f'ca) Lx2 x5
2
(52t4)
2
S
5atH

5xt-52
z(52+4)

z (5xt4

OR
d meth ocd
( 5 x t4) X2 - 22 X 5
fa) (S2 t4) 2

52 t4 X 102 t8 -102
2 (5t 4)2

2 (5xt4)

52t 4)
 Ccz) 2a-qz + 12
-

Cost f2
Marginal cost fA
c'C2) 6 -18z ti2
MC (20) 6x 203-18x20 + 12.

= 2052l

hOhen producBion increased by one unit tofal cost

in creases by Rs. 2052 00 qpproximately

/ Total cost miotimf2ed MC(a) =o

62-182 t 12 =O
a6 b 18 12

- bt{b°- 4aC
2a

--18) tJE18)3- 4*6x 12

2 x6

2 or

MC"() 122 -18

MC(x-2) 12x2 - 18 6O
minimum
MC"(x1) 12xI -18 -6 <0 maximum

At z z total cost 7s minim2ed.

C y 2-324 2
dy 2 -6
dz

d 4 -6 - 2
 tangent lne equati on

y 2z tc

W ben 1 l|

y 21- 32 +2.
y -3x +2
yO
At point (0) tanqent line eq
y 22t e y - 2 z t2

e 2

Question 03
fa4) 22°y1+ 22 -3y+42y -600
a/
Aaay fx = 2y' x 322 +2x22 tHyxi

6ry+ 42t49
ty 2 x x 4y3- 3x2y +AY 4 ax|
8xy3 - 6 y t H2

tx= 6yt x12 + 4 XI 122y"+ 4/

yy & 8x3y - 6xI 24 y - 6
fxy 6 x4y3 + 4XI 242ys +4
 2, 2o0 -3pi-P2 Demand F of product 1

L2150
-Pi - 2p2 Demand of produet 2

R
Joint Revenue FA - PCP1P

PCpPa) RCe
Pa
200-3pi -Pa)P + (iso -
Pi -2Pa)
= 200p-3Pi- P P2 + 150
P2
-

P P2 -2Pa

= 200P-3 P
-
2 P Pa-2 P+ 150 P2.

2x30 + ISO x 30
2x20x30

tPCP»Pa) =200 x2o) -3 x20-

Rg H300 OO

200 -6P -2P

fR
Pp 2Pi -4 Pa t150

PIP -6 Ppota 4 PPIP2 -2

RCP1Pa) maximizc at RPPPaO

200 6PI -2P2 O -2 P - 4P2 t150 #Ob

6PI 200 -2P2 2P 150-+P2
Pi F5-2P
6 (75-2Pa) 200 - 2P
P 2 75 -2X25
450- 12P2 2200 -2P2
450-00
2
2 P2 -2P2 Pi 2 5 l ,
250 OP

P2 25 l2
DP1Pa) Re, CP P) PeP,CPi»P.) Pe, PP)-
2

-6X -4 -C-2)
244
2 20

PP CP Pa)=-6 4O relative maximum

at CPI Pa)

P Pa 25 that oill maximíze the

When
When
total reve nue

Question 4
a fz- slT+ d
-
+S dx-afas dz t2J %dz
+2 Ln) + C

= - 3 2 t2n(x) +C

+C
1 -

22% t2 n
Cis an arbitrary con stant.
 2 (x +1) da
3 2t62

2 t2 dz
J3246
3 22t dz
3 32346
3 Ca2t2) dz
3 22 4 6 da

6 2t 6 dz
3 22t6

L In @n462) +C

Cis an arbifrary constant.

3x 47 dr

-
8a4) dr

aex+ 1)* da
3

7)

9243) tC
3
3/
2 (3at7) +C
Cis an arbftrary coo Stant
J e - ) : dz - o

- )dz
d z -z'dz %0

-
( -C)%
20

4t
20

5X3
20
k

Question o5

a MC Cz) 8 - 4 t 1o
fixed cost 20
Let Total cost Cca)

Ccx) MC () dz =
az42 tio) d

+I02 +
-4 2
 Ca z -2+10z t20

CCz=10) 103 -2xi03 +10X 10 +20

tO00 -200 t00 t20

920l

b Scq) qt59 +2
Dca)- ta5
At equflt brium,
Scq) Dcq)
5 2 +2 - 4 +35
249+5q +2 -35 0

2 t59-33 0

a2 b 5 C 33

- b-b tb2 -Hac

2a

-5 t 52- Hx2 x 633)

2X2

23 6r

quanti ty canoot be negative

P--2435 -3 +85 26/

 B
Producers Surpluse PA Scq) dq

20x2)-JG15q 12) da
- 48

-(+5 2*3)
78 34 5
40 5

Coosumers Surpluse = Dca) d - Po10

- J Eg'+35) d - 6e *3)

t35 48

-3+3sx3 78

96 t8
18
 Question 06|

Y80000l loan 2 0:15 Compouoded

quarterly
80000l2

3
2
20000
20000 20000
year
2years
3 qears.
4 years

end of the th
4qeors
Let, 2 -

payment made at the

t 20000 +20000
80000 20000 t
Ix 4 (1 to1s|3x
1 t0:15 (1tos
1+0:15

80000 450 1t 345 +_

(1t 0:15 l6

34982655
6
I+0 15\"
H

63046 * |

Payment made at the end of the 4tyear 63o46.41|

Dy Housing Loan P s 4000 000 O0

Amortr2e d For 2 years 2 O o9

Compounded

monthly
Let R monthly payment

- Ci+8

-12X12.
4000 O00 R
( 0 9

30 000 P (O-65903)
R 30000

O65903
4552I 45

i1 Loan balance at the begínning of the a5t

month
-nte-|
A -Cin4)

Aas 5521 45 -144 t45-17

O.09
2
- (1+009
I2

24 72 025 14 2