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  • 3 Equations, 3 Unknowns

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    The document provides two economic models: a three-variable model for determining Y and C using Crammer's rule, matrix inversion, and repeated substitution; and a total revenue and total cost model for a firm to find the profit-maximizing output level and profit amount. The profit-maximizing output level and profit are to be determined using the total revenue and total cost functions provided: R(Q) = 1200Q - 2Q^2 and C(Q) = Q^3 - 61.25Q^2 + 1528.5Q + 2000.

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    The document provides two economic models: a three-variable model for determining Y and C using Crammer's rule, matrix inversion, and repeated substitution; and a total revenue and total cost model for a firm to find the profit-maximizing output level and profit amount. The profit-maximizing output level and profit are to be determined using the total revenue and total cost functions provided: R(Q) = 1200Q - 2Q^2 and C(Q) = Q^3 - 61.25Q^2 + 1528.5Q + 2000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    3 Equations, 3 Unknowns

    Uploaded by

    mallamsambo
    The document provides two economic models: a three-variable model for determining Y and C using Crammer's rule, matrix inversion, and repeated substitution; and a total revenue and total cost model for a firm to find the profit-maximizing output level and profit amount. The profit-maximizing output level and profit are to be determined using the total revenue and total cost functions provided: R(Q) = 1200Q - 2Q^2 and C(Q) = Q^3 - 61.25Q^2 + 1528.5Q + 2000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Given the following model

    Y = C + I 0 + G0

    C = a + b(Y – T)

    T = d + tY

    Where T = Taxes

    (a) Find Y and C from the above model by


    (i) Crammer’s rule
    (ii) Matrix Inversion
    (iii) Repeated substitution

    Given the Total Revenue and Total Cost Functions as follows:

    R(Q) = 1200Q – 2Q2

    C(Q) = Q3 – 61.25Q2 + 1528.5Q + 2000

    Find

    (a) The profit maximization output


    (b) The Firm’s profit

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