The American University in Cairo

Department of Economics Econ216

Assignment1

1. If h(x) = (3x + 2)2

Find: h(-2), h(0), h(1).

2. List the domain for:

a. 𝑔(𝑡) = √𝑡 2 − 9
𝑡−3
b. 𝑔(t) =√𝑡 2
−2𝑡−8
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c. 𝑔(t) =𝑡−5

𝑥
3. If 𝑓(𝑢) = 𝑢2, 𝑔(𝑥) =𝑥−3

Find f(g(x)) and g(f(x))

4. Find the equation of the line that passes through the points (2, – 4) and (5, 2).
a. Find the slope
b. Find the equation of the line

5. Suppose the production function for a certain company is given by the following
Cobb-Douglas function:
Q(K,L)= 1.025 k0.65 L0.35
where K is capital investment in L.E. millions and L is the size of labor force in
thousands of workers.
a. Determine its returns to scale.
b. Compute the output if K is L.E 120 millions, and L is 95 thousand workers
c. Compute the production output if both K and L are cut in half.

6. Sketch the following function:

𝑓(𝑥) = 3(𝑥 + 2)2 − 9

7. Write an equation for the line with the given properties:

a. Through (4, 1) with slope 2.
b. Through (1, 2) and parallel to x-axis.
c. Through (2, 3) and parallel to y-axis.
d. Through (1, 0) and perpendicular to the line 4x+2y=1.

8. A manufacturer estimates that it costs $15 to produce each unit of a particular

commoditythat sells for $25 per unit. There is also a fixed cost of $1,300.
a. Express the cost C(x) and revenue R(x) as functions of the number of units (x)
thatare produced and sold.
b. What is the cost of producing 100 units?
c. Find the cost of producing the 100th unit.

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 d. What is the profit function for this commodity?
e. What is the minimum number of units that must be sold to make a profit?

9. If the selling price per unit is $12, the variable cost is $8 and fixed cost if 7000
a. Find the TC function.
b. Find the TR function.
c. Find the TR of selling 10 units.
d. Find the breakeven quantity.
e. For what number of units will a loss occur?

10. A firm transport farm food between cities in a country. The firm finds that the total cost C
and the total revenue R of transporting x units of a given food type as given by

𝐶 = 200𝑥 + 4000
𝑅 = 450𝑥 − 3𝑥 2
a. Find the breakeven point.
b. The 𝑥 value that maximizes the profit function, and the maximum profit.
c. How much profit is generated when 90 units of the commodity are produced?

11. Consider the following supply and demand functions:

S(x)= x2 − x − 6
D(P)= -2x2 + 6x + 8

a. Draw the graph for each function separately

b. Find the equilibrium point
c. Show the equilibrium point on another simplified graph
d. When will this market face a situation of shortage and show on
thesimplified graph.

12.Consider the following supply and demand functions:

D(x) = −3x + 138

S(x) = 5x − 280
d. Sketch graph for each function separately.
e. Find the equilibrium point.
f. Show the equilibrium point on another simplified graph.
g. When will this market face a situation of shortage and show on the simplified
graph.

13. Find the composite function g(h(x)) if

a. 𝑔(𝑢) = √𝑢2 + 6𝑢 + 3, h(𝑥) = 𝑥 − 1

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b. 𝑔(𝑢) = 3𝑢 − 𝑢2, h(𝑥)=
𝑥−4
3𝑢
c. 𝑔(𝑢)= 𝑢−1 , h(𝑥) = 𝑥 +4

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14. Find the possible solutions for x if:
a. 𝑥2 − 3𝑥 − 4 = 0
b. 𝑥2 + 4𝑥 − 12= 0
c. 𝑥2 = 49
d. 2𝑥2 + 4𝑥 − 3 = 0

15. Find the possible values of 𝑥 and y:

𝑥 + 𝑦 = 2200
1.5𝑥 + 4𝑦 = 5050

16. Suppose the production function for a certain company is given by the following Cobb-
Douglas function:
Q(K,L)=10 k0.4 L0.6
where K is capital investment in L.E. millions and L is the size of labor force in
thousands of workers.
a. Determine its returns to scale.
b. Compute the production output if K is L.E 105 million, and L is 215 thousand
workers,
c. Compute the production output if both K and L are cut in half.