Part 1

1. C
2. D
3. B
4. B
5. E
Part 2
Q1
Suppose that the firm's cost function is given in the following schedule (where Q is the
level of output):
Output Total
Q (units) Cost
0 7
1 25
2 37
3 45
4 50
5 53
6 58
7 66
8 78
9 96
10 124

Determine the (a) marginal cost and (b) average total cost schedules
Q2
2. Differentiate the following functions:

a. TC = 50 + 100Q - 6Q2+.5Q3

Answer: dTQ/dQ = 0 + 1*100Q11-1 – 2*6Q2-1 + 3*0.5Q3-1

Dtc/dQ = 100 – 12Q + 1.5Q2

b. ATC = 50/Q + 100 - 6Q+.5Q2

Answer: dATC/dQ = -1*50Q1-1 – 1*6Q1-1 + 1*0.5Q2-1
dATC/Dq = -50/Q2 – 6 + Q

c. MC = 100 - 12Q + 1.5Q2

Answer: dMC/dQ = 0 – 1*12Q1-1+ 2*1.5Q2-1
dMC/dQ = -12 + 3Q

d. Q = 50 - .75P

Answer: dQ/dP=0-1*0.75P1-1
dQ/dP = 0.75

e. Q = .40X1.50

Answer: dQ/dx=1.5*0.4X1.5-1

dQ/dX=0.6X0.5