ANSWERS. Part 1 2. i) 1000 ii) iii) iv) 501 v) x x a) i) 4 ii) 3,4 b) p=10,9

Similar documents
Exercises in Mathematcs for NEGB01, Quantitative Methods in Economics. Part 1: Wisniewski Module A and Logic and Proofs in Mathematics

Quantitative Techniques (Finance) 203. Derivatives for Functions with Multiple Variables

Alg2A Factoring and Equations Review Packet

Name: Math 10250, Final Exam - Version A May 8, 2007

Alg2A Factoring and Equations Review Packet

Final Examination Re - Calculus I 21 December 2015

Econ 214Q Second Midterm August 4, 2005

Final Exam Review. b) lim. 3. Find the limit, if it exists. If the limit is infinite, indicate whether it is + or. [Sec. 2.

THE USE OF A CALCULATOR, CELL PHONE, OR ANY OTHER ELECTRONIC DEVICE IS NOT PERMITTED DURING THIS EXAMINATION.

Final Exam Review - MAT 0028

BARUCH COLLEGE MATH 2205 SPRING MANUAL FOR THE UNIFORM FINAL EXAMINATION Joseph Collison, Warren Gordon, Walter Wang, April Allen Materowski

POD. Combine these like terms: 1) 3x 2 4x + 5x x 7x ) 7y 2 + 2y y + 5y 2. 3) 5x 4 + 2x x 7x 4 + 3x x

Economics 386-A1. Practice Assignment 3. S Landon Fall 2003

Econ Review Set 3 - Answers

MATH 105 CHAPTER 2 page 1

Note: I gave a few examples of nearly each of these. eg. #17 and #18 are the same type of problem.

( ) 4 ( )! x f) h(x) = 2cos x + 1

: Chain Rule, Rules for Exponential and Logarithmic Functions, and Elasticity

Chapter 2 Rocket Launch: AREA BETWEEN CURVES

Instantaneous rate of change (IRC) at the point x Slope of tangent

Monotone, Convex and Extrema

Final Exam Sample Problems

Worksheet A ALGEBRA PMT

Introductory Mathematics for Economics MSc s: Course Outline. Huw David Dixon. Cardiff Business School. September 2008.

ECON Answers Homework #3

ECON Micro Foundations

V =! Things to remember: E(p) = - pf'(p)

Name Date Student id #:

Integrating rational functions (Sect. 8.4)

Lecture 4 - Utility Maximization

Chapter 5 Self-Assessment

Name. 5. Simplify. a) (6x)(2x 2 ) b) (5pq 2 )( 4p 2 q 2 ) c) (3ab)( 2ab 2 )(2a 3 ) d) ( 6x 2 yz)( 5y 3 z)

EconS 424 Strategy and Game Theory. Homework #5 Answer Key

Money Demand. ECON 30020: Intermediate Macroeconomics. Prof. Eric Sims. Spring University of Notre Dame

Topic #1: Evaluating and Simplifying Algebraic Expressions

ALGEBRAIC EXPRESSIONS AND IDENTITIES

1 Economical Applications

Intro to Economic analysis

Unit 8 Notes: Solving Quadratics by Factoring Alg 1

Algebra with Calculus for Business: Review (Summer of 07)

Chapter 4 Partial Fractions

Probability and Random Variables A FINANCIAL TIMES COMPANY

2. Find the marginal profit if a profit function is (2x 2 4x + 4)e 4x and simplify.

Problem set Fall 2012.

Math1090 Midterm 2 Review Sections , Solve the system of linear equations using Gauss-Jordan elimination.

Calculus (Part-II) for Undergraduates

SYLLABUS AND SAMPLE QUESTIONS FOR MSQE (Program Code: MQEK and MQED) Syllabus for PEA (Mathematics), 2013

SYLLABUS AND SAMPLE QUESTIONS FOR MS(QE) Syllabus for ME I (Mathematics), 2012

Lecture 2: Marginal Functions, Average Functions, Elasticity, the Marginal Principle, and

CS 3331 Numerical Methods Lecture 2: Functions of One Variable. Cherung Lee

3.1 Solutions to Exercises

CCAC ELEMENTARY ALGEBRA

Introductory to Microeconomic Theory [08/29/12] Karen Tsai

Math 118 Final Exam December 14, 2011

Foundational Preliminaries: Answers to Within-Chapter-Exercises

Math Camp: Day 2. School of Public Policy George Mason University August 19, :00 to 8:00 pm.

PRELIMINARY EXAMINATION 2018 MATHEMATICS GRADE 12 PAPER 1. Time: 3 hours Total: 150 PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY

Decomposing Rational Expressions Into Partial Fractions

Chapter 3: Black-Scholes Equation and Its Numerical Evaluation

Aspects of Financial Mathematics:

Page 1 of 10 MATH 120 Final Exam Review

Review of Beginning Algebra MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Test # 4 Review Math MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Math Fundamental Principles of Calculus Final - Fall 2015 December 14th, 2015

Simplifying and Combining Like Terms Exponent

CHAPTER 4 APPENDIX DEMAND THEORY A MATHEMATICAL TREATMENT

The Theory of the Firm

ECONS 424 STRATEGY AND GAME THEORY MIDTERM EXAM #2 ANSWER KEY

3.1 Solutions to Exercises

I. More Fundamental Concepts and Definitions from Mathematics

Downloaded from

Logarithmic and Exponential Functions

MLEMVD: A R Package for Maximum Likelihood Estimation of Multivariate Diffusion Models

Today. Solving linear DEs: y =ay+b. Note: office hour today is either in my office 12-1 pm or in MATX 1102 from 12:30-1:30 pm due to construction.

The Normal Distribution

1.4. Arithmetic of Algebraic Fractions. Introduction. Prerequisites. Learning Outcomes

Gains from Trade. Rahul Giri

AP CALCULUS AB CHAPTER 4 PRACTICE PROBLEMS. Find the location of the indicated absolute extremum for the function. 1) Maximum 1)

Lecture 11. The firm s problem. Randall Romero Aguilar, PhD II Semestre 2017 Last updated: October 16, 2017

13.3 A Stochastic Production Planning Model

Multiplication of Polynomials

Review consumer theory and the theory of the firm in Varian. Review questions. Answering these questions will hone your optimization skills.

COPYRIGHTED MATERIAL. I.1 Basic Calculus for Finance

Equilibrium with Production and Labor Supply

Hedonic Equilibrium. December 1, 2011

You are responsible for upholding the University of Maryland Honor Code while taking this exam.

MODULE No. : 9 : Ordinal Utility Approach

Microeconomic theory focuses on a small number of concepts. The most fundamental concept is the notion of opportunity cost.

The Solow Growth Model. Martin Ellison, Hilary Term 2017

Graphs Details Math Examples Using data Tax example. Decision. Intermediate Micro. Lecture 5. Chapter 5 of Varian

Elements of Economic Analysis II Lecture II: Production Function and Profit Maximization

AMH4 - ADVANCED OPTION PRICING. Contents

Section 7.1: Continuous Random Variables

P(z) =.0.2X2 + 22x - 400

Q: How does a firm choose the combination of input to maximize output?

car, in years 0 (new car)

Mini-Lecture 6.1 The Greatest Common Factor and Factoring by Grouping

EXAM #2 Review. Spring Name: MATH 142, Drost Section # Seat #

ACCUPLACER Elementary Algebra Assessment Preparation Guide

0 Review: Lines, Fractions, Exponents Lines Fractions Rules of exponents... 5

Transcription:

ANSWERS. Part. i) 000 ii) 000 iii) 50 iv) 50 v) x +0x+0.. a) i) ii), b) p=0,9. a) i) 0 ii) 9,09 iii) 00 b) The INCREASE in cost incurred when you clean the lake above 50%, i.e. the marginal cost of further reduction after pollution has been decreased by 50%. 5. i) ii) 5 iii) /8 6. i) /5 ii) a,5 iii) 9 aa7 7. a) K= 5*L / b) x= -b/a 8. i) 50* ( + p 00 ) ii) 50* ( + p 00 ) iv) 50* ( + p 0 ) 00 iii) 50* ( + p 00 ) q 9. a) (notice the direction) b) c) d) neither e) 0. No. Not if x is negative. b) Yes. a) ln b) 0,5ln c)0, ln d) - ln. a) ln 8 ln = b) e ln ln a) tt = llllll bb aa b) llll aa c) d) ln ln8 ln ln e) e 6/7 f) ln ln 5. a) True b) False c) True d)false e) False 7. a) per cent of the male wage and 5 per cent of the female. b) 0.6 percentage points which is 7. per cent of male unemployment and 7.8 per cent of female unemployment. 8. 0 % 9. a) They increase by approximately % b) They decrease by 5 %, (Hint: Calculate the new wage and price level.)

Part.. i-vi are all linear functions except iv. Intercept Slope i. ii. -/ iii 0,5 - v 0 vi 5 0,5. i) y = x + ii. y = -.5x iii. y = 0.00x.5. a) x = and y = - b) x = and y = c) x = ; y = -5 and z =. P(, ), L=x-, M=,5-0,75x. 5 5 5. a) kk GG =. A one unit increase in public consumption increases GNP by k G units, ( bb rr) which is more than one. b) kk TT = bb. Thus, k T = -bk G. Since b <, k T < k G. If G and T are increased by the same ( bb rr) amount, the result is a net increase in Y. c) kk GG = Since (-t) <, ( b(-t)) > (-b) and the multiplicator is smaller than ( bb( tt) rr) in a) since some of the additional demand created by an increase in G is siphoned off by taxes. 6. a) No solution. x 0 for any real number x so x cannot be equal to - b) Two solutions, x = and x = - c) One solution, x = 0 d) Infinitely many solutions e) One solution, x = and y =. (x-) 0 and (y-) 0. The sum of two non-negative numbers can be = 0 if and only if they are both equal to zero. 7. a) K = 000; L = 000 b) x = 6, y = 6 c) x = 6; y = Part.. i) f(x)=(x+)(x+) so x=- and x=- are roots ii) f(x )= /6*(x+8)(x-) so x=-8 and x= are roots iii) f(x)= =(x-) so x = is a double root iv) no real roots. a) x = 0; x = ; x = - b) p(x) = (x-)(x + 7/ x -) so the zeroes are x = / ; x = ; x = - Part (note that many of the answers can be simplified.) Part.

. a) 0 b) x c) 90x 9 d) 0 (π is a constant number).. a) -g (x)/6 b) g (x)/. a) x b) x - c) x -,5 d)-,5a -.5 e) +[a+f (a)]/h a) b) +x c) 5x +8x d) x +x -/ e) ½ - x + 5x 5. a) x 5 -x -x b) 0t 9 +5t +t -t - c),5x 0,5-0,5x -,5 6. xx( xx+) 7. SS (pp) = pp dddd(pp) dddd Part. and xx = 5. a) x= b) x= ±, x = 0 c) x =0, xx = 5. a) y=-x b) y=x- c) yy = 7 9 xx =.5xx.75 d) x 9 ad bc (aaaa+bb). a) b) ( ct + d) (hint: yy(tt) = (aatt +bbbb+cc) (aatt + bbbb + cc) ) c) ( y + 8 ) 9 y 5. a) 6(x+) b) -5(-x) c) -(x+)(x +x-) - xx d) (Hint: FF = (xx + ) 0.5 ) xx + e) f) -66x(-x ) g) -6at(at +) - h) an(at+b) n- ( x ) / ( x + ) / 6. a) f (x)+ b) f(x) f (x) c) f(x)+xf (x) d) 0,5f(x) -0,5 f (x). 7. a) 0x(+x ) t 8. 5 t ( + ) 9. Aab(bt+c) a- 5( x + ) 0. a) b) 0,5(x+(x+x 0,5 ) 0,5 ) -0,5 (+0,5(x+x 0,5 ) -0,5 (+0,5x -0,5 )) ( x + x + ) 6 c) ax a- (px+q) b + x a bp(px+q) b-. a) aa (tt) aa(tt) + bb (tt) bb(tt) b) La ( t) + a( t) Bb ( t) b( t) LLLL (tt) aa(tt) + BBBB (tt) bb(tt). a) q(5-0,5x) -/ b) f (x n g(x))(nx n- g(x)+x n g (x)). a) 0x -6x b) -0,5x -,5 c) 0(+x ) 8 (+9x ). a) - b) g () (u(x))(u (x)) +g (u(x))u () (x) 5. a) 80 b)

Part. x. a) -e -x b) 6x exp(x ) c) e d) 5(x-)exp(x -x+) x. a) exp(x)*exp(exp(x )). b) 0,5(e t/ -e -t/ x x e e ) c) x x ( e + e ) d) z exp( z ) (exp( z ) ) / e) e x (+x). a) (x+) - b) x - c) lnx+ d) ln x (ln x) g) ex lnx+x - e x x + e) x + x.. a) x- b) e - x 5. a) x- b) e - x / ( x + ) 6. a) ( x )( x ) / b) x x (lnx+) c) + ( x ) x x x + + * y. x + 6 Part.. a) - b) 00 c) 0,5 d)-,5 e) 0 f) xx xx+ g) -0x (-x ) - h) xg ( x ) i) (+x)(+x) - j) bx b (a+x b ) - k) -b(ax+b) - g( x) Part Optimization (one independent variable). a) min (0, ); max (-, 6) b) min (-, -0,5); max (, 0,5) c) min (, 6 ); max (, 6 ) ; inflection point (0, 0) e) min ( /8, -6); max ( -/, 0), inflection point (, 0). a) Hint: Add and subtract to the numerator, then write as a sum of two quotients.. min (7, 0); max(, 6). a) L= (AK α ) -/β Q /β. This is the equation for the isoquant for production level Q (where Q is a constant). It shows the combinations of capital (K) and labour (L) required to produce Q units. 5 a) max point at (,5;,97) b) min point at (, ); max point at (, ) 6. a) V(x)= x(8-x) b) x= maximizes V(x). c) V(x) is strictly increasing when x< and x>9. V(x) is strictly decreasing <x<9. 7. b) No solution.

8. a) π= 70Q-Q -900 b) Q 6,97 or Q 5 c) Q=5. 9 a) No stationary points. b) min point at (0, 0); max point at (, e - ) 5

Part 5 Functions of more than one variable.. a) i) 0 ii)- iii) a b) i) ii) 5. a) 5/6 0K / L / b) α=5/6, The production function exhibits decreasing returns to scale.( α=5/6<) dz dz dk dk = x; = 6y = y; = x. a) dx dy b) dx dy dp 5 dp = 0x y y ; = 0x y 0xy c) dx dy df df df = yz + xy - z ; = xz + x ; = xy - xz. a) dx dy dz dy dy KL (al bk ) b) = ; dl = LK (bk al ) (al + bk ) dk (al + bk ) c) TT xx = xxxx xx yy yy yy +xx xx xx yy yy = 8xxyy xx (yy xx +6xx ) (yy +xx ) (yy +xx ) TT yy = (xx yy yy)(xx )(yy + xx ) 8yy (xx yy yy) (yy + xx ) If you use logarithmic differentiation you get the same answers in this form: x x T x= x (x y y) ; T y= 8y (x y y) y + x (y + x ) y y + x (y + x ) 5. a) dz = (x-8y)dx (8x+y )dy b) total derivative = z (t) = t + 60 t ; total differential dz = (t + 60 t )dt c) z(t) = t +0t -t-. a) 00 b) dq =,5K -/ L / dk + 5K / L -/ dl. With K=65; L = 6; dk=0.05; dl=0. Q(6.05; 65.) 00+0.565+0.06 = 00,75 Analogously, Q(00, 675) 58.5 c) Q(6.05; 65.) 00.7 Q(00; 675) ) 58,90099 6

Part 6 Optimisation of functions of several variables Part 6. Unconstrained optimisation. a) The only stationary point is (, ) b) The stationary point is (, 9). a) f(, -)=0 c) (, -) is a global minimum point of f. L= 5,75; K=,8. a) min point f(, )= -; saddle point f(0, 0)=0 b) max point f(, )= c) min points at f(0,5, 0,5) and f(-0,5-0,5)= -0,065; saddle at f(0, 0)=0. d) we have no way of knowing using this method. 5. a= ; b= -; c= /7. Part 6. Constrained optimisation. f(/, /) = 5/ c) λ= implies that the rate of change in the optimal value of the objective function f(x,y) when the constraint is slightly increased is one.. a) Stationary points at (, ), (-, -), (-, ) and (, -). Minimum values at f(-, ) and f(, -)=-, Maximum values at f(, ) and f(-,-)=. (x +y =8 is a circle with its centre at (0; 0) and radius 8. The points for which f(x, y) = k are on a graph y = /x which has a similar shape to y= /x. For each k>0, it has one branch in the first quadrant and one in the third, for each k<0 it has one branch in the second and one in the fourth quadrant. The larger k is, the further from origin is y = k/x.). (0.a 0.a) is a min point.. U(0, 60)= 0*0 / 60 / 5. xx = RR qq(llllll llllll) ; yy = RR pp(llllll llllll) (pp+qq) (pp+qq) 6. Min cost=50 at (0, 0) 7. Min cost 80,5 when K=80* / and L= 80* -/ 8. max at F(, )=ln 8. (Hint: Use the rules of logarithms to simplify or find the point that maximises G(x, y) = xy instead.) 7