East West University

Summer 2016
MAT 110: Mathematics for Business and Economics I
Section-7
Course Instructor: Mir Tanzim Nur Angkur (MTNA)
Senior Lecturer
Assignment-4
Q1. Given the market model with price-demand price-supply functions:

P = 7

Q
3

and

P=4+

Q
8

Find the equilibrium price and quantity by elimination and substitution method.
Q2. From the total-cost function C (Q) = Q3 5Q2 +12Q +75, find the MC (Q) function.
Q3. Given the average-cost function AC (Q) = Q2 4Q + 174, find the total cost function C
(Q) and MC(Q).
Q4. From the information below:
C (Q) = 3Q2 +7Q + 12 and R (Q) = 10Q Q2
(i) Find the profit function P(Q)
(ii) Find the profit maximizing output and maximum profit.
(iii) Graph the profit function for 0 Q 200 showing clearly maximum profit.
Q5. Given the production function Q = 96K0.3L0.7.
(i)Find the MPK and MPL.
(ii) Is MPK a function of K alone or both K and L?
(iii) Which one is more productive K or L assuming the firm employs 200 units of K and 300
units of L?

Instruction to students:

Write your answers neatly.

You should submit the assignment individually.
Last date of submissions: 8th August, 2016 (Monday)