Applied Mathematics II (ECO 244) Mid Exam / Assignment North South University

Total Marks: 35

The following questions 1 to 3 are based on the graph above: (2 + 2 + 2 = 6 marks)

1) Which of the following option is correct?

a) 𝑓 −2 = −2 b) 𝑓 −2 = 0 c) 𝑓 −2 = 2

Explain the reason behind your choice: _____________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

2) Which of the following option is correct?

a) 𝑓 ′ 3 < 0 b) 𝑓 ′ 3 = 0 c) 𝑓 ′ 3 > 0

Explain the reason behind your choice: ____________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

3) Which of the following is correct?

a) 𝑓 ′′ 1 < 0 b) 𝑓 ′′ 1 = 0 c) 𝑓 ′′ 1 > 0

Explain the reason behind your choice: _____________________________________________________

_____________________________________________________________________________________
Applied Mathematics II (ECO 244) Mid Exam / Assignment North South University

Total Marks: 35

Question 6 (3 marks)

You are the manager of a business firm. You have two employees working under your supervision. There
are four tasks (jobs) that you have to divide between the two employees.

Discuss the concept of optimization using the given scenario. What are the choice variables and what
could be the objective function in this case? There is no need to perform any calculations.

Question 4: (8 + 1 = 9 marks)

The profit function of a business firm producing only two products (A and B) are as follows:

𝜋 = 𝑓 𝑥, 𝑦 = 12𝑥 − 2𝑥 2 + 18𝑦 − 2𝑦 2 − 𝑥𝑦

Here, 𝑥 represents amount of product A and 𝑦 represents amount of product B.

a) What is the amount of product A and B that the business should produce to maximize the profit?

b) What is the maximum profit that this business firm can generate?

Question 5: (1 + 10 = 11 marks)

A business firm producing only two products (A and B) is under a contract to produce 35 units for a
client.

The total cost function of the business firm is as follows:

𝐶 = 𝑓 𝑥, 𝑦 = 5𝑥 2 + 15𝑦 2

Here, 𝑥 represents amount of product A and 𝑦 represents amount of product B.

a) What should be the aim of the business firm in the given situation? Explain the logic behind your
answer.

b) How can the business firm achieve the aim you stated above? Show the steps in your calculation.

Please scroll down to the next page

Applied Mathematics II (ECO 244) Mid Exam / Assignment North South University

Total Marks: 35

Question 3: (3 + 1 = 4 marks)

The following is the total cost function of a business: 𝐶 = 𝑓 𝑄 = 𝑄 3 − 4𝑄 2 + 12𝑄

a) What amount should the business firm produce to minimize the average total cost? Show all the steps
in your calculation.

b) How can a business firm use the information you found above?

Question 7 (2 marks)

The following is the production function of a business: 𝑄 = 𝑓 𝐾, 𝐿 = 5𝐾 0.4 𝐿0.3

What are all the business information you can obtain from the given production function? There is no
need to perform any mathematical calculations. Answer in words.

End of Mid Term (Assignment) Questions