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Math 116
Review 1
1. Suppose that the total cost of manufacturing q units of a certain product is C  q thousand dollars, where
C  q  q3  30q2  500q  200
a) Find the total cost and the average cost of producing 10 units.
b) Find the cost of producing the 10th unit.

f  x  h  f  x
2. Let f  x   4 x 2  3x  2 , evaluate and simplify the difference quotient , where h  0 .
h

3. Find all points having an x-coordinate of 4 whose distance from the point  1,2 is 13.

4. The owner of a toy store can obtain a popular board game at a cost of $15 per set. She estimates that if each
set sells for x dollars, then 5  27  x  set will be sold each week.

a) Express the owner’s weekly profit as a function of selling price x.

b) Estimate the optimal selling price.
c) How many sets will be sold each week at that optimal price?

5. A missile is projected vertically from an underground bunker in such a way that t seconds after launch, it is s
feet above the ground, where s  t   16t 2  800t  15

a) How deep is the bunker?

b) Determine when the missile is at its highest point.
c) What is the missile maximum height?

6. George runs a copying service, and he charges 7 cents per copy. The cost of the copy machine is $8000, the
cost of a life time maintenance service is $4000, and the cost of making a single copy is 3 cents. Find the
cost function, the revenue function, the profit function, and the break-even point.

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7. A manufacturer buys $28,000 worth of machinery that depreciates linearly so that its trade-in value after 12
years will be $1,000
a) Express the value of the machinery as a function of its age.
b) Compute the value of the machinery after 7 years.

8. A company has been selling lamps at the price of $50 per lamp, and at this price consumers have been
buying 3000 lamps a month. The company wishes to lower the price and estimate that for each dollar
decrease in the price, 1000 more lamps will be sold each month. The company can produce the lamps at a
cost of $29 per lamp.
a) Find the optimal selling price per lamp that will maximize the profit.
b) What is the maximum profit at that optimal selling price?

9. The supply function S  x  and the demand functions D  x  for a particular commodity are as follows:

385
S  x   2 x  15 and D  x   , where x is the level of production of that commodity.
x 1
a) Find the equilibrium production level xe and the corresponding equilibrium price pe .
b) Draw a rough sketch of the supply and demand curves on the same graph.
c) For what interval of x is there a market shortage? A market surplus?

10. A rectangular piece of cardboard measuring 20 inches by 45 inches is to be made into a box with an open top
by cutting equal size squares of length x from each corner and folding up the sides.
a) Give the restrictions on x and determine a function V that gives the volume of the box as a function of x.
b) For what value of x will the volume V be maximum? What is this maximum volume?

11. An open box with a square base is to be built for $48. The sides of the will cost $3 per square meter, and the
base of the box will cost $4 per square meter. Express volume of the box as a function of the length of its
base x.

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12. A business manager determines the total cost of producing x units of a particular commodity may be modeled
by the function C  x   7.5x  120,000 (dollars).

a) Find the average cost A x  .

b) Find lim A  x  , and interpret your result.

x 

x2  9  3
13. Find the limit (if it exists). lim
x0 x2

x
14. Find the limit (if it exists). lim
x 0 x 1 1

15. (4 point each) Find the limit (if it exists). If the limiting value is infinite, indicate whether it is  or  .

x2  x  6 x 2
a) lim 2 b) lim
x2 x  3x  2 x 4 x4

16. ( 2 point each) Find the limit (if it exists). If the limiting value is infinite, indicate whether it is  or  .
2 x 2  5x  3 x2  2
a) lim b) lim
x x 2  2 x  8 x  x  1

1  2 x3 3x 2  3x  7
c) lim d) lim
x x  1 x x 3  5 x  1

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Answers:
1. (a) C 10  $3,200,000 , AC 10  $320,000 (b) Cost of the 10th unit  $201,000

2. DQ  8 x  4h  3 3. Points are  4, 10 and  4,14 

4. (a) P  x   5  27  x  x  15 (b) Optimal price  $21 (c) Number of sets/week  30 sets

5. (a) 15 feet (b) 25 seconds (c) maximum height = 9,985 feet

6. C  x   12,000  0.03x , R  x   0.07 x , P  x   0.04 x  12,000 , Break-even point: x  300,000 copies

7. (a) V t   2,250t  28,000 (b) V  7  $12,250

8. (a) Optimal selling price/lamp  $41 (b) Maximum profit  $144,000

9. (a) xe  10 units, pe  $35

(b)
(c) Market shortage: 0  x  10
Market surplus: x  10

10. (a) 0  x  10" ; V  x   x  20  2 x  45  2 x 

(b) x  4.32"  Vmax  1,784.38 Cubic inches

x3
11. V  x   4 x  Cubic meters
3

120,000
12. (a) A  x   7.5  (b) $7.5 (contribution of fixed costs to the average cost decreases to zero)
x

1 1
13. x  14. 2 15. (a) 5 (b)
6 4

16. (a) 2 (b)  (c)  (d) 0

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