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Advanced Maths Sample Test
Advanced Maths Sample Test
Advanced Maths Sample Test
Question 2 (2,0 marks): Assume that an economy is based on 3 industrial sectors 1, 2 and 3.
The technology matrix is A, and the final demand vector (in billions of dollars) is B
𝐴 = [ ], 𝐵 = [ ]
a) (1,0 marks) total demand for each sector. (Students can use any method to solve the
system of equations. Show all your works and do not use calculator for solving linear
equations system)
b) (1,0 marks) Meaning of the value 𝑎12 ?
Question 3 (3,0 marks): A business produces 2 types of products with output 𝑄1 and 𝑄2 to
supply to the market at the price 𝑃1 = and 𝑃2 = for each product. Knowing the total cost
function is
𝑇𝐶 (𝑄1 , 𝑄2 ) = 𝑎𝑄12 + 𝑏𝑄1 𝑄2 + 𝑐𝑄22 + 𝑑𝑄2 + 𝑒 (𝑎, 𝑏, 𝑐, 𝑑, 𝑒 𝑤𝑖𝑙𝑙 𝑏𝑒 𝑐ℎ𝑎𝑛𝑔𝑒𝑑)
a) (2,0 marks) The maximum profit?
b) (1,0 marks) Find the maximum profit if the firm cannot produce the output 𝑄1 .