Professional Documents
Culture Documents
ME-1 Solutions For Seminar 3
ME-1 Solutions For Seminar 3
Question 1:
d 2Q
2
= 6 L − 12
dL
6(1) – 12 = – 6 < 0
L = 1 is local maximum,
Q (1) = 1 – 6 +9 = 4
6(3) – 12 = 6 > 0
L = 3 is local minimum,
Q (3) = 27 – 6 (9) + 9 (3) = 0
d) Sketch a graph of the function
MR = 0
40 – 4Q = 0
10 – Q = 0
Q = 10
TR = 40Q − 2Q 2
TR = 40 10 − 2 102 = 400 − 200 = 200
c) How big the profit will be at this output?
Profit = TR – TC
TR = 200
TC = ½ Q2 + 5Q + 10
TC = ½ (102) + 5(10) + 10 = 50 + 50 +10 = 110
Profit = 200 – 110 = 90
dP Q D
dP dQ 1
= −2 =
dQ dP −2
Q =10, P = 40 − 20 = 20
dQD P 1 20
Thus E D
= D
= − = −1
dP Q 2 10
Profit = TR – TC
1 2
Profit = 40Q − 2Q − Q + 5Q + 10
2
2
1
Profit = 40Q − 2Q 2 − Q 2 − 5Q − 10
2
5 2
Profit = − Q + 35Q − 10
2
dProfit 5
= −2 Q + 35 = −5Q + 35
dQ 2
−5Q + 35 = 0
5Q = 35
Q=7
c) Find an output that maximizes the profit by
equating marginal revenue and marginal cost.
MR = dTr/dQ = 40 – 4Q
MC = dTC/dQ = Q + 5
40 – 4Q = Q + 5
35 = 5Q
Q=7
5 2
MaxProfit = 35 7 − 7 − 10 = 112.5
2
Question 3:
Partial derivatives:
a) z = x2y + xy2 + 20
b) z = 3xy – x2y2 + 23