A

Type of assessment/ Individual Assignment 1 Qualification/ BCom (Hons)

Tipe assessering: Kwalifikasie:
Module code/ ECON 324
Modulekode:
Module description/ Quantitative Economics Max/ 140
Modulebeskrywing: Maks:
Examiner(s)/ Prof Gisele Mah Date/ 11/09/2023
Eksaminator(e): Datum:
Time/ 10:00 a.m
Tyd:
INSTRUCTIONS:

1. NO LATE ASSIGNMENT WILL BE ACCEPTED AFTER 10:00 PM ON MONDAY

11 SEPTEMBER 2023.
2. The assignment should be handwritten and submitted individually
3. Give your answers to THREE decimal places.

QUESTION 1 (39 MARKS)

6 − 1 1 
 
Given the following matrix: A = 2 1 2
1 − 2 1

1.1 Using the Laplace expansion method, expand the 2ndrow to find det (A) (4 marks)
1.2 Use the Sarrus` rule to find the determinant of matrix A (4 marks)
Consider a system of equations of equilibrium prices of three interdependent commodities.
2P1 + 3P2 + 3P3 = 32
2P1 + 4P2 + 3P3 = 37
2P1 + 3P2 + 4P3 = 35
1.3 Use Gaussian elimination to solve this system for equilibrium prices (5 marks)
1.4 Use Gauss-Jordan elimination to solve this system for equilibrium prices (5 marks)
1.5 Use Cramer`s rule to solve this system for equilibrium prices (5 marks)

Solve the following systems of equations

3x + 3y + 6z = 12

x - 3y + 5z = 5

1
 2x + 10y - 3z = 0

1.6 Gaussian elimination (5 marks)

1.7 Gauss- Jordan elimination (5 marks)

Consider a system of equations of equilibrium prices of three interdependent commodities use
Cramer`s rule to solve this system for equilibrium prices.

1.8 Use Cramer's rule to solve the equations (3 marks each)

a) y= 10x+12 b) P = 50-2Q

4x+ 2y=36 p=5+3Q

QUESTIONS 2 (20 MARKS)

A furniture manufacturer makes two types of furniture – chairs and sofas. The production of
the sofas and chairs requires two operations – carpentry and finishing. Manufacturing a chair
requires 3 hours of carpentry and 9 hours of finishing. Manufacturing a sofa requires 3 hours
of carpentry and 3 hours of finishing. The factory has allocated at most 90 labour hours for
carpentry, and 180 labour hours for finishing. The profit per chair is R90 and the profit per sofa
is R75.
2.1 The above product-mix situation can be modelled as a linear programming problem.
Write down the inequalities to illustrate the data above and formulate the profit
maximising objective function.
2.2 Represent the inequalities graphically and clearly shade the feasible region.
2.3 Determine all corner point feasible solutions.
2.4 Find the optimal number of chairs and sofas that maximises the profit.

QUESTION 3 (34 MARKS)

3.1 Find the first derivative of each of the following using the Chain rule. ( 3 marks each)
a) 𝑦 = (2𝑥 − 5)7

b) 𝑃 = √𝑄 2 + 12
3.2 Find the first derivative of each of the following using the Quotient rule. (3 marks each)

2
 ln 𝑥
a) 𝑦 = 𝑥
𝑡 2 +1
b) 𝑦 = 𝑡 2 −1

3.3 Find the first derivative of each of the following using the Product rule. (3 marks each)

 1
y = 

+ 1 (x 2
−1 )
 x 
2

1
y =

x − 1 1 + x 2( )
2 

3.4 Determine and classify all the critical points of the following functions. (3 marks each)

f (x, y ) = 3xy − x 3 − y 3

f ( x, y ) = x 3 + y 3 + 3 xy + 3

3.4 Differentiate each of the following, and give your answer with positive indices only ((2
marks each)

5 1
a. 𝑦 = 10 + 𝑥 2 + 𝑥 2
𝑄3
𝑏. 𝑃 = + 70𝑄 − 15𝑄 2
3

𝑐. 𝑥 2 + 7𝑥 + 5
5
𝑑. 𝑦 = 𝑥 2

𝑒. 𝑦 = 5√𝑥

QUESTION 4 (22 MARKS)

4.1 Locate possible turning points for the following functions. (2 marks each).

a) 𝑃 = −2𝑄 2 + 8𝑄
a) 𝑦 = 𝑥 3 − 3𝑥 2 − 9𝑥
𝑄3
b) 𝑇𝐶 = − 2𝑄 2 + 3𝑄 + 84
3

c) 𝑇𝑅 = (200 − 2𝑄)𝑄
d) y = x 2 − 6x + 6
e) 𝑦 = 2𝑥 3 − 3𝑥 2

3
3.2 Find the maximum/minimum values of each of the above functions. (2 marks each)

a) 𝑃 = −2𝑄 2 + 8𝑄
b) 𝑦 = 𝑥 3 − 3𝑥 2 − 9𝑥

𝑄3
b) 𝑇𝐶 = − 2𝑄 2 + 3𝑄 + 84
3

c) y = x 2 − 6x + 6
d) 𝑦 = 2𝑥 3 − 3𝑥 2

QUESTION 5 (26 MARKS)

The demand function for a monopolist is 𝑄 = 120 − 3𝑃

5.1 Find the expression for TR, MR, & AR. Evaluate TR, MR & AR at 𝑄 = 15. Hence,
explain in words the meaning of each function at Q=15. (9 marks)
5.2 Calculate the value of Q for which AR=0. Calculate the value of MR when AR=0. Is it
sensible for a monopolist to sell this value of Q? (5 marks)

The demand function for a good is 𝑃 = 125 − 𝑄1.5. A firms’ fixed costs are 1000 and
variable costs are given by 3Q.

5.3 Write down the equation for TC. Calculate the value of TC at Q=20. (3 marks)
5.4 Write down the equation for MC. Calculate the value of MC when Q=2 (2 marks)

A firms total revenue is given by the equation 𝑇𝑅 = 90𝑄 − 3𝑄 2

5.5 Find the value of Q for which TR is maximized, hence calculate the maximized TR.
(4 marks)
5.6 Write the equations for average revenue (AR) and marginal revenue functions (MR). (2
marks)

TOTAL: 140 MARKS