MAT 211

SPRING 24

SSM

ASSIGNMENT 2

SUBMISSION: 25TH FEBRUARY

1. 1. The demand function faced by a firm is p=500-0.2x and its cost function is
c=25x+10000 where p is the price [in taka] , x is the output[in grams] and c is the cost.
Find the output at which the profit of the firm is maximum. Also find the price it will
charge.
𝑥3
2. The cost function of a firm is given by𝐶(𝑥) = 300𝑥 − 10𝑥 2 + . Calculate the output at
3
which the marginal cost is minimum. Will it be the same for the output at which average
cost is minimum?
3. A manufacturer estimates that when q units of a particular commodity are produced
each month the total cost will be C=0.4q2-3q+10 dollars and all units can be sold at a
price of 5p=45-q $/unit . Determine the level of production that results in maximizing
profit. What is the corresponding optimal price? How much is the profit?
4. For the consumption function C=34+0.68Y
i) Find the marginal propensity to consume and interpret.
ii) Find the marginal propensity to save and interpret.
5. Find the output needed to maximize profit given that the total cost and total revenue
functions are TC = 2Q and TR = 100 ln(Q + 1) respectively.