BEEQ1013 INTRODUCTION TO MATHEMATICAL ECONOMICS

NO. MATRIK/MATRIC NO.:_______________________

QUESTION 1 (21 MARKS)

a) Given the following matrices;

A= [ ]

B=[ ]

C=[ ]

Answer the following questions;

i) Identify the column matrix and what is its transpose? (2 marks)

ii) Solve for matrix D, if matrix D = B x A. (3 marks)

b) Solve for matrix W, where I is identity matrix.

[ ] [ ] (3 marks)

c) The equilibrium condition for three related markets is given by

3Px + 7Py 4Pz = 11
2Px 8Py + 5Pz = 18
9Px + 6Py 2Pz = 53
Use the Cramers rule to answer the following questions;
i) State the equation system in the form of Ax = d. (2 marks)

ii) Find | | (2 marks)

iii) Find the equilibrium price (Px*, Py* and Pz*) for each market. (9 marks)

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 BEEQ1013 INTRODUCTION TO MATHEMATICAL ECONOMICS
NO. MATRIK/MATRIC NO.:_______________________

QUESTION 2 (18 MARKS)

a) Find the indicated limit:

i) (2 marks)

ii) (3 marks)

b) Determine all values of x at which the function is discontinuous.

i) ( ) (3 marks)

ii) ( ) (3 marks)

c) Given the following functions

( ) { ; ( ) {

i) Show that ( ) exist by studying the one-sided limits of f as x approaches
x = 0. (2 marks)

ii) Show that ( ) does not exist. (2

marks)

d) Given the average cost function to produce one unit of cap is;

( )

( ) is measure in RM. Evaluate ( ), and interpret your result. (3

marks)

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 BEEQ1013 INTRODUCTION TO MATHEMATICAL ECONOMICS
NO. MATRIK/MATRIC NO.:_______________________

QUESTION 3 (23 MARKS)

a) Find the of the following function;

i) ( ) (2 marks)

ii) ( ) (2 marks)

iii) (3 marks)

iv) (3 marks)

b) Find the first and second derivatives of the following function:

i) f(x) = (8x 4)3 (2 marks)

ii) f(x) = ln 2x (2 marks)

c) The monthly demand for certain brand of perfume is given by the demand equation
P = 0.02x + 300 (0 x 15000)
where P denotes the wholesale unit price in dollars and x denotes the quantity demanded.
Suppose the cost (in dollars) of producing x units of the perfume is;
C(x) = 0.000003x3 0.04x2 + 200x + 70000

i) Find the revenue function R, the profit function P and average cost function .
(5 marks)

ii) Find the marginal average cost function

(2 marks)

iii) Analyze the economic implications if you get negative value in .

(2 marks)

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 BEEQ1013 INTRODUCTION TO MATHEMATICAL ECONOMICS
NO. MATRIK/MATRIC NO.:_______________________

QUESTION 4 (16 MARKS)

The demand function for the sport shoe is given by;

P = 0.1x2 0.4x + 1.6
where x (measured in units of a thousand) is the quantity demanded per week and P is the unit
price in RM.
a) Analyze the rate of change of the unit price when the quantity demanded is 10,000 units?
(4 marks)

b) Find the level of production that will maximize the revenue.

(6 marks)

c) Calculate the amount of maximum revenue.

(3 marks)

d) Prove that the revenue level is at a maximum.

(3 marks)

QUESTION 5 (22 MARKS)

a) Determine the intervals where the graph of the function f(x) = x + is concave upward and
where it is concave downward.
(8 marks)

b) The demand for Durian between 2000 and 2015 is estimated to be;
D(t) = 0.0007t2 + 0.0265t + 2 (0 t 15)
where D(t) is measured in million and t = 0 corresponds to the year 2000. The supply of
Durian over the same time period is estimated to be;
S(t) = 0.0014t2 + 0.0326t + 1.9 (0 t 15)
where S(t) is also measured in million.

i) Find an expression G(t) giving the gap between the demand and supply of Durian
over the period in question.
(3 marks)

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 BEEQ1013 INTRODUCTION TO MATHEMATICAL ECONOMICS
NO. MATRIK/MATRIC NO.:_______________________

ii) Solve for expression G(t) to get the interval where G is decreasing and where it is
increasing. Interpret your result.
(7 marks)

iii) Find the relative extreme of G. Interpret your result.

(4 marks)

END OF QUESTIONS