ISCPREVIOUS YEARS

UNSOLVED QUESTIONS
Aestion 1. Given the total cost function X units of a
nmodity as : Question 4. The fixed cost of a new product is 18,000 and
1 the variable cost is 550 per unit.. If the demand function
C(x) = x +*-8x +5 p () =4000 - 150 x, find break-even points. [ISC2007]
the marginal cost function. Question 5. The average cost function associated with
reaverage cost function. producing and marketing x units of an item is given by
he slope of average cost function. 50
[ISC BUSINESS MATHS 2005] AC = 2X - 11+. X Find :
Astion 2. Acompany is selling a certain product. The
end function of the product is linear. The company can (i) the total cost function and marginal cost function.
Z00 units when the price is 8per unit. When the price (1) the range of values of the output x, for which AC is
s per unit, it can sell 3000 units. Determine : decreasing. [ISC 2008]
The demand function.
be total revenue function.
Question 6. The cost of manufacturing of certain items
[ISC 2005]
consists of 1,600as overheads, ? 30 per item as the cost
ton 3. Atelevision manufacturer finds that the total cost
te production and marketing of x number of television sets
of the material and the labour cost for x items
100
J,-300 - 4200 x + 13500 produced. How many items must be produced to have a
is sold for 8400. Determine the break-even minimum average cost?
[ISC 2006] [ISC 2009]

ANSWERS 5 2x 5
1 2. (i) 16-0.004 xx (ii) 16x -0.004 X
1. ) x+ 2x-8 (i)x+x- 8+ (i) 3 +1-
3

3. 5.9 units 4. 5 or 18 5, () 4x- 11 (i) 0 <x<5

6. 400 items.
 WATSAL ISC MATHEMATICS HANDBOOK Claes XII

ISCPREVIOUS YEARS
SOLVED OUESTIONS

Question 1. Gven that the total cost function for x unils of a

commOity is Clearly, from (i) and (i), d(AC) L
(MC - AC) Ans.
dx
C(*) + 3x - 7x + l6 Question 3. A conpany producES 3 Corninodty .
24.000 fixed cost. The variable cost iS estimatadi .
() Find the Marginal cost (MC). 25% of the total revenue recovered on selling the protcs
(i) Fing the Average cost (AC). a rate of R8 per unit. Find the following:
() Prove that : Marginal average cost () Cost function
x(MC) C(x) (i) Revenue function
(MAC) = [ISC 201l]
(ii) Break-even point. [ISC 2013, 19)
1 Solution : (1) The variable cost of producing x units
Solution : Since C(x) =÷x+3x-7x +16
3 = 25% of 8x=2x
dC 3z2 :.Total cost of producing x units
(1) Marginal cost = dy + 6x -7 = x+ 6x - 7. C(x) =TFC +TVC=(24,000 +2 x)
3 Ans.
Ans.
(iü) Price of one unit =78
C(x) .. Total revenue on selling xunits =R () =pX=8x Ans.
(i) Average cost =
3
+3r-7x+16 (iiü) At break-even values
16
C(«) =R () 24000 +2x=8x
+ 3x 7 + X=4000 Ans.
3 Ans.

(ii) Marginal average cost Question 4. Afirm has the cost functionC=
dc 3
d - C(«). +111x + 50 and demand function x = 100 -P.
de-(AC) = ()Write the total revenue function in terms of x.
() Formulate the total profit function P in terms of x.
x (MC) - C(*) Ans. (ii) Find the profit maximising level of output x. [ISC 2014

Question 2. if the total cost function is given by Solution : C(x) = -7x + 111x + 50
C=a-b CX*, where x is the quantity of output, show that: 3

(AC) - -(MC - AC), where MC is the P= 100-x

X marginal cost and (i) R) = Px = 100 x-x Ans.
AC is the average cost. (iü) P() = R() - C«)
(ISC 2012]
Solution :Cx) =a + bx +cx
P(x) = (100x -*)--7+11lx +50
C(x) = a + bx + cx, AC = C(x) 3

dC
=*+b+
X
x and MC = =b+ 2cx + 6x- 11x 50 Ans.
3
d(AC) +c dP
iSGPREUIaUS
YEARS 2 ...(i) (üi) = -x + 12x - 11
de
Also,
For maximum and dP
(MC - AC) = b+2ox - minimum profit, dx
=0
-b-a
’-12x +11 = 0, i.e., x=11, 1
+c ..i)
= -2x + 12 > 0 at x = 1
 APPLICATION OF CALCULUS IN COMMERCE AND ECONOMICS
d'p Hence, 4 units,each costs 6 are required to maximise the
and -= -22 + 12 < 0 at x=11
dy2 revenue.
Therefore, profit maximising is at x = 11units. Ans. Also, mnax. revenue = (24(4) - 34)°] =24 Ans.
Question 5. The average cost function AC for a
36 commodity Question 7. The dermand for a certain product is represented
sgiven by AC = x +5 + X in terms of output x. Find the :
by theequation p = 500 + 25x in rupees, where x is
Ototal cost and the marginal cost as the functions of x. 3
outout for which AC increases [ISC 2015, 101 the number of units and p is the price per unit. Find :
36 () the marginal revenue function.
talution : The average cost function AC =x+5+
(i1) the marginal revenue when 10units are sold.
[ISC 2017]
oTotal cost function C() =xx AC =x*+5x+36
The marginal cost function MC = dC =2x +5 Ans. Solution: Total revenue R= px = 500x + 25x

() Output for which ACincreases () Marginal revenue function =

dR
= 500+ 50x - x
d 36 dx
(AC) >0 ’1 >0
dx Ans.

x-36 >0 ’X>6 (ii) Marginal revenue at X= 10is

(rejecting x<-6as number of items cannot be negativ¹) dR 100 = 900.
Ans. = 500 + 50(10) - 10 = 1000
de x=10 Ans.
Question 6. The demand function is x = 24 - 2p where x
3 Question 8. A manufacturer's marginal cost function is
500
is the number of units demanded and p is the price per unit. Find the cost involved to increase production
Find: (i) the revenue function R in terms of p. /2x + 25
demanded for [ISC2018]
(0) the price and the number of units from 100 units to 300 units.
which the revenue is maximum. [ISC 20I6]
500
Solution: Marginal cost, MC =
Solution : x = 24 - 2p 3x = 24- 2p V2x + 25
3 500
dc
24 - 3x
p =
dx J2x + 25
2
500 2r+25)l/2 + k
px=÷(24x-3x) Ans. dx = 500o 1
ine revenue function R) = 2
x 2

To maximize revenue, differentiate R(x) w.r.t. x

dR -[24 - 6x]
C(x) = 500/2x + 25 + k
=

2 At x= 100
de
C(100) = 500/2 x 100 + 25 + k
For max, revenue, dR = 0 = 500 x 15 + k = 7500 + k
dx
At x=300
(24 - 6x) = 0 ’ x=4 C(300) = 500V2 x 300 + 25 +k
= 500x 25 + k = 12500 + k
d'Ro-6]
d2 <0 2 Cost involved to increase production from 100
units to 300 units
Maxima at x=4
So.9, at 4 units revenue will be maximum. =(12500 + k) - (7500 + k) = 5000.
and at x=4, P = 24 - 3(4) Ans.
2
 324 vATSAL ISC MATHEMATICS HANDBOOK Class XII

Question 9. A product can be manufactured at a total cost

(ii) d -(AC) = 2 - 50
>0
Ci! + 100x 40, where x is the imber of units dx
100
’ 25 X>5 or x<-5
produced. The price at which each unit can be sold is given But x is the
X number of units which cannot be negative
by p 200 Determine the production level x at X>5
400
.:. Range =xe (5, o) (neglectingx< -5)
which tthe profit is maxiMum. What is the price per unit and Question 11. Given the total cost function for x Ans.
tota profit at the levelof production? [ISC 2018] commodity as : unts
1
Solution : Cost function, C(*) = + 100x + 40 and C(x) = x + 3x-16x 2
100 3
Find : (i) Marginal cost function,
Demand function is P = 200
(i) Average cost function.
400 [ISC2018]
Revenue function, R(x) = px = 200x
x Solution : Cost function, C(x) =÷x +3x- 16x +2
400
Profit function, dc 1
(i) Marginal costfunction,MC= x 3r + 6x -16
dx 3
P(x) = R(x) C(x) = 200x x + 6x -16. Ans.
400
(ii) Average cost function, AC
+ 100x + 40 = 100x - 40
100 80 1
C(x)
-3 + 3x - 16x + 2
3
To maximize the profit, differentiate P(x), w.r.t. x, we get
X
dP
= l00 - 1
dx 40 = x + 3x - 16 + 2 Ans.

For maximum profit dP = 0

dx Question 12. The total cost function for a production is gve
100 - = 0 ’ = 100 r : 4000
by C(x) = x-7x + 27, Find the number of unts
40 40 4
So, profit is maximum at x = 4000. Ans. produced for which M.C. = A.C. (M.C. = Marginal Cost ard
4000 A.C. = Average Cost). [ISC 2019}
.. Price per unit = 200 - =200-10 =7190 and total
400
Solution: Given, Cx) = -7x+ 27
profit = 100(4000) - (4000) - 40 = 199960. Ans.
4
80 dc 3
M.C. = =,X-7
Question 10. The average cost function associated with dx2
producing and marketing x units of an iterm is given by Also, M.C. = A.C. 3 3

AC - 2x - 11 +
50
Find: x-7=÷|x*-7x+| X 4
X
3
(i) The total cost function and marginal cost function. -7x = 3 -7x + 27
4
27
(ü) The range of values of the output x for which AC is
’ x =6
increasing. |ISC 2018] Ans.
50
Hence, the number of units produced is 6.
Solution: Given, AC = 2x - 11 + with
Question 13. A company produces commodity 25%
* 24,000 as fixed cost. TIhe
variable cost estimates tobe
(i) Total cost function: TC = AC × x = 2x - 1lx + 50 of
the total revenue received on selling the product. at therate
of 8 per unit. Find the break-even (ISC2019)
MC = (TC) = 4x - 11 point.
dx Ans, Solution : Let x be the number of units
produced.
R() =8x
 APPLICATION OF CALCULUS IN COMMERCE AND ECONOMICS

C(x) = 24,000 + 25 (ii) The total increase in cost when x increases from 100 to
x 8x
100 200
200 units = C(200) - C(100) = MC dx
Ar break-even point, R(*) = C()
1 1.e., C(200) - C(100) = [30 x 200 + (200) + 200] -
8x = 24, 000 + x 8x [30 x 100 + (100)+ 200]
4 Ans.
=30 × 100 +300 x 100=33,000
6x = 24,000 Question 17. The selling price of acormmodity is fixed at
X = 4,000 units. Ans. 760 and its cost function is C(x) = 35x+ 250.
break-even
Question I4, The cost function of a product is given by () Determine the profit function. (ii) Find the[ISC 2020]
points.
45x 900x + 36 where x is the number of Solution: () Here, C(%) = 35x + 250 and R) = 60x
3 Profit function = R() C(%) = 60 - (35x + 250)
nits produced. How many units shall be prodUced to = 25x - 250 Ans.
Tinimize the marginal cost? [ISC 2019] (ii) For break-evenpoint, R(X) = Cx)» 60x=35x + 250
25x = 250 > X= 10 units. Ans.
Solution : C(x) = 45x- 900x + 36 Question 18. The revenue function is given by
3
dc
R(x) = 100x - x<- x, Find :
MC = = x - 90x 900 () The demand function.
dx
(i) Marginal revenue function. [ISC 2020]
(MC) = 2x - 90. For maximum or minimum Solution: (i) Since, R(*) = 100x -x-=px
.:. Demand function p = 100 - x -x* Ans.
dR
(MC) = 0 ’ x= 45 (ii) Marginal Revenue = 100 - 2x-32 Ans.
dx dx
Question 19. The total cost function of a firm is given by
2(MC) = 2 > 0 Minima at x = 45
C(x) = -x-5x + 30x - 15 where the selling price per
Ans.
Number of units 45 units.
unit is given as 6. Find for what value of xwill the profit be
Uestion 15. The marginal cost function of x units of maximum? (ISC 2020]
product is given by MC = 3x - 10x + 3. The cost of
Solution : Here,
WoOucing one unit is 7. Find the total cost function and
2verage cost function. [ISC 2019]
C(x) = -x-5x+ 30x - 15 and R(x) = 6x
Solution: MC= 3x- 10x +3
dx
=3x- 10x + 3 ’dC - (3x-10x +3
dc
Profit r (x) = R(x) C(x) = 6x - - 5x + 30x - 15
dx
C) =x- 5x +3x +C1 + Sx2
x=1, C) =7 C=8 () 24x -15
Ans. 3
C) =**- 5x+3x +8 '() =-x+ 10x- 24, for Max. and Min, ' )= o
8
hverage cost function = C(x)_ 2- 5x+3 + X Ans.
I ) =- 2x+ 10 at x= 6; t'() =- ve <0 .. Max.
Therefore, x = 6 is the number of units for profit to be
Question cost of the production of the maximum.
16. The marginal
Costs are Ans.
tormmodity
2200.
is 30 + 2x. If it is knOwn that fixed
then find (i) The total cost.
Question 20. The cost function of a firm is given by
fu) The cost of !:increasing 200 units. Cx)
output from 100 to[ISC 2020]
1500 +25x + Then the marginal cost of the
10
firm MC(«) will be:
dc = 30 + 2x
Solution : (i) Given, M.C. = 30 + 2x ’
dx (a) 1500 + (b)
-1500
X2 10
Jde = 30 +2x dx C(x) - 30x + C
(c) 25 X
=C1 (d) 25 +
X=0, C(O) = 200 i.e., 200 5 5 [ISC 2022]
CK)-30x +x+ 200
 R26 VATSAL ISC MATHEMATICS HANDBOOK Class XII

Solution : (i) (b) Given, p= 200 -5x

Solution: (d) Given, C(x) = 1500 +25x +
10 R(X) =px=(200 - 5x)x = 200x - 512
dC
[R()], 20= (200- 100) x 20 =2000
MC = = 25 + Ans. dR Ans.
5
dx (ii) (c) MR(X) = = 200 -10x
dx Ans.
Question 21. The tevenue function of a monopolist is given
by 120 300 X. Then, the average revenue (iii) (a) For revenue to be increasing, dR >0
dx
functien AS) at 10 wili be: 200- 10x >0 ’ 20 >x, i.e., x < 20
Ans,
(b 1500 (c) l210 (d) 12310
(iv) (d) Slope of the marginal revenue = d(MR) =-10
[ISC 2022) dx
Sotution : (a) Here, Rx) = 120x +300 -x Ans.
Question 25. If the demand function is given by p = 1500
= R(x)
300
AR(*) = 120x + - 1 - 2x - x,then find the marginal revenue, when x = 10.
X
(a) 1160 (b) 1600 (c) 1100 (d) 1200
[AR(x)],=10 = 1200 + 30 - 1= 1229 Ans.
(ISC 2023]
Question 22. Acompany sells its product at the rate of 10
per unit. The variable costs are estimated to be 25% of the Solution: (a) Revenue function R(«) =p()
= 1500x- 2
totai revenue received. if the fixed costs for the product are
dR
¿4500, then the cost function will be : MR = = 1500 -4x- 3x
25 15
dx
(a) - 4500x (b) - 4500 dR
X
= 1500 40300 = 1160 Ans.
dx
5x 25x /(x=10)
(c) - 4500 (d) 4500 [ISC 2022! Question 26. The cost function C(x) =3x 6x +5. Findthe
2
average cost, when x = 2. [ISC 2023]
Solution : (c) Here, R(*) = 10x
25 5x
F«) = 4500
Solution : We know, AC =G(*) = 3x -6 +
V(x) = x 10x = and
100 2
(AC),=2 =6-6+=2.5 Ans.
5x
C(x) = V(x) + F(x) = + 4500 Ans. 2
2 Question 27. The fixed cost of a product is 30,000 and
Question 23. Let the total cost function be CX) = 5x + 350 its variable cost per unit is R800. If the demand function is
Px) = 4500 - 100x, find the break-even values.
ard the totai revenue function be RX) = 50x - x for a [ISC 2023]
company. Then, the break-even points willbe: SoBution: Total cost T(%) = 30,000+ 800x
(a) -35 and 10 (b) 35 and 10 Revenue function R() = Px) xx= 4500x - 100x
(c) 35 and --10 (d)-35 and -10 [ISC 20221 For break-even point T(x) =R)
30,000+ 800x = 4500x - 100x
Solution : (b) For break-even point C(*) = R() x-37x+ 300 = 0 (x- 25)(*- 12) =0
Le., 5x + 350= 50x -
X= 12, 25
x 45x +350 =0 ’ X= 10, 35 Ans. i.e., Break-even values are 12 and 25.
Ans.

Questian 24. The demand function of a firm producing Question 28. The total cost function for x units is given y
x units is g0ven by p-200- 5x. [ISC 2022] C(x) = V6x + 5+ 2500. Show that the marginal o
() The revenue furnctiorn at x - 20 will be: (ISC2023/
decreases as output x increases.
PREVOLS
VEARS (a) 4000 (b)2000 (c) 100 (d)-100
Solution :Given, C(x) = V6x + 5 + 2500
(i) The marginal revenuc tMR) will be:
(a) 200 - 10,2 (b) 200 dC 3 d -9 <0
MC = (MC) = (6x + 5)3/2
(c) 200 - 10 (d) -y? J6x +5 dx
Hence Proved.
’ MC decreases as x increases.
(ii1) The value of x, for wtiich revenue increases, wil! be: given by
ISE (a) x< 20 (b)x- 20 (c) x 20 (d)x200 Question 29. The average revenue function is
marginal
(iv) The slope of the inarginai revenue will be: AR 25 Find the total revenue function and
(a) -45 (b) 45 (c) 10 (d) --10 4 [ISC2023J
revenue function.
 APPLICATIONOF CALCULUS IN COMMERCE AND ECONOMICS BZ
Solution : Given, AR = R(x) = 25 45x = 30x + 240 i.e., x = 16
4 For x> 16 manufacturer will earn profit. Ans.

R(x) = 25x - Question 33. The Average Cost function as30C1ated With
ie 4 producing and market1ng x units of an item is gven by
dR AC = x + 5+ 36
MR = = 25 - (ISC 2024|
Also, dx 2 Ans. X

Question 30. A company selis hand towels at 100 per () Find the Total Cost function.
Tie ixed cost for the company to manufacture hand () Find the range of values of x for which Average Cost is
nugls S 35,000 and variable cost is estimated to be 30% increasing.
dtal revenue. What will be the total cost function for
manufacturing hand towels? 36
[ISC 2024] Solution : () Given AC = x+5+
a 35000 -3x (b) 35000 +30x
c 35000 - 100x (d) 35000 + 10xX C(*)
Also, AC = C(x) = x+ 5x +36 Ans.
Solution : (b) TC = 35000 + 30% x 100x = 35000 + 30x
Ans. d
(i) For AC to be increasing (AC) > 0
Question 31. If the total cost function is given by
C=y-2x-, find the Marginal Average Cost 36
2 ie, 1- >0 x-36 >0
iunction (MAC). [ISC2024]
x>6 xcannot be negative] AC is increasing. Ans.

Solution : We have, C(x) = x+ 2x

Question 34. Amonopolist's demand function is x = 60
AC = -1+2x²--x
2
At what level of output will marginal revenue be zero?
X [ISC 202]
7
Ans.
MAC = dx (AC) = 4x - 2 Solution:Given, x = 60 - ! p=3(60-x)
3

Uestion 32. The manufacturer of a pen 30x fixes its selling 3(60x -x)
function is C(x) = + 240. The Also, R(«) = px=3x (60-x) =
PIE et ? 45, and the cost selis more than l6 and MR = dR = 3(60 - 2x).
23Yacturer will begin to earn profit if he [ISC 2024]
fens. Wry? Give one reason. X=30 Ans.
= 30x + 240 If MR =0, then 3 (60 2%) = 0
Solution : Here, R() = 45x and R(r)C(x)
Por breakeven point, = C(*)