Homework 1 Solutions - Econ303 Homework 1 answer 1 1 4...

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Econ303Homework 1 answer11.4 pointsFind the derivatives of the following function(a)f(x) =x3.
(b)f(x) = 25.f0(x) = 0(c)f(x) = 2xex2+4.
(d)f(x) = (3x+ 4)(5x2+ 10x+ 6).f0(x) = 3(5x2+ 10x+ 6) + (3x+ 4)(10x+ 10) = 45x2+ 100x+ 56
2.3 pointsThe following function represents the relationship between the age of a workerand his wageWage= 10 + 25Age-0.25Age2Impact of Age on Wage is can be approximated by derivatives, which is given by thefollows.dWagedAge= 25-0.5Age(a) WhenAge= 25, the impact is 25-0.5·25 = 12.5. At age 25, a worker’s wagewill increase by 12.5 next year.(b) WhenAge= 50, the impact is 25-0.5·50 = 0. At age 50, a worker’s wage willstay the same next year.(c) WhenAge= 65, the impact is 25-0.5·65 =-7.5. At age 65, a worker’s wagewill fall by 7.5 next year.3.3 pointsPage 65, Chapter 2 question 3.Product approach:V alue added of Firm A= $3·50,000 = $150,000V alue added of Firm B= $2·50,000-$3·20,000 = $40,000GDP is therefore equal to $150,000 + $40,000= $190,000.Expenditure approach:Consumers buy 50,000 loaves of domestically produced bread at$2/loaf and 15,000

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