Tutor week 30 July to 3 August 2018.docx - ECONOMICS 2B 2018 TUTOR WEEKS 30 July to 3 August ACTIVITY 1 Assume a demand function Q = 5000 10P 40A PA

Tutor week 30 July to 3 August 2018.docx - ECONOMICS 2B...

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ECONOMICS 2B 2018 TUTOR WEEKS: 30 July to 3 August ACTIVITY 1 : Assume a demand function: Q = 5000 – 10P + 40A + PA – 0.8A 2 – 0.5P 2 (where Q= quantity ; P= price and A= advertising expenditures in hundreds) Derive/calculate the following: Task Answer 1. The partial derivative of price 2. The partial derivative of advertising 3. The optimal value of P 4. The optimal value of A 5. The optimal value of Q ACTIVITY 2 : An athlete carefully watches her intake of calcium, proteins and calories. Her breakfast diet consists mainly of milk and cereal, whose prices and nutrient contents appear in the following table: Milk (10 ml) Cereal(10 gram) Calcium 2 2 Protein 2 6 Calories 6 2 Price 0.10 0.15 She seeks a diet that supplies at least 50 units of calcium, 90 units of protein, and 66 calories at minimum cost. Question Answer State the primal problem and the constraint equations 1
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Illustrate the feasible region with the aid of a diagram. ( Milk on the vertical-axis and cereal on the horizontal-axis) Show the corner point solutions. Final solution. ACTIVITY 3 : One of the product lines of Paveco is paving. The analysts had to determine the optimal monthly combination of two paving technologies namely asphalt and concrete paving aswell as the contribution per one unit of the constraint to the profit of Paveco. In this regard the firm is mainly confronted by capacity constraints such as a road grader, roller and power trowel time. The maximum number of hours of road grader time available per month is 640; of roller time, 1500 and of trowel time, 150. It takes two hours of road grader time and five
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