405hw1

# 405hw1 - equal to marginal cost(MC(3(a For the linear...

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Problem Set #1 Sonoma State University Dr. Cuellar Economics 405- Seminar in Microeconomic Theory (1) Find dy/dx of the following functions: (a) y = (9x 2 - 2)(3x +1) (b) y = (3x + 11)(6x 2 - 5x) (c) y = x 2 (4x + 6) (d) y = (ax-b)(cx 2 ) (e) y = (x 2 + 3)x -1 (f) y = (x 2 +3)/ x (g) y = 4x/(x+5) (h) y = (3x 2 -13) 3 (i) y = (8x 3 - 5) 9 (j) f(x,y) = x 2 + 5xy -y 3 (k) f(x,y) = (2x -3y)/(x + y) (2) Using the total revenue function TR=P(Q)Q, show that, (a) a profit maximizing firm operating in a non-competitive market will set price according to the formula, P= MC 1 % 1 g (b) a profit maximizing firm operating in a perfectly competitive market will set price
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Unformatted text preview: equal to marginal cost (MC). (3) (a) For the linear demand curve Q D = α-β P, calculate the own price elasticity. (b) Show that the own price elasticity of demand varies from zero to infinity. (c) Show the relationship between the linear demand function and total revenue. (4) (a) For the non-linear demand function Q D = α P-β , calculate the own price elasticity. (b) Show that the own price elasticity of demand is constant. (c) Show the relationship between the demand function and total revenue....
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## This note was uploaded on 03/08/2011 for the course ECON 101 taught by Professor Cuellar during the Spring '11 term at Sonoma.

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