as3 - TR q qAR q Use the rules of di¤erentiation to find...

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ECON 331 Written Assignment 3 due in class Oct. 7 1. Use the di¤erence quotient method to show that when x 0 , the function f x x has a derivative which is equal to f x 1 2 x 2. The demand function for a particular commodity is given by the function q f p 9 p 2 where p is the price of the commodity. (a) The domain of this demand function is p : f p 0 . What is this domain in interval notation? What is the image of this demand function in interval notation? (b) AR q is the inverse function of the demand function and
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Unformatted text preview: TR q qAR q . Use the rules of di¤erentiation to find the derivatives dAR / dq and dMR / dq for this commodity. Your answers may be given in terms of q or in terms of p or in terms of both p and q . Are AR and MR strictly monotonic on their doman? Explain your answers. (c) Draw a sketch of the TR q function for this commodity which shows where TR and where the maximum of TR is (where MR 0). Explain the calculations on which your sketch is based....
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This note was uploaded on 09/18/2011 for the course ECON 331 taught by Professor Heaps during the Spring '06 term at Simon Fraser.

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