MFE-Recitation1Worksheet wsols - Math for Econ I-Worksheet...

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Math for Econ I-Worksheet 1 Selin Kalaycioglu New York University 1. In a California town, the monthly charge for waste collection is $8 for 32 gallons of waste and $12 . 32 for 68 gallons of waste. (a) Find a linear formula for the cost, C , of waste collection as a function of the number of gallons of waste, w . (b) What is the slope of the line found in part (a)? Give units and interpret your answer in terms of the cost of waste collection. (c) What is the vertical intercept of the line found in part (a)? Give units and interpret your answer in terms of the cost of waste collection. Solution:
2. Production costs for manufacturing running shoes consist of a fixed overhead of $650 , 000 plus variable costs of $20 per pair of shoes. Each pair of shoes sells for $70. (a) Find the total cost, C ( q ), the total revenue, R ( q ), and the total profit, π ( q ), as a function of the number of pairs of shoes produced, q . (b) Find the marginal cost, marginal revenue, and marginal profit. (c) How many pairs of shoes must be produced and sold for the company to make a profit? Solution:

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