1UNIVERSITY OF THE FREE STATE: BLOEMFONTEIN CAMPUSEECM3714INTRODUCTORY MATHEMATICAL ECONOMICSDEPARTMENT OF ECONOMICSTEST 2:ASSESSORS:MODERATOR:MARKS: 50;TIME: 120 MINUTESThis test paper consists of 3 questions on 2 pages. A formulae sheet is attached to the back of this paper. Thistest may count 20% of your module mark. The Afrikaans paper is on the reverse.INSTRUCTIONS1)Answer all the questions. Number your answers clearly!2)Write legibly, using only black or blue ink. Do not write in the margins of your answer sheet.3)Show your work.4)Where necessary, round final answers to the nearestFOURdecimals (except when this yieldsunsatisfactory results).a)Use fractions (e.g.23) and radicals (e.g.√2) for greater accuracy.b)Use scientific notation (e.g.0.000067 = 6.7 × 10−5) for answers very close to zero.QUESTION 1 [14]1.1Wayne Industries produces and sells anvils. Its short-run cost function is? = ??? + ??? + ???1.1aWrite down the Wayne’s average cost (AC) function, and then find the level(s) of𝑞that satisfies thefirst-order and second-.