test2.pdf - UNIVERSITY OF THE FREE STATE: BLOEMFONTEIN...

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UNIVERSITY OF THE FREE STATE: BLOEMFONTEIN CAMPUS
EECM3714
INTRODUCTORY MATHEMATICAL ECONOMICS
DEPARTMENT OF ECONOMICS
TEST 2:
ASSESSORS:
MODERATOR:
MARKS : 50; TIME : 120 MINUTES
This test paper consists of 3 questions on 2 pages. A formulae sheet is attached to the back of this paper. This
test may count 20% of your module mark. The Afrikaans paper is on the reverse.
INSTRUCTIONS
1) 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 nearest FOUR decimals (except when this yields
unsatisfactory results).
a) Use fractions (e.g.
2
3
) 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]
1.1 Wayne Industries produces and sells anvils. Its short-run cost function is ? = ??? + ??? + ??
?
1.1a Write down the Wayne’s average cost (AC) function, and then find the level(s) of 𝑞 that satisfies the
first-order and second-
.