special Exam.pdf - UNIVERSITY OF THE FREE STATE:...

This preview shows page 1 - 2 out of 3 pages.

The preview shows page 1 - 2 out of 3 pages.
1UNIVERSITY OF THE FREE STATE: BLOEMFONTEIN CAMPUSEECM3714INTRODUCTORY MATHEMATICAL ECONOMICSDEPARTMENT OF ECONOMICSASSESSORS:MODERATOR:MARKS: 100;TIME: 240 MINUTESThis exam paper consists of 3 questions on 3 pages. A formulae sheet is attached to the back of this paper.This exam counts 40% of your final 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 book.3)Show your work.4)Where necessary, round final answers to the nearest four decimals (except when this yieldsunsatisfactory results).a.Use fractions (e.g.23) and radicals (e.g.√2) for greater accuracy when performing calculations.b.Use scientific notation (e.g. 0.000067 = 6.7 × 10−5) if your answers are very small.5)PLEASE SUBMIT THIS QUESTION PAPER AFTER COMPLETION OF THIS EXAM.QUESTION 1 [42]1.1)Oscorp’sshort-run cost function is? = 3?2+ 7? + 121.1a) Find the level(s) of?that minimise Oscorp’s average cost (AC). Verify that this (these) value(s) ofsatisfies (satisfy) the first- and second-order conditions for the minimisation of AC. [4]1.1b) Show that AC is equal to marginal cost (MC) at the level(s) of?that minimises (minimise) AC. [21.2) Consider the production function? = 8 (3?0.5+13?0.5)4.1.2a) Does this production function exhibit increasing, decreasing or constant returns to scale? Show/explain..?]2[3]1.2b) Write down the expression for the isoquant if? = 128. [21.2c) Use implicit differentiation to find the marginal rate of technical substitution (MRTS), i.e. find𝑑?𝑑?. [2]1.2d) Find an expression for the capital elasticity of production,?]

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
JV Heerden

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture