ct2_Memo.pdf - EECM3714: INTRODUCTORY MATHEMATICAL...

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EECM3714: INTRODUCTORY MATHEMATICAL ECONOMICSCLASS TEST 2 MEMO: MARKS = 25; TIME = 50 MINUTES1)KrustyCo produces and sells needles. Its production function is??š‘³?āˆ’ ?.??š‘³?a.Write down the average product of labour (APL) function for KrustyCo. [1].
b.Write down the marginal product of labour (MPL) function for KrustyCo. [1]
c.Write down the first-order condition for the maximisation of APL for KrustyCo. [1]
d.What level(s) ofš‘³satisfies (satisfy) this first-order condition for the maximisation of APL? [2]
e.Write down the value of the second derivative of the APL of KrustyCo at the APL maximising level(s) ofš‘³. [2]
f.Find the value(s) of APL at the APL maximising level(s) ofš‘³. [1].
g.Find the value(s) of MPL at the APL maximising level(s) ofš‘³. [1]
12)Itchy & Scratchy International produces and sells pins. Its inverse demand function is? = ?? āˆ’ ??, while its costfunction is? =?

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Term
Fall
Professor
JV Heerden
Tags
Supply And Demand, Inverse demand function, APL

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