Applied Mathematics II (ECO 244) Sample Mid Term 2

Name & ID: Total Marks: 25

Question 1

Find the derivatives of the following functions: (6 marks)

2 −1
(a) 𝑦 = 4𝑒 3𝑥 (b) 𝑦 = 0.5𝑥 (c) 𝑦 = ln⁡(2𝑥 2 + 𝑥)

(d) 𝑦 = log 𝑥 2 (𝑥 + 5)5 (e) 𝑦 = log 7 (𝑥 3 − 1)

Answers:
2 −1
(𝑎)⁡𝑦 ′ = 4𝑒 3𝑥 (3) = 12𝑒 3𝑥 (b) 𝑦 ′ = 0.5𝑥 (2𝑥)(ln 0.5) = 0.5𝑥 ln 0.5⁡
4𝑥+1
(c) 𝑦 ′ =
2𝑥 2 +𝑥

1 1
(d) 𝑦 = log 𝑥 2 + log(𝑥 + 5)5 = 2 log 𝑥 + 5 log(𝑥 + 5) ⁡⁡⁡⁡⁡⁡ ⟹ ⁡ ⁡⁡⁡𝑦 ′ = 2 (𝑥𝑙𝑛10) + 5((𝑥+5)𝑙𝑛10)

3𝑥 2
(e) 𝑦′ = (𝑥 3 −1)(𝑙𝑛7)

Question 2 ( 10 + 1 = 11 marks)

A business firm produces two products and has a capacity of 50 units (i.e. they can produce any amount
of the products which is less than or equal to 50 units). Given, the profit function of the business,
𝜋 = 100𝑥 − 𝑥 2 + 200𝑦 − 4𝑦 2 (𝑥⁡and 𝑦 represents the amount of two the products produced).

a) Use the Kuhn Tucker conditions to find the amount of the products that should be produced to
maximize profit.

b) Provide the interpretation of the Lagrangian Multiplier, 𝜆 in this situation.

**Solution of this problem is on the website. And we solved it in class, so it’s in your notes as well**
 Applied Mathematics II (ECO 244) Sample Mid Term 2
Name & ID: Total Marks: 25

Question 4 (1 + 2 + 1 = 4 marks)

The value of a machine that a business firm uses was $ 1000 at the beginning of 2015 and it decreased
to $ 920 at the beginning of 2017.

a) What kind of a function may be used to analyze the given situation? Discuss the reasons for your
choice.

b) Derive the function that can be used analyze (model) the given situation.

c) Use the function to forecast (predict) the value of the machine in the beginning of 2021.

Answers: a) An exponential function may be appropriate since it is likely that the value of the machine
is decreasing by a fixed percentage (rate) every year.

b) We know, y = Abt . Let, t = 0 in 2015 and t = 2 in 2017.

Therefore, 920 = 1000𝑏 2 then, 𝑏 2 = 0.920

Taking the square root of both sides, √𝑏 2 = √0.92 ⟹ 𝑏 = 0.959

Therefore, 𝑦 = 1000(0.959𝑡 ) can be used to model or analyze the given situation

c) y = 1000 (0.9596 )⁡ then, y = $ 778.7

The value of the machine is expected to be $ 778.7 in 2021.

Question 5: (4 marks)

The demand function of a business is: 𝑃 = 8.25𝑒 −0.02𝑄 . What amount of output (Q) should be produced
to maximize the total revenue?

Answer:

**Some questions may be based on class discussions (notes). Please review them as well**