PRACTICE QUESTIONS

UNIT I

A. If Z = 3x2 – 6xy+2y2. Calculate the approximate change in Z, if x changes from 2 to 2.1

and y changes from 3 to 3.1.
B. If Z= x2 +xy+2y2 +8. Find the critical points and determine if at these points, the function
is at relative minimum, relative maximum, inflection point or saddle point.
C. If Z= 8x3 +3x2+y2 +2xy+1. Find the critical points and determine if at these points, the
function is at relative minimum, relative maximum, inflection point or saddle point.
D. If Z= 3x3 -5y2 -225x+70y+20. Find the critical points and determine if at these points, the
function is at relative minimum, relative maximum, inflection point or saddle point.
E. Using the method of lagrange multiplier, minimize the cost for a firm if
C=5x2 +2xy+3y2 +800 subject to x+y = 39.
F. Using the method of lagrange multiplier maximize utility if U= Q1 Q2 where P1=1, P2=4
& Budget (Y)= 120.
G. The demand function for 2 commodities X1 & X2 are p1 =1-x1 and p2 = 1-x2 respectively .
The joint cost of production is c=x1x2. Find the maximum profit.
H. Demand function for commodity S is given as,
Ds = y2+(200/Ps)-4Pt
Where Y is income, Ps is the price of commodity S and Pt is the price of other
commodity t. calculate
(i) Price elasticity of Demand
(ii) Income elasticity of Demand .
(iii) Cross Price elasticity of Demand.
Given Ps=4,Pt= 5, y =50.
UNIT II
A. Find the area bounded by the region Y= x2+5x+2 & x axis between x=0 and x=3.
B. Find the area bounded by the x axis and the curve Y= √x between x=1 and x =3 .
C. Find the area bounded by the x axis and the line Y= 4x+5 between x=0 and x=5.
D. The marginal cost function for a certain product is MC= (2Q+5)2. Find the total cost and
average cost for 5 units of output where total fixed cost is given as 200.
E. Find the consumer’s surplus given the demand function as P= 36-x2 and the equilibrium
quantity consumed is 5 units.
F. Calculate the present value of Rs. 10000 to be paid each year for 3 years when the
interest rate is 5 % compounded continuously (Given e-0.15 =0.8607 )
G. After producing 200 units, a company determined that it is following a learning curve of
the form f(x) = 500 x -0.5 where f(x) is a number of labour hours required to assemble the
x units. How many labour hours will be required to produce additional 100 units.
H. A firm’s learning curve after producing 625 units is f(x) = 2000 x -0.75which is the labour
hours required to produce x units. Find the number of labour hours required to produce
additional 1776 units.
I. The demand and supply function for a text book on micro economics is given by
P=500-12Q and P=50 + 3Q respectively. Find the consumer’s and producer’s surplus
assuming that the market for text book on micro economics is perfectly competitive.