To increase marginal utility, you must decrease

Problem 1.

Given,

a) Use the Leibniz’s way to find derivative of the function.

b) Find the value of the derivative at .

Word-process your solution below.

Problem 2

Assume that a demand equation is given by . Find the marginal Revue for the given production levels (values of ). (Hint: Use the demand equation to express as a function of , and replace in the revenue function)

a) 1000 units

b) 2500 units

c) 3000 units

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Problem 3

The revenue and cost functions for producing and selling quantity for a certain production facility are given below.

a) Determine the profit function .

b) Use Excel to graph the functions and for the interval . Copy and paste the graph below. (Hint: Use Scatter plot with smooth lines and markers.)

c) Compute the break-even quantities.

d) Determine the marginal revenue .

e) Determine the marginal cost

f) At what quantity is the profit maximized?

Word-process your solution below.

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