Mathematical Economics

Q 3: Answer the following questions: i) The rate of net investment is / = 40t's, and capital stock at t = 0 is 75. Find the capital function K. il) The rate of net investment is / = 60t1/3, and capital stock at t = 0 is 85. Find the capital function K. iii) Marginal cost is given by MC = = 25 + 30Q - 90 . Fixed cost is 55. Find the total cost, average cost and variable cost functions. iv) Marginal cost is given by MC = / = 32 + 180 - 1202. Fixed cost is 43. Find the total cost, average cost and variable cost functions. v) Marginal revenue is given by MR = 19 STR = 60 -20 - 202. Find the total revenue function. vi) With C = /(1) the marginal propensity to consume is given by MPC = " = 0.8. and consumption is 40 when income is zero. Find the consumption function. vil) With C = /(Y) the marginal propensity to consume is given by MPC = = and consumption is 45 when income is zero. Find the consumption function. vill) The marginal propensity to save is given by MPS = = = 0.5 - 0.2Y-1/2. There is dissaving of 3.5 when income is 25, that is $ = -3.5 when Y = 25, Find the savings function. ix) Marginal cost is given by MC = = 12050, Fixed cost is 36. Find the total function. *) Marginal cost is given by MC = = 16040. Fixed cost is 100. Find the total cost function