CUET UG Applied Mathematics Booster Test 1 - Cost, Revenue and Rates
๐ Answers are locked once submitted โ results and explanations appear at the end.
QUESTION 1 OF 20
A company produces 'x' units and the variable cost is given by V(x) = xยฒ - 2x. What is the numerical variable cost when 10 units are produced?
QUESTION 2 OF 20
Match the cost models in List I with their expressions in List II, given variable cost \(V(x)=x^{2}-2x\) and a fixed cost of โน15000:
| List I | List II |
|---|---|
| 1. (A) Variable Cost \(V(x)\) | a. \(x^{2}-2x\) |
| 2. (B) Fixed Cost \(k\) | b. 15080 |
| 3. (C) Total Cost \(C(x)\) | c. 15000 |
| 4. (D) Total Cost for \(x=10,โ โC(10)\) | d. \(x^{2}-2x+15000\) |
QUESTION 3 OF 20
If the price per unit is given by \(p=5-x\), which of the following statements about the revenue formula are true?
1) The revenue function \(R(x)\)evaluates to \(5x-x^{2}\).
2) The revenue function \(R(x)\)evaluates to \(5-x^{2}\).
3) The marginal revenue \(MR\) evaluates to \(5-2x\).
4) \(R(x)\)is found using the formula \(p+x\).
QUESTION 4 OF 20
Identify the incorrect statement regarding the price and output relation when price \(p=30-2x\).
QUESTION 5 OF 20
For a manufacturing firm, the total cost model combines variable costs dependent on production and absolute fixed costs. If a firm's \(V(x)=x(x+30)\)and storage cost is โน1500, what is the correct construction of the cost function \(C(x)\)?
QUESTION 6 OF 20
Using the cost function example \(C(x)=x^{2}+30x+1500\), what is the Marginal Cost (MC) when 20 toys are produced?
QUESTION 7 OF 20
In revenue function formation, if an operator charges โน136 per passenger with a discount factor influencing price, the revenue \(R(x)\)will systematically be a product of the number of passengers \(x\) and:
QUESTION 8 OF 20
In a revenue function example, if \(p=30-2x\), what is the exact Marginal Revenue when 5 commodities are produced?
QUESTION 9 OF 20
The instantaneous rate concept dictates that if \(y=f(x)\)is a real function, the limit of change in \(y\) over a very small change in \(x\) represents:
QUESTION 10 OF 20
When utilizing the derivative as a rate of change, if the cost \(C\) changes with production \(x\), then \(\frac{dC}{dx}\)specifically measures the:
QUESTION 11 OF 20
For a spherical balloon undergoing surface area change, A = 4ฯrยฒ. What is the rate of change of the surface area with respect to r when r = 2 cm?
QUESTION 12 OF 20
For a sphere undergoing volume change, V = (4/3)ฯrยณ and S = 4ฯrยฒ. Utilizing chain differentiation, the rate of change of volume with respect to its surface area (dV/dS) simplifies to:
QUESTION 13 OF 20
QUESTION 14 OF 20
QUESTION 15 OF 20
A boy is walking towards a lamp post. Because the distance 'x' between the boy and the lamp post is decreasing over time, the rate of change dx/dt is assigned a value of:
QUESTION 16 OF 20
In shadow problems, if the shadow length y relates to distance x by y = x/4, and the boy walks towards the lamp at dx/dt = -0.5 m/sec, the rate at which the shadow length decreases is:
QUESTION 17 OF 20
A toy firm calculates its total cost as C(x) = xยฒ + 30x + 1500. The Marginal Cost (MC) equation representing the derivative is:
QUESTION 18 OF 20
The price per unit of a commodity is p = 30 - 2x. Finding the Marginal Revenue (MR) requires evaluating dR/dx. What is the MR expression?
QUESTION 19 OF 20
Exploring cost optimization concepts, if C(x) = 300x - 10xยฒ + (1/3)xยณ, finding the output 'x' at which Marginal Cost is minimum requires setting the second derivative of Cost equal to zero. What is this 'x'?
QUESTION 20 OF 20
In revenue change analysis, if a company charges โน6000 per unit minus โน75 for each unit in excess, R(x) = x(9750 - 75x). The largest order size for maximum revenue occurs when R'(x) = 0. What is 'x'?
Test Complete!
Answer Review
1 A company produces 'x' units and the variable cost is given by V(x) = xยฒ - 2x. What is the numerical variable cost when 10 units are produced?
Substitute \(x=10\) into the variable cost function. Calculate \({10}^{2}-2(10)\). The variable cost equals 80, making Option C correct.
The variable cost function is V(x) = xยฒ - 2x. Substituting x = 10, we get V(10) = 10ยฒ โ 2(10) = 100 โ 20 = 80. Therefore, Option C is correct. Options A (120), B (100), and D (20) result from incorrect substitution or calculation and do not satisfy the given function.
- Option A) 120 โ This value results from an incorrect calculation. Substituting x = 10 into the function does not produce 120.
- Option B) 100 โ This considers only the square term 10ยฒ and ignores the โ2x term, giving an incomplete evaluation.
- Option D) 20 โ This represents only the value of 2x when x = 10, not the complete variable cost function.
Used: Substitution
Application: Substitute the given production level directly into the cost function and simplify carefully to avoid arithmetic mistakes.
Final Logic: Since V(10) = 100 โ 20 = 80, the correct answer is Option C.
Mnemonic: "Substitute โ Square โ Subtract."
2 Match the cost models in List I with their expressions in List II, given variable cost \(V(x)=x^{2}-2x\) and a fixed cost of โน15000:
| List I | List II |
|---|---|
| 1. (A) Variable Cost \(V(x)\) | a. \(x^{2}-2x\) |
| 2. (B) Fixed Cost \(k\) | b. 15080 |
| 3. (C) Total Cost \(C(x)\) | c. 15000 |
| 4. (D) Total Cost for \(x=10,โ โC(10)\) | d. \(x^{2}-2x+15000\) |
Variable cost is \(x^{2}-2x\). Fixed cost remains โน15000. Total cost equals variable cost plus fixed cost. At \(x=10\), total cost is โน15080.
Variable cost is \(V(x)=x^{2}-2x\), so 1 โ a. The fixed cost is constant at โน15000, so 2 โ c. Therefore, the total cost function is \(C(x)=x^{2}-2x+15000\), giving 3 โ d. Evaluating at x=10, \(C(10)=80+15000=15080\), so 4 โ b. Hence, Option A is correct.
- Option B) 1-b, 2-a, 3-c, 4-dโ Incorrect because it mismatches every expression. Variable cost is not 15080, fixed cost is not \(x^{2}-2x\), and total cost is not merely โน15000.
- Option C) 1-a, 2-b, 3-c, 4-d โ Incorrect because 2-b treats the fixed cost as โน15080, which is actually the total cost at x=10. The remaining matches are also incorrect.
- Option D) 1-d, 2-c, 3-a, 4-b โ Incorrect because 1-d assigns the total cost function as the variable cost, while C-I assigns the variable cost expression as the total cost.
Used: Option Grouping
Application: First identify the known expressions for variable cost, fixed cost, total cost, and numerical total cost, then match each pair systematically.
Final Logic: Correct matching is 1-a, 2-c, 3-d, 4-b , which corresponds to Option A.
Mnemonic: "Total Cost = Variable Cost + Fixed Cost."
3 If the price per unit is given by \(p=5-x\), which of the following statements about the revenue formula are true?
1) The revenue function \(R(x)\)evaluates to \(5x-x^{2}\).
2) The revenue function \(R(x)\)evaluates to \(5-x^{2}\).
3) The marginal revenue \(MR\) evaluates to \(5-2x\).
4) \(R(x)\)is found using the formula \(p+x\).
Revenue equals price ร quantity. Thus, \(R(x)=x(5-x)=5x-x^{2}\). Differentiating gives \(MR=5-2x\). Therefore, only statements 1 and 3 are correct.
Revenue is calculated as Price ร Quantity. Since \(p=5-x\), the revenue function is \(R(x)=x(5-x)=5x-x^{2}\), making Statement A correct. Differentiating gives \(MR=\frac{dR}{dx}=5-2x\), so Statement 3 is also correct. Statement 2 omits the multiplication by quantity, while Statement 4 incorrectly uses addition instead of multiplication. Hence, Option C is correct.
- Option A) 1, 2, 4 โ Incorrect because Statements 2 and 4 are false. Revenue is not \(5-x^{2}\), and it is never calculated as price + quantity.
- Option B) 1, 2 โ Incorrect because Statement 2 is false, while Statement 3 is true since marginal revenue is the derivative of the revenue function.
- Option D) 1, 2, 3, 4 โ Incorrect because it includes Statements 2 and 4, both of which contradict the correct revenue formula and its definition.
Used: Substitution
Application: Substitute the given price function into the revenue formula \(R=x\times p\), then differentiate to identify the correct statements.
Final Logic: Since \(R(x)=5x-x^{2}\)and \(MR=5-2x\), only A and C are correct.
Mnemonic: "Revenue = Price ร Quantity; MR = Derivative of Revenue."
4 Identify the incorrect statement regarding the price and output relation when price \(p=30-2x\).
Revenue equals price multiplied by quantity. Differentiate revenue to obtain marginal revenue. Since \(MR=30-4x\), it depends on output and is not constant.
Given \(p=30-2x\), the revenue function is \(R(x)=x(30-2x)=30x-2x^{2}\), so Option A is correct. Marginal Revenue is obtained by differentiation, giving \(MR=30-4x\), making Options B and C correct. Option D is incorrect because marginal revenue varies with the value of \(x\).
- Option A) The Revenue function is \(R(x)=30x-2x^{2}\). โ Correct because revenue is calculated as Price ร Quantity, giving the stated expression.
- Option B) The Marginal Revenue is evaluated by finding \(dR/dx\). โ Correct because marginal revenue is defined as the derivative of the revenue function with respect to output.
- Option C) The Marginal Revenue evaluates to \(MR=30-4x\). โ Correct since differentiating \(30x-2x^{2}\)gives \(30-4x\).
Used: Elimination
Application: Verify each statement using the revenue formula and differentiation. Eliminate statements that match the mathematical definitions and identify the one contradicting the concept.
Final Logic: Since \(MR=30-4x\) changes with output, it cannot be constant. Therefore, Option D is the incorrect statement.
Mnemonic: "MR = dR/dx โ If \(x\) is present, MR changes."
5 For a manufacturing firm, the total cost model combines variable costs dependent on production and absolute fixed costs. If a firm's \(V(x)=x(x+30)\)and storage cost is โน1500, what is the correct construction of the cost function \(C(x)\)?
Total cost equals variable cost plus fixed cost. Expand \(V(x)=x(x+30)\)to obtain \(x^{2}+30x\). Add โน1500 fixed cost, giving \(C(x)=x^{2}+30x+1500\).
The variable cost is \(V(x)=x(x+30)=x^{2}+30x\). Total cost is obtained by adding the fixed (storage) cost of โน1500 to the variable cost. Hence, \(C(x)=x^{2}+30x+1500\). Option B is correct. Option A omits the fixed cost, Option C is not derived from the given function, and Option D incorrectly multiplies the fixed cost by \(x\).
- Option A) \(x^{2}+30x\)โ Incorrect because it represents only the variable cost. The fixed storage cost of โน1500 must also be included to obtain the total cost.
- Option C) \(x+1530\)โ Incorrect because it is a linear expression and does not result from expanding the given quadratic variable cost function.
- Option D) \(x^{2}+1500x+30\)โ Incorrect because the fixed cost is a constant amount, not a coefficient of \(x\). The terms are incorrectly arranged.
Used: Substitution
Application: First expand the given variable cost function, then apply the formula Total Cost = Variable Cost + Fixed Cost.
Final Logic: Expanding \(x(x+30)\)gives \(x^{2}+30x\); adding โน1500 results in \(x^{2}+30x+1500\). Therefore, Option B is correct.
Mnemonic: "TC = VC + FC" (Total Cost = Variable Cost + Fixed Cost).
6 Using the cost function example \(C(x)=x^{2}+30x+1500\), what is the Marginal Cost (MC) when 20 toys are produced?
Marginal Cost is the derivative of the total cost function. Differentiate \(C(x)=x^{2}+30x+1500\). Substitute \(x=20\) to obtain \(MC=70\).
Marginal Cost (MC) is the derivative of the total cost function with respect to output. Differentiating \(C(x)=x^{2}+30x+1500\) gives \(MC=\frac{dC}{dx}=2x+30\). Substituting \(x=20\), \(MC=2(20)+30=70\). Therefore, Option A is correct. Options B, C, and D do not represent the derivative evaluated at \(x=20\).
- Option B) 50 โ Incorrect because substituting \(x=20\) into \(2x+30\) gives 70, not 50. This value results from an incorrect calculation.
- Option C) 1500 โ Incorrect because 1500 is the fixed cost in the total cost function. Fixed cost disappears after differentiation and does not affect marginal cost.
- Option D) 2500 โ Incorrect because this is unrelated to the marginal cost calculation. It is neither the derivative nor the total cost at \(x=20\).
Used: Substitution
Application: Differentiate the cost function first to obtain the marginal cost expression, then substitute the given production level into the derivative.
Final Logic: Since \(MC=2x+30\), substituting \(x=20\) gives \(70\). Hence, Option A is correct.
Mnemonic: "Differentiate first, substitute later."
7 In revenue function formation, if an operator charges โน136 per passenger with a discount factor influencing price, the revenue \(R(x)\)will systematically be a product of the number of passengers \(x\) and:
Revenue is calculated by multiplying quantity by price per unit. Here, quantity is the number of passengers \(x\). Therefore, revenue equals \(x\times p\), where \(p\) is the adjusted price.
Revenue is defined as the product of quantity sold and price per unit, i.e., \(R(x)=x\times p\). If the ticket price changes because of a discount factor, the adjusted price \(p\) is used in the formula. Therefore, Option C is correct. Fixed cost, variable cost, and marginal cost are cost concepts and are not used directly to calculate revenue.
- Option A) The total fixed costs โ Incorrect because fixed costs are expenses that remain constant regardless of passenger numbers. They do not determine revenue.
- Option B) The variable cost \(V(x)\)โ Incorrect because variable cost represents production or operating expenses. Revenue depends on selling price and quantity, not production cost.
- Option D) The marginal cost \(MC\)โ Incorrect because marginal cost measures the additional cost of producing one extra unit. It is unrelated to the formula for total revenue.
Used: Conceptual/Tonal Matching
Application: Recognize the standard economic definition of revenue and match it with the option describing price per unit multiplied by quantity.
Final Logic: Revenue is always Quantity ร Price per Unit. Therefore, the correct answer is Option C.
Mnemonic: "R = P ร Q" (Revenue = Price ร Quantity).
8 In a revenue function example, if \(p=30-2x\), what is the exact Marginal Revenue when 5 commodities are produced?
Revenue equals price multiplied by quantity. Differentiate the revenue function to obtain Marginal Revenue. Substitute \(x=5\); the result is 10, so Option C is correct.
Given the price function \(p=30-2x\), the revenue function is \(R(x)=x(30-2x)=30x-2x^{2}\). Differentiating gives the Marginal Revenue, \(MR=\frac{dR}{dx}=30-4x\). Substituting \(x=5\), \(MR=30-20=10\). Therefore, Option C is correct. Options A, B, and D do not satisfy the derivative calculation.
- Option A) 30 โ Incorrect because it is the constant term of the Marginal Revenue expression. The value of \(x=5\) must also be substituted.
- Option B) 20 โ Incorrect because substituting \(x=5\) into \(30-4x\) gives 10, not 20. It results from an incorrect evaluation.
- Option D) 5 โ Incorrect because 5 is the number of commodities produced, not the Marginal Revenue. The derivative must be evaluated at \(x=5\).
Used: Substitution
Application: First derive the Marginal Revenue expression by differentiating the revenue function, then substitute the given production level.
Final Logic: Since \(MR=30-4x\), substituting \(x=5\) gives \(10\). Hence, Option C is correct.
Mnemonic: "Revenue โ Differentiate โ Substitute."
9 The instantaneous rate concept dictates that if \(y=f(x)\)is a real function, the limit of change in \(y\) over a very small change in \(x\) represents:
Instantaneous rate of change is defined using a limit. It measures how rapidly a function changes at a point. This limit is called the derivative, \(dy/dx\).
The derivative is defined as the limit of the ratio of the change in a function to the change in its variable as the change approaches zero. It represents the instantaneous rate of change or the slope of the tangent at a point. Therefore, Option C is correct. Options A, B, and D do not describe the mathematical definition of a derivative.
- Option A) The total area under the curve โ Incorrect because the area under a curve is determined using integration, not differentiation. It does not represent an instantaneous rate of change.
- Option B) The average moving slope โ Incorrect because an average slope is calculated over an interval using a secant line. The question asks for the instantaneous rate at a single point.
- Option D) A fixed numerical constant โ Incorrect because a derivative generally varies with the value of \(x\). It is constant only for specific linear functions.
Used: Conceptual/Tonal Matching
Application: Identify the key phrase "instantaneous rate of change", which is the standard definition of the derivative in differential calculus.
Final Logic: Instantaneous rate of change is represented by the derivative \(dy/dx\). Therefore, Option C is correct.
Mnemonic: "Instantaneous = Derivative = Tangent Slope."
10 When utilizing the derivative as a rate of change, if the cost \(C\) changes with production \(x\), then \(\frac{dC}{dx}\)specifically measures the:
The derivative measures the instantaneous rate of change. Differentiating the cost function gives the additional cost of producing one more unit. This quantity is called Marginal Cost (MC).
The derivative \(\frac{dC}{dx}\)represents the instantaneous rate of change of the cost function with respect to production. In economics, this derivative is known as the Marginal Cost (MC), which measures the additional cost incurred in producing one extra unit of output. Therefore, Option B is correct. Options A, C, and D do not describe the derivative of the cost function.
- Option A) Average cost โ Incorrect because average cost is calculated as Total Cost รท Number of Units (\(C(x)/x\)). It is not obtained by differentiating the cost function.
- Option C) Total variable cost โ Incorrect because total variable cost is a component of the total cost function. Its derivative gives marginal cost, not the variable cost itself.
- Option D) Fixed property tax โ Incorrect because a fixed property tax does not vary with production. Its derivative with respect to output is zero and does not represent marginal cost.
Used: Contextual/Tonal Matching
Application: Recognize the economic meaning of the derivative of a cost function. In economics, \(\frac{dC}{dx}\)is universally defined as Marginal Cost.
Final Logic: Since \(\frac{dC}{dx}\)measures the additional cost of producing one more unit, the correct answer is Option B.
Mnemonic: "Derivative of Cost = Marginal Cost (MC)."
11 For a spherical balloon undergoing surface area change, A = 4ฯrยฒ. What is the rate of change of the surface area with respect to r when r = 2 cm?
The derivative of surface area is obtained using differentiation. Since \(A=4\pi r^{2}\), \(dA/dr=8\pi r\). Substituting \(r=2\) gives \(16\pi\). Differentiate the formula. Substitute the given radius. Evaluate the derivative.
Surface area of a sphere is \(A=4\pi r^{2}\). Differentiating with respect to \(r\) gives \(dA/dr=8\pi r\). At \(r=2\), \(dA/dr=16\pi\). Therefore, Option B is correct. Options A, C, and D represent incorrect derivative values or incomplete substitution.
- Option A โ 8ฯ cmยฒ/cm is the derivative only when \(r=1\), not at \(r=2\).
- Option C โ 4ฯ cmยฒ/cm results from incorrect differentiation.
- Option D โ 2ฯ cmยฒ/cm is unrelated to the derivative of \(4\pi r^{2}\).
Used: Substitution
Application: Differentiate first, then substitute the given value of the radius into the derivative.
Final Logic: \(8\pi \times 2=16\pi\), so Option B is correct.
"Sphere Area โ 8ฯr after differentiation."
12 For a sphere undergoing volume change, V = (4/3)ฯrยณ and S = 4ฯrยฒ. Utilizing chain differentiation, the rate of change of volume with respect to its surface area (dV/dS) simplifies to:
Use the chain rule. Compute \(dV/dr=4\pi r^{2}\)and \(dS/dr=8\pi r\). Their ratio gives \(dV/dS=r/2\). Differentiate both expressions. Apply chain rule. Simplify the ratio.
Using the chain rule, \(\frac{dV}{dS}=\frac{dV/dr}{dS/dr}=\frac{4\pi r^{2}}{8\pi r}=\frac{r}{2}.\) Thus Option C is correct. Options A, B, and D ignore the denominator obtained while differentiating the surface area.
- Option A โ r ignores division by \(8\pi r\).
- Option B โ 2r results from incorrect simplification.
- Option D โ 4r has no basis in chain differentiation.
Used: Elimination
Application: Differentiate both quantities separately before forming their ratio.
Final Logic: \(\frac{4\pi r^{2}}{8\pi r}=\frac{r}{2}\), making Option C correct.
"Volume over Surface โ Half the radius."
13
Since the cylinder radius is constant, only height changes with time. Differentiating \(V=\pi r^{2}h\) gives \(dV/dt=\pi r^{2}(dh/dt)\). Radius is constant. Differentiate with respect to time. Apply related rates.
The cylinder has a fixed radius, so \(dr/dt=0\). Differentiating \(V=\pi r^{2}h\) with respect to time gives \(\frac{dV}{dt}=\pi r^{2}\frac{dh}{dt}.\) Hence, Option B is correct. Options A, C, and D omit required differentiation or include unnecessary terms.
- Option A โ ฯrยฒ lacks the time derivative.
- Option C โ 2ฯr(dr/dt)h applies when radius changes, which is not true.
- Option D โ dh/dt omits the multiplying factor \(\pi r^{2}\).
Used: Contextual/Tonal Matching
Application: Notice that the passage states the radius remains constant.
Final Logic: Constant radius implies \(dr/dt=0\), so only Option B remains.
"Rigid cylinder โ Only height changes."
14
Using \(dV/dt=\pi r^{2}(dh/dt)\), substitute \(r=0.5\) and \(dV/dt=0.25\pi\). Solving gives \(dh/dt=1\) m/min. Use the related-rate formula. Substitute values. Solve for height rate.
Given \(0.25\pi =\pi (0.5)^{2}\frac{dh}{dt}=\pi (0.25)\frac{dh}{dt}.\) Cancelling common factors gives \(\frac{dh}{dt}=1ย m/min.\) Thus Option B is correct. Options A, C, and D result from incorrect substitution or arithmetic.
- Option A โ 0.5 m/min comes from incorrect division.
- Option C โ 0.25 m/min ignores the radius squared.
- Option D โ 2 m/min overestimates the calculated rate.
Used: Substitution
Application: Insert the numerical values into the differentiated equation before solving.
Final Logic: Direct substitution gives \(dh/dt=1\), making Option B correct.
"Divide volume rate by ฯrยฒ."
15 A boy is walking towards a lamp post. Because the distance 'x' between the boy and the lamp post is decreasing over time, the rate of change dx/dt is assigned a value of:
When distance decreases with time, its derivative is negative. Therefore, approaching the lamp post means \(dx/dt\) has a negative value. Distance decreases. Rate becomes negative. Motion is toward the lamp.
The derivative \(dx/dt\) indicates how distance changes over time. Since the boy walks towards the lamp post, the distance continuously decreases. Therefore, the rate must be negative. Hence Option B is correct. Options A, C, and D do not represent decreasing distance correctly.
- Option A โ +0.5 m/sec indicates increasing distance.
- Option C โ 0 m/sec means no movement.
- Option D โ 1 m/sec is positive, representing motion away from the lamp.
Used: Contextual/Tonal Matching
Application: Interpret the phrase "walking towards" to determine the sign of the derivative.
Final Logic: Towards means decreasing distance, so \(dx/dt<0\). Therefore, Option B is correct.
"Towards โ Negative rate."
16 In shadow problems, if the shadow length y relates to distance x by y = x/4, and the boy walks towards the lamp at dx/dt = -0.5 m/sec, the rate at which the shadow length decreases is:
Differentiate \(y=\frac{x}{4}\)with respect to time. Since \(dy/dt=\frac{1}{4}(dx/dt)\)and \(dx/dt=-0.5\), the shadow decreases at \(1/8\) m/sec. Differentiate the relation. Substitute the given rate. Take the magnitude of decrease.
Given \(y=\frac{x}{4}\), \(\frac{dy}{dt}=\frac{1}{4}\frac{dx}{dt}=\frac{1}{4}(-0.5)=-\frac{1}{8}ย m/sec.\) The negative sign indicates decreasing length, so the rate of decrease is 1/8 m/sec. Hence Option A is correct. Options B, C, and D overestimate the rate.
- Option B โ 1/4 m/sec ignores multiplying by the given speed.
- Option C โ 1/2 m/sec equals the walking speed, not the shadow's rate.
- Option D โ 1 m/sec has no relation to the given equation.
Used: Substitution
Application: Differentiate first and substitute the given value of \(dx/dt\).
Final Logic: \(\frac{1}{4}\times 0.5=\frac{1}{8}\), so Option A is correct.
"Shadow = One-fourth of distance."
17 A toy firm calculates its total cost as C(x) = xยฒ + 30x + 1500. The Marginal Cost (MC) equation representing the derivative is:
Marginal Cost is the derivative of the total cost. Differentiate each term: \(d(x^{2})/dx=2x\), \(d(30x)/dx=30\), and the constant becomes zero. Differentiate term-wise. Constant becomes zero. Add derivative terms.
Marginal Cost is \(MC=\frac{dC}{dx}.\) Differentiating, \(\frac{d}{dx}(x^{2}+30x+1500)=2x+30.\) Thus Option C is correct. Option A ignores the linear term, Option B differentiates incorrectly, and Option D is not the derivative.
- Option A โ 2x omits the derivative of \(30x\).
- Option B โ x + 30 incorrectly differentiates \(x^{2}\).
- Option D โ 30x is not obtained by differentiation.
Used: Substitution
Application: Apply basic differentiation rules to each term separately.
Final Logic: \(MC=dC/dx=2x+30\), so Option C is correct.
"Cost โ Differentiate once."
18 The price per unit of a commodity is p = 30 - 2x. Finding the Marginal Revenue (MR) requires evaluating dR/dx. What is the MR expression?
Revenue equals price multiplied by quantity. Thus \(R=x(30-2x)=30x-2x^{2}\). Differentiating gives \(MR=30-4x\). Form revenue. Differentiate. Simplify.
Revenue is \(R=x(30-2x)=30x-2x^{2}.\) Differentiating, \(MR=\frac{dR}{dx}=30-4x.\) Therefore Option B is correct. Option A is only the price equation, while Options C and D are incomplete derivatives.
- Option A โ 30 โ 2x represents price, not marginal revenue.
- Option C โ 30 ignores differentiation of \(-2x^{2}\).
- Option D โ -4x omits the constant derivative.
Used: Elimination
Application: Construct the revenue function before differentiating.
Final Logic: Differentiate \(30x-2x^{2}\)to obtain 30โ4x.
"Revenue first, derivative next."
19 Exploring cost optimization concepts, if C(x) = 300x - 10xยฒ + (1/3)xยณ, finding the output 'x' at which Marginal Cost is minimum requires setting the second derivative of Cost equal to zero. What is this 'x'?
Marginal Cost is \(C^{'}(x)\). Its minimum occurs where \(C^{''}(x)=0\). Here \(C^{''}(x)=2x-20\), giving \(x=10\). Differentiate twice. Set second derivative to zero. Solve for \(x\).
\(C^{'}(x)=300-20x+x^{2}.\) Differentiate again: \(C^{''}(x)=2x-20.\) Setting \(2x-20=0\) gives \(x=10.\) Hence Option A is correct. Options B, C, and D do not satisfy the required condition.
- Option B โ 20 gives \(C^{''}(20)=20\neq 0\).
- Option C โ 30 also fails the condition.
- Option D โ 5 gives a negative value of the second derivative.
Used: Substitution
Application: Differentiate twice and substitute the condition \(C^{''}(x)=0\).
Final Logic: Only x = 10 satisfies the equation.
"Minimum MC โ Second derivative equals zero."
20 In revenue change analysis, if a company charges โน6000 per unit minus โน75 for each unit in excess, R(x) = x(9750 - 75x). The largest order size for maximum revenue occurs when R'(x) = 0. What is 'x'?
Expand the revenue function and differentiate. Setting \(R^{'}(x)=0\) gives the production level where revenue is maximum. Solving the equation gives \(x=65\). Differentiate revenue. Set derivative to zero. Solve for output.
Given \(R(x)=x(9750-75x)=9750x-75x^{2}.\) Then, \(R^{'}(x)=9750-150x.\) Setting \(R^{'}(x)=0\), \(9750=150x,x=65.\) Thus, Option C is correct. Options A, B, and D do not satisfy the maximum revenue condition.
- Option A โ 50 gives a positive derivative, so revenue is still increasing.
- Option B โ 60 is below the optimum.
- Option D โ 75 is beyond the maximum point where revenue decreases.
Used: Substitution
Application: Differentiate the revenue function and solve the resulting linear equation.
Final Logic: \(9750-150x=0\Rightarrow x=65\), making Option C correct.
"Maximum Revenue โ Set MR = 0."
