1st in Trouble

[CharlieDay]

Have a repeat exam coming up and struggling with some sample questions, please help xxx


1--The demand function for a monopolist is given by the equation P = 50 – 2Q.

(i)

Write down the equation for the total revenue (TR) function


(ii)

Find the roots of the TR function

(a)

A firm’s short-run production function is given by Q = L2e-0.01L where Q = output and
L = labour. Find the value of L that maximises the average product of labour.

[jackwilson]

Any expert will help you here.

[leesajohnson]

Agree with JackWilson, expert can only help you.

[Guest]

I guess I'm an "expert" having both taken and taught courses of this kind.

However, the best help I can give you is to suggest that you check, in your textbook, the definitions of the words you are using here! What does a "demand" equation tell you? What do "P" and "Q" represent? And what is the difference between "demand" and "total revenue"? How are they connected?

If you can sell 10 items for $5 each, what would be your total revenue? How are those connected to your "P" and "Q"?

If you are not able to answer those questions, you have no business trying to take this test! Go to your instructor and throw yourself on his/her mercy!

[Guest]

For the last question, I don't understand what " L2e-0.01L" is supposed to mean. One guess is that the "e" was not supposed be there and that you mean L^2- 0.01L. The other is that "e" indicates the exponential multiplying- that "2e-0.01" is 2x 10^{-0.01}= 2 x .0.998= 1.996 and the function is L^1.996- 0.01L.

In either case, a function like this will be maximum where its derivative is 0. Do you know how to differentiate either function?