i. A piece of equipment cost a certain factory Rs.6,00,000.

If it depreciates in
value 15% the first year, 13.5% the next year, 12% the third year and so on,
what will be its value at the end of 10 years, all percentages applying to the
original cost?
ii. Three firms A , B , C supplied 40 , 35 and 25 truckloads of stones and 10 , 5 ,
8 truckloads of sand respectively to a contractor. If the costs of stone and
sand are Rs.1,200 and Rs.500 respectively , find the total amount paid by the
contractor to the firms using matrix method. 2
(2x

iii. Find the derivative of the function w.r.t ‘x’ : y = +3x + 7)

iv. Obtain the direct and cross second order derivatives : Z = (2x2 + 6y) (5x –
3y3)
v. Solve the indefinite integral : ∫ (x3 + 2x2 + 3x) dx
√x
a) A Mr. Shekhar buys a piece of land for which he agrees to make 10 annual
payments of Rs 20,000 each, the first being made at the end of 3 years. Find
the equivalent cash price of this property if money is worth 5% effective.

b) Find the solution to the system of equations using matrix inversion method :

2x – y + z = 7

3x + y + 5z = 13

x +y+z=5

c) The average cost function (AC) for a product is given by AC= 0.0002x 2 –
0.05x +

7 + 8000/x , where x is the output. Find the marginal cost function. What is
the

Marginal cost when 100 units are produced? Interpret your result.

d) Compute the average and marginal productivities of labour and capital for
the Cobb Douglas production function of the form Q = A.Lα.Kβ = 500.L0.4.K0.6
where Q is the total production.
e) If the marginal revenue function for output x is given by MR = __6__ + 5 ,
find the total revenue and demand functions. (x +
2)2
 A. A calculator manufacturing company introduces production bonus to the
workers that increases the cost of the calculator. The daily cost of
production C
for x calculators is given by C(x) = 205x + 55000.
i. If each calculator is sold for Rs.300, determine the minimum number that
must be produced and sold daily to ensure no loss.
ii. If the selling price is increased by Rs.30 per piece, what would be the break-
even point?
iii. If it is known that at least 500 calculators can be sold daily, what price the
company should charge per piece of calculator to guarantee no loss?

B. The moneylender lends at a certain rate of interest, Rs. 2,400 to Mr. Shah
and
Rs.4,200 to Mrs. Vasu at a rate of interest 3% less than that of Mr. Shah. If
after 5
years the moneylender receives Rs.1890 as total simple interest, find the
rate of
interest charged to Mr. Shah.

A. Leontief’s Input-Output matrix for a two sector economy is given below :

Inter industry demand = 300 600 Final demand = 100
400 1200 400
Labour inputs = [ 100 200 ]. Find the technology matrix , total outputs if
final
demands are 200 and 800 units respectively , total labour requirement for
the
new output.
B. Solve the equations using Cramer’s Rule.
x +y+z =9

2x + 5y + 7z = 52

2x + y - z = 0

.A. A cottage toy industry achieves daily profit function P(x) given by
P(x) = - 0.005x2 + 2x – 75
which is based on manufacture and sale of x units of toys. Find :
i. How many toys the industry must manufacture and sell per day to
achieve maximum profit?
ii. What is the profit per toy when maximum profit is achieved?

B. The demand function for a commodity is p= 10 + 5x – 2x 2. Find the elasticity

of
demand when x= 2.

A. Given the Utility function U = (x + 2) (y +1) ; prices of the commodities X and Y

as
PX = 1 , PY = 9 and income M = 51. Construct the budget constraint of the
 consumer and optimize the utility function using Lagrangean Multiplier
method.
Also find the equilibrium levels of purchase of X and Y.

B. The supply function for a commodity is given as p = 4 + x. Determine the

producer’s surplus if 12 units of the commodity are sold in the market at
equilibrium.
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i. A club consists of members whose ages are in A.P., the common difference
being 6 months. The youngest member of the club is 14 years old and the
sum of ages of all members is 500 years. Find the number of members in the
club.
ii. The prices of three commodities A , B , C in a shop are Rs.5 , Rs.6 , Rs.10
respectively. Customer X buys 8 units , 7 units and 8 units of commodities A ,
B , C respectively while Customer Y buys 6 units , 7 units and 8 units of
commodities A , B , C respectively. In matrix notations show the prices and
quantities of commodities and find the total amount spent by the 2
customers.
iii. Find the derivative of the function w.r.t ‘x’ : y = log(9x2 + 3x - 7)5
iv. Obtain the direct and cross second order derivatives : Z = (x2 / y3) + ( y2 /
x3)
v. Solve the indefinite integral : ∫ √x (7x5 + 5x3 + 3x + 1) dx

a) At six-month intervals, Atmanand deposited Rs.100 in a savings account

which credits interest at 10% per annum compounded semi-annually. The
first deposit was made when Atmanand’s son was six months old and the last
deposit was made when his son was 8 years old. The money remained in the
account and was presented to his son on his 10th birthday. How much did he
receive?
b) Find the solution to the system of equations using matrix inversion method :

-x + 2y - 3z = -8

2x - y + 4z = 17

3x + 4y + z = 22

c) A firm knows that the demand function for one of its products is linear of the
form p = a + bx. It also knows that it can sell 1000 units when the price is
Rs. 4 per unit, and it can sell 1500 units when the price is Rs 2 per unit. Find
the total revenue , average revenue and marginal revenue functions.

d) Find the average and marginal productivities of labour and capital for the
Cobb
Douglas production function of the form X = A.Lα.Kβ = 4.K0.2.L0.8 where X is
the
total output produced.
 d) The marginal cost of a product is given by MC = 10 – 0.01x + 0.0009x2.Find
the
total cost and average cost functions if the cost of producing 10 units is
given by
Rs.105.

A. A Leather Company starts production of a new variety of ladies bags. For the
first
year, the fixed cost for setting up the infrastructure comes to Rs.1,40,000.
Variable
cost for the production of each bag is Rs.75. But the company gives
production
bonus to its employees. So the variable cost further increases by 50 paise
per
bag. Each bag is sold at Rs.250.50. What is the profit function P(x) for x bags
produced and sold in the first year? If 700 bags are produced and sold in
the
first year, what profit or loss would the company incur? What is the
breakeven
point?
B. Mr. Rana borrowed a sum of Rs.100,000 from SBI bank at 12% p.a. and is
due to
return the money borrowed in 5 yearly installments (end of the year
payments).
Find the yearly EMI that he has to pay and also prepare an amortization
schedule.

A. Leontief’s Input-Output matrix for a two sector economy is given below :

Inter industry demand = 20 25 Final demand = 55
50 40 60
Labour inputs = [ 30 85 ]. Find the technology matrix , total outputs if
final
demands of both the sectors are doubled respectively , total labour
requirement
for the new output.
B. Solve the equations using Cramer’s Rule.
x +y+ z =6

5x - y + 2z = 9

3x + 6y - 5z = 0

A. The cost function of a manufacturing firm is

C= 300x – 10x2 + 1/3x3

Determine the levels of output at which :

i. marginal cost is minimum

ii. average cost is minimum
 iii. the average cost is equal to marginal cost

B. The supply curve for a commodity is p= (9 + x) 1/2. Find the elasticity of supply
at
price p = 4 Rs.

A. Given the utility function of an individual as U = 4x1 + 17x2 – x12 – x1x2 – 3x22 and
the budget constraint as Y = x1 + 2x2 = 7 ; find the equilibrium purchase of
the
goods by the consumer for maximum utility.

B. Under perfectly competitive conditions the supply function is p = 2x2 + 4.If

the
equilibrium output of a firm is 2 units, find producer’s surplus.

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i. A man got a lottery of 65 lacs in January 1996, for which he paid 20% income
tax. Out of joy, he decides to donate from February 1, 1996, 1 paisa on the
first day, 2 paise on the second day, 4 paise on the third day and so on till the
end of Febuary, 1996. Find out if the money available with him is enough to
meet his desire or not?
ii. A company has two plants. Plant 1 is capable of 5 items , 10 items and 3
items of goods A , B , C respectively per hour of the operation whereas Plant
2 is capable of 5 items , 6 items and 6 items of goods A , B , C respectively
per hour of the operation. Using matrix operations determine the total
number of items of goods A , B , C produced if the Plants 1 and 2 are
operated for 10 hours and 5 hours respectively.
iii. Find the derivative of the function w.r.t ‘x’ : y = 1 + logx
1 – logx
iv. Obtain the direct and cross second order derivatives : Z = x4 + x3y2 – 3xy3 –
2y3
v. Solve the indefinite integral : ∫ x2 (4 – x)2 dx
√x
a) A machine costs a company Rs. 52,000 and its effective life is estimated to
be 25 years. A sinking fund is created for replacing the machine by a new
model at the end of its life time, when it scrap realizes a sum of Rs. 2,500
only. The price of the new model is estimated to be 25% higher than the price
of the present one. What amount should be set aside at the end of each year,
out of the profits for the sinking fund, if it accumulates at 4% per annum
compounded annually?
b) Find the solution to the system of equations using matrix inversion method :

x + 2y - z = 3

3x - y + 2z = 1

2x - 2y + 3z = 2
 c) A monopolist’s demand function is p = 300- 5x. Find the marginal revenue
function. At what price is the marginal revenue zero? Also find the slopes of
the MR and AR curves.

d) Find the average and marginal productivities of labour and capital for the
following production function of the form X = 2L2K3 – 4L3K4 where X is the
output.

e) Marginal propensity to save function is given by MPS = 0.3 – 0.1Y1/2 . Find the
total savings function , assuming that savings is nil when income Y is = 81.

A. The cost function C(x) for “x” breads is given by C(x) =3.5x + 12000. Each bread
Is put to a special levy of 20 paise for Andhra Pradesh cyclone victims.
i. If each bread is sold for Rs. 6, determine the minimum number of breads that
should be produced and sold to ensure no loss?
ii. If the selling price is increased by 70 paise per bread, what would be the
break-even point?
iii. If 6000 breads are sold only, what price per bread should be charged to
guarantee no loss?

B. Mr. Amar wants to send his son for higher studies abroad after 10 years. He
expects the cost of these studies to be Rs.100,000. How much should he
save at
the end of each year to have a sum of Rs.100,000 at the end of 10 years, if
the
interest rate is 12% compounded annually?

.A. Leontief’s Input-Output matrix for a two sector economy is given below :
Inter industry demand = 100 200 Final demand = 100
200 300 200

Labour inputs = [ 100 200 ]. Find the technology matrix , total outputs if
final
demands are 150 and 250 units respectively , total labour requirement for
the
new output.

B. Solve the equations using Cramer’s Rule.

3x - y + 4z = 13

5x + y - 3z = 5

x -y+ z = 3

.A. A television set manufacturer produces x sets per week at a total cost of
 Rs. TC = (x 2 + 78x + 2500). The demand function faced by the firm is x =
(600-p)/ 8

when the price is p per set. Show that the maximum profit is obtained when
29

sets are produced. Also find the profit maximizing price.

B. Find the elasticity of demand and supply at the equilibrium point for the
demand

function p = 16 - x2 and supply function p = 2x2 + 4, where p is the price and

x is

the quantity.

A. The production function is q = x.y ; the cost (of production) constraint is 50 = 2x

+y
+ 10. Using Lagrangean Multiplier method determine the maximum output
that
the firm can produce and the optimum levels of inputs X and Y.

B. The demand law for a commodity is p = 35 – 2x – x2. Find the Consumer’s

Surplus
at equilibrium price level of p = 20.

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