3- Diffrentiation

Question 1

Quotient rule

Answer 1

y= u/v
dy/dx= (v(du) - u(dv)) / v^2

Question 2

Derivative of e^x

Answer 2

e^x

Question 3

Derivative of lnx

Answer 3

1/x

Question 4

Derivative of ln2x

Answer 4

1/x

Question 5

Derivative of total revenue

Answer 5

marginal revenue

Question 6

Change in revenue approximation equation

Answer 6

Change in revenue = marginal revenue x change in demand
From the tangent on TR curve

Question 7

How to work out total revenue?

Answer 7

P x Q

Question 8

How to work out average revenue?

Answer 8

TR/ Q
Demand curve is the AR curve

Question 9

Demand function for perfect competition

Answer 9

P= b
- Price an AR are constant

Question 10

Total revenue for perfect competition

Answer 10

bQ

Question 11

Marginal revenue of perfect competition

Answer 11

b
derivative of TR

Question 12

Change in total cost approximation equation

Answer 12

change in total cost = marginal cost x change in output

Question 13

What is marginal product of labour?

Answer 13

The derivative of output with respect to labour.

Question 14

What is output assumed to be a function of?

Answer 14

L and K
L(labour)
K (capital)

Question 15

Relationship between marginal product of labour and labour

Answer 15

As labour increases, MPL decreases- shows law of diminishing marginal productivity.

Question 16

Law of diminishing marginal productivity

Answer 16

States an increase in labour will eventually decline marginal output. Once the size of the workforce has reached a certain threshold, the marginal product of labour will get smaller.

Question 17

Elasticity equation

Answer 17

dQ/dP x P/Q

Question 18

S.R production function- how to work out the max workforce to optimise output.

Answer 18

• Find second derivative of function and find max point value.

Question 19

Where is the maximum point for APL (average product of labour)?

Answer 19

Where APL = MPL- due to law of diminishing returns.
Or find max point value using diffrentiation

Question 20

How to find profit max quantity of monopoly firm?

Answer 20

Profit (pi) = TR (PQ) - TC (CQ)
Diffrentiate and find max point

Question 21

Where does a monopolist profit maximise?

Answer 21

MC=MR

Question 22

Second derivative when curve is concave upwards?

Answer 22

Positive

Question 23

Second derivative when curve is concave downwards?

Answer 23

Negative