This paper is not to be removed from the Examination Halls

UNIVERSITY OF LONDON

MT105A ZA (279 005A)

BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences, the Diplomas in Economics and Social Sciences and Access Route

Mathematics 1 (half unit)

Tuesday, 8 May 2012 : 10.00am to 12.00pm

Candidates should answer all EIGHT questions: all SIX questions of Section A (60 marks in total) and BOTH questions from Section B (20 marks each). Graph paper is provided at the end of this question paper. If used, it must be detached and fastened securely inside the answer book. Calculators may not be used for this paper.

University of London 2012 UL12/0153

D01

PLEASE TURN OVER Page 1 of 5

SECTION A Answer all six questions from this section (60 marks in total). 1. The demand equation for a good is q (p + 3) = 8 and the supply equation is q p + 4 = 0, where p is the price and q is the quantity. Sketch the supply and demand functions for p 0. Determine the equilibrium price and quantity. 2. For some number a, we have the equations x + y + z = a, 2x + y + 2 z = 1 , x y 2z = 2 . Using a matrix method, nd expressions for x, y, z in terms of a. 3. Determine the following integrals:

x(x2 + 1)3/2 dx and

dx.

4. A monopoly producing a quantity q of product has xed costs of 10 and marginal cost function 3q 2 + 4. The demand equation for its product is p + q = 20, where p is the market price of the product. Find the prot function, in terms of q . Determine the production level that maximises the prot.

UL12/0153 D01

Page 2 of 5

5. George has opened a savings account with a bank, and they pay a xed interest rate of 5% per annum, with the interest paid once a year, at the end of the year. He opened the savings account with a payment of $100 on 1 January 2012, and will be making additional deposits of $200 yearly, on 1 January each year, starting 1 January 2013. What will his savings be after he has made N of these additional deposits? (Your answer should be an expression involving N .) Suppose George is saving for an item that costs B dollars. Derive an inequality for the number, N , of additional deposits he must make until the amount of money in the account is enough to buy the item. Your answer should take the form N f (B ), where f is a function of B . 6. Let M be a positive number. Let f be the function of two variables given by f (x, y ) = xy , where x, y 0. Use the Lagrange multiplier method to nd the maximum value of f (x, y ) subject to x + y = M . Hence show that for all a, b 0, a+b . ab 2

UL12/0153 D01

Page 3 of 5

SECTION B Answer both questions from this section (20 marks each). 7. (a) Show that 1 x 3 9x + 1 x+ 2 = . x 9 x2 9 Using this identity, or otherwise, determine the integral x3 9x + 1 dx. x2 9 (b) A function f of two variables is dened for (x, y ) = (0, 0) by f (x, y ) = Find the partial derivatives f f 2 f 2 f 2 f , , , , . x y x2 y 2 xy Verify that
2 2f 2f 2 2 f 3xy 2 + 3xy 2 (x + y ) = 0. x y xy

1 x2 + y 2

(c) Show that the function f (x, y ) = x4 2x2 y 2 + y 4 + y 3 has two critical points, one of which is (0, 0). By considering f (x, x), or otherwise, determine the nature of the critical point (0, 0).

UL12/0153 D01

Page 4 of 5

8. (a) A rm is the only producer of two goods, X and Y . If the rm produces quantities x and y of X and Y , respectively, then the corresponding prices pX and pY are related by the equations pY pX + 13 6x = 0, and pX 4pY + 26 6y = 0. The rms total cost for producing x of X and y of Y is 2x + y. Find an expression in terms of x and y for the rms prot function. Determine the quantities x and y that maximise the rms prot. (b) The function f is dened for x > 1 by f (x ) = 1 1 ln x x + 1 1 1 ln 1 . x x

Show that the derivative of f is f (x ) = 1 x2 ln 1 1 x ln 1 x .

Use this to nd any critical (or stationary) points of f .

END OF PAPER

UL12/0153 D01

Page 5 of 5