Test IV

QT Repeat Assignment

1. Define break-even point. For a manufacturer of dry cells, the daily cost of production C for
x cells is given by, C(x) = Rs. (2.05x + 550). If the price of a cell is Rs. 3, determine the
minimum number of cells that must be produced and sold daily to ensure no loss?
2. The market supply of an item is of the form, q = a + bp, where p represents the market
price/unit of the item. It is observed that 1000 units of the item can be sold at Rs. 5 per unit
and 1200 units at a price of Rs. 4.50 per unit. Determine the values of a and b and interpret
your answer.
3. Two finite sets have n and m elements. The number of elements in the power set of first set
is 48 more than the total number of elements in power set of the second set. Then find the
values of m and n.
4. In a class of 120 students numbered 1 to 120, all even numbered students opt for Physics,
whose numbers are divisible by 5 opt for Chemistry and those whose numbers are divisible
by 7 opt for Math. How many opt for none of the three subjects?
5. Of the 200 candidates who were interviewed for a position at a call center, 100 had a two
wheeler, 70 had a credit card and 140 had a mobile phone. 40 of them had both, a twowheeler and a credit card, 30 had both, a credit card and a mobile phone and 60 had both, a
two wheeler and mobile phone and 10 had all three. How many candidates had none of the
three?
6. The schedule of G first year students was inspected. It was found that M were taking a
Mathematics course, L were taking a Language course and B were taking both a Mathematics
course and a Language course. Which of the following expression gives the percentage of the
students whose schedule was inspected who were taking neither a mathematics course nor a
language course?
7. In a recent survey of 400 students in a college, 100 were listed as studying typing (T) and
150 were listed as doing accountancy (A). 75 were registered for both courses. You are
required to
a) Find the number of students in the college who are not registered for either course.
b) How many students were registered for typing only?
8. A survey was conducted on the newspaper readership of 3 dailies; the Mirror, the Citizen
and the Times, M, C, T respectively and the following data was obtained:The number of people who read M, C & T was found to be 55, 45 and 39 respectively. The
number that read M & T = 19. The number that read C & M = 15. The number that read C &

T = 14. Those who read all the 3 were found to be 4 people only. You are to determine the
number of people who:
a) Read the Mirror only.
b) Read Citizen or Times but not the Mirror
c) The total number of people interviewed if 5 people read none of the papers.
9. A sample of 100 Young Christian Union voters revealed the following concerning three
candidates; Ali, Bungei and Chiru, who were running for the Y.C.S Party Chairman,
Secretary and Treasurer respectively. 14 preferred both Ali and Bungei, 49 preferred Ali or
Bungei but not Chiru, 21 preferred Bungei but not Chiru or Ali, 61 preferred Bungei or Chiru
but not Ali, 32 preferred Chiru but not Ali or Bungei, and 7 preferred Ali and Chiru but not
Bungei. You are required to find:
i) With the aid of a Venn diagram, determine the number of voters that were in
favor of all the three candidates. Assume that every member of Y.C.S voted
for at least one candidate.
ii) Also determine the candidate that went unopposed if a rule of 50% majority
were used in such a decision.
10. A manufacturers cost function is C=0.1x2 + 3, determine the average cost function,
marginal cost function and marginal cost when 4units are produced. Also find the actual cost
of producing fifth unit.
11. The total cost C(x) of a firm is: C(x) = 1500 + 30x + x2, where x is the output. Find the
average cost function, marginal cost function and marginal cost, when 20 units are produced.
Also find the actual cost of producing twenty first unit.
12. The cost C(x) of a firm is: C(x) = 0.05x3 0.02x2 -30x + 5000 where x is the output.
Determine :
(i)
(ii)
(iii)
(iv)

Average cost
Marginal average cost
Marginal cost
Rate of change of MC with respect to x

13. If the total cost function is given by C= a + bx +cx2 where x is the quantity of output,
show that d/dx (AC) = 1/x (MC- AC) where MC and AC are marginal and average cost.
14. Find the total revenue and marginal revenue for a firm operating under pure competition
with a current price of Rs 2 per unit.
15. The demand function of a product is given by p = 200 5x, where p is the price per unit
and x is quantity demanded. Find MR.

16. A book publisher finds the production cost of the book is Rs.30 and the fixed cost per
year amounts to Rs.25,000. If each book is sold at the rate of Rs.50,find
i. The cost function
ii. The revenue function
iii. The minimum number of books sold per year in order that there is no
loss.
17. The daily cost of production C for X unit of an assembly is given by:
C(x) = Rs.12.5x + 6400
(1). if each unit is sold for Rs. 25, determine the minimum number of unit that should
be produce an sold to ensure no loss.
(2). if the selling price is reduced by Rs. 2.5 per unit, what would be the break-even
point?
(3). if it is known that 500 units can be sold daily, what price per unit should be
charged to ensure guarantee no loss?
18. A company sells x tins of talcum powder each day at Rs.10 per tin. The cost of
manufacturing is Rs.6 per tin and the distributor charges Rs.1 per tin. Besides these he daily
overheads cost comes to Rs.600. determine the profit function. What is the profit if 500 tins
are manufactured and sold a day? How do you interpret the situation if the company
manufactures and sells 100 tin a day? What is the break-even point?
19. A company decides to set up a small production plant for manufacturing electronic
clocks. The total cost for initial set-up (fixed cost) is Rs.9 lakhs. The additional cost (variable
cost) for production each clock is Rs.300. each clock is sold at Rs.750. during the first month,
1500 clocks are produced and sold:
1. Determined the cost function C(x) for the total cost of producing x clocks.
2. Determined the revenue function R(x) for the total revenue from the sales of x
clocks.
3. Determined the profit function P(x) for the profit from the sales of x clocks.
4. What profit or loss did the company incurs during the first month when all the
1500 clocks are sold?
5. Determined the break-even point.

20. A company producing dry cells introduces production bonus for its employees which
increases the cost of production. The daily cost of production C(x) for x number of cells is
Rs. (3.5x+ 12,000).
(a) If each cell is sold for Rs. 6 , determine the number of cells that should be produced to
ensure no loss.
(b) If the selling price is increased by 50 paise, what would be the break even point?
(c) If at least 6000 cells can be sold daily, what price the company should charge per cell to
guarantee no loss?

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