Question 1:
Consider the linear demand curve for Maize with the demand function Qd=578.66-73.17P, Given the elasticity of the linear demand function of Maize Qd=A-BP at price P is Ed=-B(P/Q), where Q the quantity demanded of Maize. At what price will total expenditure on Maize be largest?
Question 2:
Suppose you hire a machine to work on your field for up to six hours. The total cost of the work is C(H)=110H+40H2 and the marginal cost is MC(H)=110+80H and the MB(H)=654-80H. What will you choose to maximize your utility?