WECO1031 Term 4 2022 Assignment Questions – Version A 1. (5 marks) Suppose Delta Corp allocates $600,000 to spend on research and marketing. Delta Corp estimates that by spending $ on marketing and $ on research it will sell a total amount of () (measured in $): = 304513 Using Lagrange multipliers calculate the optimum amount that Delta Corp should spend on marketing and research to maximise sales 2. (5 marks) Suppose the demand function of a candy business () is given by = 1000 0.2 where: = The fixed costs of the candy business are $100, and the variable costs are $2 per unit. Calculate the unit price of candy that maximises the profit of the candy business. 3. (5 marks) Suppose Australia’s aggregate income () has two components: aggregate consumption () and aggregate investment (). In year : = 0.5 ( + ) = 0.7 + 500 = 0.2 + 500 Using differential equations, find an expression for ( ) (0) = 15,000.
