If a production function is given by the equation Q = 12X + 10X2 - X3, where Q = Output and X = Input, then calculate the equations for
a. average product
b. marginal product
c. point of diminishing average returns
d. point of diminishing marginal returns
a. AP = Q/X, or 12 + 10X - X2
b. MP = dQ/dX, or 12 + 20X - 3X2
c. DAR occurs where AP at a maximum, or dAP/dX = 0, or 10 - 2X = 0, X = 5
d. DMR occurs where MP at a maximum, or dMP/dX = 0, or 20 - 6X = 0, X = 3.33
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A) basic duration analysis. B) basic gap analysis. C) interest-exposure analysis. D) gap-exposure analysis.
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a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
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a. decrease in consumer income. b. increase in the price of jams, jellies, and preserves. c. decrease in the price of bread. d. drought in Georgia that destroyed 30 percent of the peanut crop. e. decrease in the price of bologna.
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