Re: maths

Posted by anon_econ on Dec 29, 2011; 5:05pm
URL: http://discussion-forum.276.s1.nabble.com/maths-tp7135691p7136181.html

1) First of all since the function is continuous & has the same value at 2 points, it must have at least 1 max or  min b/w the 2 points. Now, at a max/min, f'(x) has to be equal to 0. In that case f"(x) would be 1, which is positive. According to the 2nd order condition, if f"(x) is positive, f always reaches a minimum.
3) Sunk cost is what cannot be recovered. Fixed cost is what u have to pay once u decide to produce and is independent of the production level. So the ans is d.
Don't know about the other 2. Question 4 is extremely strange.