Re: Landsburg chpt. 5

collision@email.com
Wed, 7 Apr 1999 13:13:44 -0400 (EDT)

I agree with your assessment of how to calculate marginal revenue (using derivatives).

If you were to look at actual CAS exams with sample solutions, I believe there is at least one recent question that is very similar, AND they use the derivative method . . . the two are virtually the same. The derivative method is just that much more precise (try using CSM method and the difference between points .00001 and .00002, you get the idea)

My opinion is that the CSM makes some of their solutions messier than they have to be. Not to mention, some of the questions they include wouldn't be asked in current exams because they're from old exams based on different/ older books, no longer on the syllabus

These are just this authors opinions and not those of the CAS, etc, etc

---- On Apr 7 "Steve Langlois"<slanglois@proselect.com> wrote:
>
> After some of those Daykin and Bowers questions, this one should be
> relatively easy. 1984 exam 5 question #73 - They give the demand
> equation as P=1,000-2Q. They want equations for total revenue and
> marginal revenue. Total revenue is 1,000Q-2Q^2. To get the MR, I
> take the derivative of TR to get 1,000-4Q. The answer in the CSM
> manual is 998-4Q. They use ((Q+1)plugged into TR equation) minus (Q
> plugged into TR equation). I know the answers are close but the
> derivative is so much easier [to work with]. Do you think the CAS
> will accept the derivative based solution?
>
> Steve
>
>

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