Mock Exam 05: Foundations through Differential Calculus

BFP Mathematics Course
Dr. Nikolai Heinrichs & Dr. Tobias Vlćek

Name: _______________________

Duration: 180 minutes

Total Points: 100

Permitted Aids:

Instructions:

Problem 1: Service Industry Cost Analysis [36 pts. total]

A consulting firm analyzes its cost structure for providing business advisory services. Financial analysis reveals the following information:

The fixed costs are 180 currency units (abbreviated as “CU” hereafter). At 2 quantity units of service (abbreviated as “Un” hereafter) the marginal costs are 12 CU. At 3 Un the curvature of the cost function changes sign. At 10 Un the total costs amount to 980 CU.

Market research shows that the demand for their services follows a linear function assuming a maximum price of 256 CU and a market saturation at 8 Un.

Part A: Function Development

  1. Determine the cost function \(K(x)\), assuming it is a polynomial of third degree. [13 pts.]

  2. Determine the linear demand function \(p(x)\). [3 pts.]

For verification purposes only:

\(K(x) = 2x^3 - 18x^2 + 60x + 180\)

\(p(x) = -32x + 256\)

  1. Determine the revenue function \(E(x)\) and show that it can be written as \(E(x) = -32x^2 + 256x\). [2 pts.]

  2. Show that the profit function is given by \(G(x) = -2x^3 - 14x^2 + 196x - 180\). [2 pts.]

Part B: Optimization and Business Strategy

  1. Prove that the break-even point is at 1 Un of produce. Explain the significance of this quantity for the company. [3 pts.]

  2. Compute the maximum profit and prove it really is a maximum. [4 pts.]

  3. Decide which price the company has to ask for in order to gain the maximum profit. [3 pts.]

  4. Determine the marginal profit at the profit-maximizing production level. Interpret what this value tells us about the firm’s pricing strategy. [2 pts.]

  5. Compute the minimum variable cost per unit and the short-term lower limit price. [4 pts.]

Problem 2: Exponential Function Analysis [39 pts. total]

Let the function \(f\) be given by \(f(x) = x \cdot e^{-x/2}, \quad x \in \mathbb{R}\)

Part I: Basic Properties and Behavior

  1. Determine the domain of the function \(f\). [1 pt.]

  2. Investigate the asymptotic behavior of \(f\), and determine the \(x\)- and \(y\)-intercepts. [8 pts.]

  3. Explain in complete sentences what the asymptotic behavior tells us about the long-term behavior of this function. [2 pts.]

Part II: Critical Analysis

  1. Compute the first derivative \(f'(x)\) using the product rule. [4 pts.]

  2. Determine the nature (classify as local maximum, local minimum, or saddle point) and the coordinates of all stationary points (critical points where \(f'(x) = 0\)). [5 pts.]

  3. Find the equation of the tangent line at the point \(\left(2, \frac{2}{e}\right)\). [4 pts.]

  4. Compute the angle of intersection \(\alpha\) between the tangent and the \(x\)-axis. [2 pts.]

  5. Find the second derivative \(f''(x)\) and determine where the function changes concavity (inflection points). [4 pts.]

For verification purposes only:

\(f'(x) = e^{-x/2}(1 - x/2)\)

Maximum at \(x = 2\)

  1. Argue whether the following statements are true or false: [3 pts.]

    1. \(f''(2) = 0\)

    2. In the interval \(0 < x < 2\), the function \(f\) is concave down.

    3. \(f'(x)\) possesses a maximum at \(x = 2\).

    4. The tangential gradient of \(f\) at \(x = 0\) is bigger than the slope of the secant in the interval \([0, 2]\).

  1. Sketch the graph \(G_f\) in the interval \([-2; 10]\). Label stationary points, inflection points, and intercepts. [6 pts.]

Problem 3: Function Determination and Parameter Analysis [25 pts. total]

Part A: Revenue Function Determination

An e-commerce company’s revenue function is modeled by a cubic polynomial \(R(x) = ax^3 + bx^2 + cx + d\), where \(x\) represents thousands of customers served per month.

The following conditions are established from historical data:

  • When serving zero customers, revenue is zero: \(R(0) = 0\)
  • At 4 thousand customers, the revenue function has an inflection point with a value of 256 CU
  • Revenue reaches a local maximum at 8 thousand customers
  1. Translate each condition into a mathematical equation. Explain why the inflection point condition at \((4, 256)\) provides two equations. [4 pts.]

  2. Set up and solve the complete system of equations to find \(a\), \(b\), \(c\), and \(d\). [8 pts.]

  3. Verify that your function satisfies the conditions \(R(4) = 256\) and \(R''(4) = 0\). [2 pts.]

For verification purposes only:

\(R(x) = -2x^3 + 24x^2\)

Part B: Function Family Investigation

Consider the family of functions defined by: \[f_a(x) = (x - a)^2 \cdot e^{-x}, \quad x \in \mathbb{R}, \quad a \in \mathbb{R}\]

  1. Show that for all values of the parameter \(a\), each function \(f_a\) has exactly one zero. State the coordinates of this zero in terms of \(a\). [3 pts.]

  2. Finding the local maximum:

    1. Show that the first derivative can be written as: \[f_a'(x) = e^{-x}(x - a)(a + 2 - x)\] [2 pts.]

    2. Using the factored form above, find all critical points of \(f_a\). Explain why \(x = a\) is not a local extremum. [2 pts.]

    3. Verify that the local maximum occurs at \(x = a + 2\) and calculate \(f_a(a+2)\). [2 pts.]

  3. The maximum value of \(f_a\) is \(y_{max} = 4e^{-(a+2)}\).

    1. Calculate the maximum height when \(a = 0\). [1 pt.]

    2. For which value of \(a\) does the maximum height equal \(4e^{-3}\)? [1 pt.]

Appendix: Practice Materials (Not Part of Examination)

Grading Scale Reference

Grade Points Required Percentage Self-Assessment
1 (Excellent) 91-100 91-100% Outstanding
2 (Very Good) 77-90 77-90% Strong understanding
3 (Good) 63-76 63-76% Solid competence
4- (Pass) 45-62 45-62% Meets requirements
5-6 (Fail) 0-44 0-44% Needs review

Focus Areas by Score Range:

If you scored 0-44 points:

  • Review fundamental concepts in Sections 01-04
  • Practice basic derivative rules and function analysis
  • Focus on problem setup and equation-solving techniques
  • Consider additional practice with simpler problems first

If you scored 45-62 points:

  • Strong foundation, but work on connecting concepts
  • Practice optimization problems with economic interpretation
  • Improve curve sketching and graphical analysis skills
  • Review related rates systematic approach

If you scored 63-76 points:

  • Good understanding overall
  • Focus on excellence-level problems (parts f-h)
  • Practice comprehensive function analysis
  • Work on explaining business interpretations clearly

If you scored 77-90 points:

  • Very strong preparation
  • Fine-tune proof techniques and verification steps
  • Practice time management for complex problems
  • Review any specific topics where you lost points

If you scored 91-100 points:

  • Excellent mastery
  • Maintain your preparation level
  • Help others understand difficult concepts
  • Focus on exam strategy and time optimization

Topic Review Checklist

After completing this exam, identify which topics need review:

Problem 1 Topics:

Problem 2 Topics:

Problem 3 Topics:

Remember: This practice exam is a learning tool. Use your performance to guide your study, not to judge your abilities!