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Suppose that in a certain community, there will be M(r) thousand new houses built when the 30-year fixed mortgage rate is r%, where a. Find M'(r) and M(r). b. Sketch the graph of the construction function M(r). c. At what

Suppose that in a certain community, there will be M(r) thousand new houses built when the 30-year fixed mortgage rate is r%, where


image


a. Find M'(r) and M"(r).


b. Sketch the graph of the construction function M(r).


c. At what rate of interest r is the rate of construction of new houses minimized?

Transcribed Image Text:

M(r) 1 + 0.02r 1 + 0.009/²

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a b c To find the rate of interest at which the rate of construction of new houses is minimized …View the full answer


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Calculus For Business, Economics And The Social And Life Sciences

Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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Question Details
Chapter # 3
Section: Exercises 3.2
Problem: 59
Posted Date: June 01, 2023 07:14:34
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