# 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

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

**Related Book For**

## Calculus For Business, Economics And The Social And Life Sciences

**ISBN:** 9780073532387

11th Brief Edition

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

**Question Details**

Chapter #

**3**Section: Exercises 3.2

Problem: 59

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