Applied Mathematics Handout PDF
Applied Mathematics Handout PDF
Applied Mathematics Handout PDF
Table of Contents
Contents Page
Question No. 5:
x 1 1 1
2 2
0
lim 0
x1 x 1 11 2
Question No. 6:
x 1 1 1
2 2
2
lim 1
x1 x 1 11 2
Question No. 7:
x 5 2 5
2 2
9
lim o r u n d e fin e d
x 2 x 2 2 2 0
A n s : L im it d o e s n o t e x is t
Question No. 9:
1 1
li m ( x 1) 3
( a 1) 3
x a
1 1
lim ( x 1) 2
( 2 4 1) 2
25 5
x 24
4( 3 ) 9 4(9 ) 9
2
4x 9
2
2 4 0
lim
x 3
2 2x 3 2( 3 ) 3 33 0
2
It a p p e a r s f r o m th e a n s w e r th a t d e n o m in a to r a n d n u m e r a to r
h a v e a c o m m o n f a c to r a n d th e lim it c a n b e e v a lu a te d a f te r
e m p lo y in g th e p r o c e s s o f c a n c e lla tio n .
4x 9 (2 x) 3 ( 2 x 3)( 2 x 3)
2 2 2
2( 3 )3 33 6
2
A ns: 6
9( 5 ) 25 9(25 ) 25
2
9 x 25
2
3 9 0
lim
x 5
3 3x 5 3( 5 ) 5 3( 5 )5 0
3 3
It a p p e a r s f r o m th e a n s w e r th a t d e n o m in a to r a n d n u m e r a to r
h a v e a c o m m o n f a c to r a n d th e lim it c a n b e e v a lu a te d a f te r
e m p lo y in g th e p r o c e s s o f c a n c e lla tio n .
9 x 25 (3 x ) 5 (3 x 5 )(3 x 5 )
2 2 2
3( 5 ) 5 5 5 10
3
A ns: 10
3
x 0
lim 4
x 0 x 0
It a p p e a r s f r o m th e a n s w e r th a t d e n o m in a to r a n d n u m e r a to r
h a v e a c o m m o n f a c to r a n d th e lim it c a n b e e v a lu a te d a f te r
e m p lo y in g th e p r o c e s s o f c a n c e lla tio n .
3 3
x x 1 1
lim 4
lim 3
o r u n d e f in e d
x 0 x x 0 x(x ) x 0
A n s : L im it d o e s n o t e x is t
( h )( 2 x 3 h ) (0 ){2 x 3(0 )} 0
lim
h 0 h 0 0
It a p p e a r s f r o m th e a n s w e r th a t d e n o m in a to r a n d n u m e r a to r
h a v e a c o m m o n f a c to r a n d th e lim it c a n b e e v a lu a te d a f te r
e m p lo y in g th e p r o c e s s o f c a n c e lla tio n .
( h )( 2 x 3 h )
lim lim ( 2 x 3 h ) { 2 x 3 ( 0 ) } 2 x
h 0 h h 0
A ns: 2x
x 1 1 1
3 3
0
lim
x1 x 1 11 0
It a p p e a rs fro m th e a n s w e r th a t d e n o m in a to r a n d n u m e ra to r
h a v e a c o m m o n fa c to r a n d th e lim it c a n b e e v a lu a te d a fte r
e m p lo y in g th e p ro c e s s o f c a n c e lla tio n .
x 1 ( x 1)( x x 1)
3 2
lim lim ( x x 1) 3
2
lim
x1 x 1 x1 x 1 x1
A ns: 3
x 2 2 2
3 3
6
lim o r u n d e fin e d
x 2 x 2 2 2 0
A n s : L im it d o e s n o t e x is t
x 2 x2
lim ( ) lim ( ) lim (1) 1
x 2 x2 x2 x 2 x2 x 2
A ns: 1
x 1
2 2
x 1 0
lim ( ) lim ( )
x1 x 1 x 1 x1 x 1 0
It a p p e a rs fro m th e a n s w e r th a t d e n o m in a to r a n d n u m e ra to r
h a v e a c o m m o n fa c to r a n d th e lim it c a n b e e v a lu a te d a fte r
e m p lo y in g th e p ro c e s s o f c a n c e lla tio n .
x 1 ( x 1)( x 1)
2
A ns: 2
x x6 2 26
2 2
0
lim
x 4 2 4
2 2
x 2 0
It a p p e a r s f r o m th e a n s w e r th a t d e n o m in a to r a n d n u m e r a to r
h a v e a c o m m o n f a c to r a n d th e lim it c a n b e e v a lu a te d a f te r
e m p lo y in g th e p r o c e s s o f c a n c e lla tio n .
x x6 x 3x 2x 6 x ( x 3) 2 ( x 3)
2 2
( x 3)( x 2 ) ( x 3) (2 3) 5
lim lim
x 2 ( x 2 )( x 2 ) x 2 (x 2) (2 2) 4
5
A ns:
4
Question No. 3:
x
f (x)
x 1
2
x 1 0
2
1
2
or, x
or, x 1 o r im a g in a r y n u m b e r
T h e r e f o r e w e c a n c o n c lu d e th a t th e a b o v e f u n c tio n h a v e n o d is c o n tin u ity .
Question No. 4:
x 2
f (x)
x 4
2
x 4 0
2
4
2
or, x
or, x 2
T h e r e f o r e w e c a n c o n c lu d e th a t th e a b o v e f u n c tio n h a v e d is c o n tin u ity w h e n x = + 2 o r -2 .
Question No. 5:
x 4
2
f (x)
x 2
T h e a b o v e f u n c tio n w ill b e c o n tin u o u s f o r a ll th e v a lu e s o f x e x c e p t w h e n ,
x 2 0
or, x 2
x 2
f (x)
x 5x 6
2
x 5x 6 0
2
or, x 2 x 3x 6 0
2
o r , ( x 2 )( x 3) 0
e ith e r , ( x 2 ) 0 o r ( x 3 ) 0
i .e x 2 , 3
Question No. 7:
f ( x ) { x 1; x > 1 }
f ( x ) { x; x 1}
b e c a u s e x > 1 a n d a ls o x 1,
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s a t p o in t x = 1
lim ( x 1) 2 a n d lim ( x ) 1
x1 x1
h e r e , lim ( x 1) lim ( x )
x1 x1
T h e re fo re w e c a n c o n c lu d e th a t th e fu n c tio n is d is c o n t in u o u s fo r x = 1
Question No. 8:
f ( x ) { x 1; x 1 }
f ( x ) {2; x < 1 }
b e c a u s e x 1 a n d a ls o x <1,
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s a t p o in t x = 1
lim ( x 1) 2 a n d lim ( 2 ) 2
x1 x1
h e r e , lim ( x 1) lim ( x )
x1 x1
f ( x ) { x 1; x }
2
f ( x ) { x 3; x < 2 }
b e c a u s e x a n d a ls o x < 2 ,
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s a t p o in t x = 2
lim ( x 1) 2 + 1 = 5 a n d lim ( x 3 ) 2 3 5
2 2
x 2 x 2
h e r e , lim ( x 1) lim ( x 3 )
2
x 2 x 2
T h e re fo re w e c a n c o n c lu d e th a t th e fu n c t io n h a v e n o d is c o n tin u ity .
x
f (x) { 1; x }
2
f ( x ) { x 2; x < 2 }
b e c a u s e x a n d a ls o x < 2 ,
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s a t p o in t x = 2
x 2
lim ( 1) ( 1) = 0 a n d lim ( x 2 ) 2 2 0
x 2 2 2 x 2
x
h e r e , lim ( 1) lim ( x 2 )
x 2 2 x 2
T h e re fo re w e c a n c o n c lu d e th a t th e fu n c t io n h a v e n o d is c o n tin u ity .
1 1
f (x) { x; 0< x< }
2 2
1 1
f (x) { ; x }
2 2
3 1
f (x) { x; <x<1}
2 2
1 1 1
because 0< x< , x a n d a ls o < x < 1,
2 2 2
1
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s a t p o in t x =
2
1 1 1
li m ( x) ( )=0,
1
x 2 2 2
2
1 1
li m ( ) and
1
x 2 2
2
3 3 1
li m ( x) 1
1
x 2 2 2
2
1 1 3
here, li m ( x ) li m ( ) li m ( x)
1 1 1
x 2 x 2 x 2
2 2 2
1
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e f u n c t i o n i s d i s c o n t i n u o s a t x
2
Additional Question 2:
f (x) {x ; 0<x<1}
2
f ( x ) { x ; 1 x < 2}
1
f (x) { x ; 2 x<3}
3
4
b e c a u s e 0 < x < 1 , 1 x < 2 a n d a ls o 2 x < 3 ,
1 1
li m ( x ) (1 ) = 1 , li m ( x ) 1 a n d li m ( x )
2 2 3
x 2 x 2 x 2 4
1
h e r e , li m ( x ) li m ( x ) li m (
2 3
x )
x 2 x 2 x 2 4
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e f u n c t i o n i s d i s c o n t i n u o s a t x 2
f ( x ) { x ; 0 < x < 1}
f ( x ) {2 x; 1 x 2 }
1
f (x) {x
2
x ; x > 2}
2
b e c a u s e 0 < x < 1 , 1 x 2 a n d a ls o x > 2 ,
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s
a t th e b re a k p o in t x = 1 a n d 2
li m ( x ) (1) = 1 , li m ( 2 x ) 2 1 1
x1 x1
1 1 1
a n d li m ( x x ) 1
2 2
1
x1 2 2 2
1
h e r e , li m ( x ) li m ( 2 x ) li m ( x
2
x )
x1 x1 x1 2
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e f u n c t i o n i s d i s c o n t i n u o u s a t x 1
li m ( x ) ( 2 ) = 2 , li m ( 2 x ) 2 2 0
x 2 x 2
1 1
a n d li m ( x x ) 2 0
2 2
2
x 2 2 2
1
h e r e , li m ( x ) li m ( 2 x ) li m ( x
2
x )
x1 x1 x1 2
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e f u n c t i o n i s d i s c o n t i n u o u s a t x 2
3
f ( x ) {3 2 x ; x < 0}
2
3
f ( x ) {3 2 x ; 0 x < }
2
3
f ( x ) { 3 2 x; x }
2
3 3 3
because x<0, 0 x< a n d a ls o x ,
2 2 2
w e n e e d to c h e c k if th e fu n c tio n is c o n t in u o u s o r d is c o n tin u o u s
3
a t th e b re a k p o in t x = 0 a n d
2
li m ( 3 2 x ) 3 , li m ( 3 2 x ) 3
x 0 x 0
a n d li m ( 3 2 x ) 3
x 0
h e r e , li m ( 3 2 x ) li m ( 3 2 x ) li m ( 3 2 x )
x 0 x 0 x 0
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e f u n c t i o n i s d i s c o n t i n u o u s a t x 0
li m ( 3 2 x ) 6 , li m ( 3 2 x ) 0
3 3
x x
2 2
a n d li m ( 3 2 x ) 6
3
x
2
h e r e , li m ( 3 2 x ) li m ( 3 2 x ) li m ( 3 2 x )
3 x v 3
x x
2 2
3
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e f u n c t i o n i s d i s c o n t i n u o s a t x
2
Apply the three steps of the delta method to determine derivatives of x for each of the
following. Then find the slope of the curve of f(x) for the stated value of x.
Question No. 1:
f (x) 3x 2
{3 ( x h ) 2} {3 x 2}
D e r iv a tiv e o f x = f ( x ) lim
h 0 h
3 x 3h 2 3 x 2 3h
lim lim lim 3 3
h 0 h h 0 h h 0
S lo p e a t x = 1 ; f (1) 3
Question No. 2:
f ( x ) 2 0 .5 x
{ 2 0 .5 ( x h ) } { 2 0 .5 x }
D e r iv a tiv e o f x = f ( x ) lim
h 0 h
2 0 .5 x 0 .5 h 2 0 .5 x 0 .5 h
lim lim lim ( 0 .5 ) 0 .5
h 0 h h 0 h h 0
S lo p e a t x = 1 ; f (1) 0 .5
Question No. 3:
f (x) x 2x 1
2
{( x h) 2 ( x h ) 1} { x 2 x 1}
2 2
D e r i v a t i v e o f x = f ( x ) li m
h 0 h
2 xh h 2 x 2h 1 x 2x 1 2 xh h 2h
2 2 2 2
x
li m li m
h 0 h h 0 h
h(2 x h 2)
li m li m ( 2 x h 2 ) 2 x 2
h 0 h h 0
S lo p e a t x = 1 ; f (1) 2 (1) 2 0
f (x) 3x 12 x 2
2
{3 ( x h ) 1 2 ( x h ) 2} {3 x 1 2 x 2}
2 2
D e r i v a t i v e o f x = f ( x ) li m
h 0 h
6 xh 3h 12 x 12h 2 3x 12 x 2 6 xh 3h 12h
2 2 2 2
3x
li m li m
h 0 h h 0 h
h (6 x 3h 1 2 )
li m li m ( 6 x 3 h 1 2 ) 6 x 1 2
h 0 h h 0
S lo p e a t x = 3 ; f ( 3 ) 6 ( 3 ) 1 2 6
Question No. 5:
1
f (x)
x
1 1
x h x
D e r i v a t i v e o f x = f ( x ) li m
h 0 h
x (x h) x x h
x(x h) x
2
hx
li m li m
h 0 h h 0 h
h 1 1 1 1
li m { . } li m
hx hx
2 2 2 2
h 0 x h h 0 x x x
1 1
S lo p e a t x = 2 ; f ( 2 ) 2
2 4
1
f (x) 2
x
1 1
(x h)
2 2
x
D e r i v a t i v e o f x = f ( x ) li m
h 0 h
(x h) (x 2 xh h )
2 2 2 2 2
x x
x (x h) 2 xh h )
2 2 2 2 2
x (x
li m li m
h 0 h h 0 h
x 2 xh h 2 xh h
2 2 2 2
x
2x h x h 2x h x h
4 3 2 2 4 3 2 2
x x
li m li m
h 0 h h 0 h
h(2 x h) 1 2 x h 2 x 2
li m { . } li m
2x h x h 2x h x h
4 3 2 2 4 3 2 2 4 3
h 0 x h h 0 x x x
2 2
S lo p e a t x = 1; f ( 1) 2
( 1) ( 1)
3
Question No. 7:
f (x) x 2 x
3
{ ( x h ) 2 ( x h )} { x 2 x }
3 3
lim lim
h 0 h h 0 h
h (3 x 3 x h h 2 )
2 2
lim lim (3 x 3 x h h 2 ) 3 x 2
2 2 2
h 0 h h 0
S lo p e a t x = 2 ; f ( 2 ) 3 ( 2 ) 2 1 4
2
f (x) x
3
(x h) x
3 3
lim lim
h 0 h h 0 h
h (3 x 3 x h h )
2 2
lim lim (3 x 3 x h h ) 3 x
2 2 2
h 0 h h 0
f (x) e
x
(xh)
e
x
e
D e riv a tiv e o f x = f ( x ) lim
h 0 h
e .e e e ( e 1) ( e 1)
x h x x h h
h 0 h h 0 h h 0 h
2 3
1 x x x
e lim { ( e 1)} ; [N o te : e {1 ..............
x h x
h 0 h 1
2 3
1 h h h
e lim {1 ............ .. 1}
x
h 0 h 1
2 3
1 h h h
e lim { .............. }
x
h 0 h 1
2
1 1 h h
e lim .............. }
x
{h (
h 0 h 1
2
h h
e lim {1 .............. }
x
h 0
e
x
f (x) a
x
(xh)
a
x
a
D e riv a tiv e o f x = f ( x ) lim
h 0 h
a .a a a ( a 1) ( a 1)
x h x x h h
h 0 h h 0 h h 0 h
h
a
lo g e
(e 1) a
lo g e
h
h lo g e
e
a lim a a a ]
x h .1 h
; [N o te : e
h 0 h
a
h lo g e
1)
2 3
(e x x x
a lim ; [N o te : e {1 ... ...........
x x
h 0 h 1
2 2 3 3
1 h lo g a h (lo g a ) h (lo g a )
a lim {1 .............. 1}
x
h 0 h 1
2 2 3 3
1 h lo g a h (lo g a ) h (lo g a )
a lim { .............. }
x
h 0 h 1
2 2 3
1 lo g a h (lo g a ) h (lo g a )
a lim ............. } ]
x
[ h{
h 0 h 1
2 2 3
h (lo g a ) h (lo g a )
a lim { lo g a ............. }
x
h 0
a lo g a
x
f ( x ) lo g e x
lo g ( x h ) lo g x
D e riv a tiv e o f x = f ( x ) lim
h 0 h
1 xh
lim . lo g
h 0 h x
1 h 1 1 1
lim . lo g (1 ); [N o te : lo g (1 x ) x x x x .......... ]
2 3 4
h 0 h x 2 3 4
1 h 1 h 2 1 h 3 1 h 4
lim .{ ( ) ( ) ( ) ..........
h 0 h x 2 x 3 x 4 x
2 3
1 1 1 h 1 h 1 h
lim .h { 2
3
4
..........
h 0 h x 2 x 3 x 4 x
2 3
1 1 h 1 h 1 h
lim { 2
3
4
..........
h 0 x 2 x 3 x 4 x
1
x
f ( x ) lo g a lo g a . lo g e x
x e
d
D e riv a tiv e o f x = f ( x )
e
(lo g a . lo g e x )
dx
d
lo g a
e
(lo g e x )
dx
1
e
lo g a
x
F in d f ( x ). D o n o t le a v e n e g a tiv e e x p o n e n ts in a n s w e rs .
Question No. 1:
f (x) 2 k
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [2 k ]
dx dx
d d
(2) (k ) 0
dx dx
Question No. 2:
f (x) x
d d
D e riv a tiv e o f f(x ) = f ( x ) [ f ( x )] [ x] 1
dx dx
Question No. 3:
f (x) x / 2
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [ x / 2]
dx dx
d 1 1 d 1 1
[ .x ] [x] .1
dx 2 2 dx 2 2
Question No. 4:
f (x) 2 x 3
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [2 x 3]
dx dx
d d d
(2 x) (3) 2 (x) 0 2
dx dx dx
f (x) x / 3 4
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [ x / 3 4]
dx dx
d x d 1 d 1 1
( ) (4) (x) 0 .1
dx 3 dx 3 dx 3 3
Question No. 6:
f ( x ) 2 / 3 3( x / 2 ) 2 / 3 3 x / 2
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [2 / 3 3 x / 2]
dx dx
d d d 3 3 d 3
(2 / 3) (3 x / 2 ) 0 ( x) (x)
dx dx dx 2 2 dx 2
Question No. 7:
f (x) 3x 2 x 5
2
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [3 x 2 x 5 ]
2
dx dx
d d d d d
(3 x ) (2 x) (5 ) 3 (x ) 2 ( x) 0
2 2
dx dx dx dx dx
2 1
3(2 x ) 2 (1) 6 x 2
Question No. 8:
3 2
x x
f (x) x 12
3 2
3 2
d d x x
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [ x 12]
dx dx 3 2
3 2
d x d x d d
( ) ( ) (x) (1 2 )
dx 3 dx 2 dx dx
1 d 1 d
(x ) (x ) 1 0
3 2
3 dx 2 dx
1 3 1 1 2 1
) )1 x x 1
2
(3 .x ( 2 .x
3 2
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 18
Question No. 12:
f (x) ax bx c
2
d d
D e r iv a tiv e o f f ( x ) = f ( x ) [ f ( x )] [ax bx c]
2
dx dx
d d d
(ax ) (b x )
2
(c )
dx dx dx
d d
a (x ) b (x) 0
2
dx dx
2 1
a ( 2 .x ) b 2ax b
d
(1 0 y 4 x 7 )
2
dy
d d d
(1 0 y ) (4 x)
2
(7 )
dy dy dy
d d
10 (y ) 4 ( x) 0 10(2 y ) 0 0 20 y
2
dy dy
d
(3 p w 2 p )
2 3
dx
d d
(3 p w )
2 3
(2 p )
dx dx
0 0 0
d a
3m 5a )
2 3
(
dm m
d a d d d 1 d
) (3 m ) (5 a ) a )3 (m ) 0
2 3 2
( (
dm m dm dm dm m dm
d 1 11 2 a
a (m ) 3 ( 2 m ) a ( 1m ) 6m am 6m 2
6m
dm m
f (x) 3
d d
S lo p e f ( x ) [ f ( x )] [3] 0
dx dx
S lo p e a t x = 1 ; f (1) 0
f (x) 3x 2 x 5
2
d d
S lo p e f ( x ) [ f ( x )] [3 x 2 x 5 ]
2
dx dx
d d d
(3 x ) (2 x) (5 ) 3 ( 2 x ) 2 (1) 0 6 x 2
2
dx dx dx
S lo p e a t x = 0 .5 ; f ( 0 .5 ) 6 ( 0 .5 ) 2 1
f (x) 3x 2 x 5
2
d d
S lo p e f ( x ) [ f ( x )] [3 x 2 x 5 ]
2
dx dx
d d d
(3 x ) (2 x) (5 ) 3 ( 2 x ) 2 (1) 0 6 x 2
2
dx dx dx
S lo p e a t x = 0 .5 ; f ( 0 .5 ) 6 ( 0 .5 ) 2 1
f (x) 8x x
1/3
d d
S lo p e f ( x ) [ f ( x )] x]
1/3
[8 x
dx dx
1 2
d d 1 1 8 8 1 8 1
) ( x) 8( )1 1 1 1
1/3 3 3
(8 x x x 2
3 2
dx dx 3 3 3 3 x
x3
8 1 8 1 8 1
S lo p e a t x = 8 ; f (8 ) 2
1 2
1 2
1
3 3 3 3 3.
(8 ) 3 (2 ) 3 2 3
8 1 8 1 2 5
2
1 1 1
3 2 3 4 3 3
f (x) 10 3x 3x
2
d d
S lo p e f ( x ) [ f ( x )] [1 0 3 x 3 x ]
2
dx dx
d d d
(1 0 ) (3 x ) ( 3 x ) 0 3 ( 2 x ) 3 (1) 6 x 3
2
dx dx dx
S lo p e 0
or, 6 x 3 0
or, 6 x 3
or, x 1 / 2
S lo p e w ill b e 0 w h e n x = 1 /2
f (x) 3x 4 x; x> 0
1/3
d d
S lo p e f ( x ) [ f ( x )] 4 x]
1/3
[3 x
dx dx
1 2
d d 1 1 1
) (4 x ) 3( ) 4 (1) x 4 4
1/3
(3 x x3 3
2
dx dx 3
x3
S lo p e 0
1
or, 2
4 0
x3
1
or, 2
4
x3
2
1
or, x 3
4
2
.3 1
(
3 3
or, x )
4
1
2
or, x
64
1
or, x
8
a s x > 0 , h e n c e s lo p e is 0 w h e n x = 1 /8
C(y) = 0.001y2+2y+500, Find the marginal cost at outputs of a) 1,000 yards b)2,000 yards
d d
M a r g in a l C o s t C ( y ) [C ( y )] [ 0 .0 0 1 y 2 y 5 0 0 ]
2
dy dy
d d d
( 0 .0 0 1 y ) (2 y ) ( 5 0 0 ) 0 .0 0 1( 2 y ) 2 (1) 0 0 .0 0 2 y 2
2
dy dy dy
a ) M a r g in a l C o s t a t o u tp u ts = 1 0 0 0 y a r d s
C (1 0 0 0 ) 0 .0 0 2 (1 0 0 0 ) 2 $ 4 p e r y a r d
b ) M a r g in a l C o s t a t o u t p u ts = 2 0 0 0 y a r d s
C ( 2 0 0 0 ) 0 .0 0 2 ( 2 0 0 0 ) 2 $ 6 p e r y a r d
Question No. 41: If the total cost of producing t tons of Tonal is,
C(t) = 0.0005t3-0.3t2+100t+30,000,
Find the marginal cost at outputs of a) 100 tons b)200 tons
d d
M a r g in a l C o s t C ( t ) [C (t )] [ 0 .0 0 0 5 t 0 .3 t 1 0 0 t 3 0 0 0 0 ]
3 2
dt dt
d d d d
( 0 .0 0 0 5 t ) ( 0 .3 t ) (1 0 0 t )
3 2
(3 0 0 0 0 )
dt dt dt dt
0 .0 0 0 5 ( 3 t ) 0 .3 ( 2 t ) 1 0 0 (1) 0 0 .0 0 1 5 t 0 .6 t 1 0 0
2 2
a ) M a r g in a l C o s t a t o u tp u ts = 1 0 0 to n s
C (1 0 0 ) 0 .0 0 1 5 (1 0 0 ) 0 .6 (1 0 0 ) 1 0 0 $ 5 5 p e r to n
2
b ) M a r g in a l C o s t a t o u tp u ts = 2 0 0 to n s
C ( 2 0 0 ) 0 .0 0 1 5 ( 2 0 0 ) 0 .6 ( 2 0 0 ) 1 0 0 $ 4 0 p e r to n
2
F in d f ( x ). D o n o t le a v e n e g a tiv e e x p o n e n ts in a n s w e rs .
Question No. 1:
f ( x ) (6 x 5)
5
d d 5 1 d
f ( x ) [ f ( x )] [(6 x 5 ) ] 5 (6 x 5 ) (6 x 5)
5
dx dx dx
d d
5(6 x 5) [ (6 x )
4
(5 )]
dx dx
d
5(6 x 5) [6 ( x ) 0 ] 5(6 x 5) [6 ] 3 0 (6 x 5)
4 4 4
dx
Question No. 2:
f ( x) (2 x 6)
5
d d 5 1 d
f ( x ) [ f ( x )] [( 2 x 6 ) ] 5 ( 2 x 6 ) (2 x 6)
5
dx dx dx
d d
5(2 x 6) [ (2 x)
4
(6 )]
dx dx
5(2 x 6) [2] 10(2 x 6)
4 4
Question No. 3:
f ( x) (2 x)
3
d d 3 1 d
f ( x ) [ f ( x )] [( 2 x ) ] 3( 2 x )
3
(2 x)
dx dx dx
3(2 x ) (2 ) 2 4 x
2 2
1
3
f ( x ) (6 x )
1 1
d d 1 1 d
f ( x )
3 3
[ f ( x )] [(6 x ) ] 3
(6 x ) (6 x )
dx dx dx
2
1 1 2
3
3
(6 x ) (6 ) 2 2
3 2
3 (6 x )
(6 x )
Question No. 5:
f ( x) (4 x) 2
1 1
d d 1 1 d
f ( x ) [ f ( x )] [( 4 x ) 2 ] (4 x) 2 (4 x)
dx dx 2 dx
1
1 1 2 2 1
(4 x) 2
(4) 2 1
2 (4 x) 2 x x
(4 x) 2
Question No. 6:
f ( x ) (9 x ) 3
4 4
d d 4 1 d
f ( x ) [ f ( x )] [(9 x ) ] 3
(9 x ) 3 (9 x )
dx dx 3 dx
4 1
4 1
(9 x ) 3
(9 ) 1 2 (9 x ) 3
3
Question No. 7:
3
f ( x ) (8 x 3 ) 2
3 3
d d 3 1 d
f ( x ) [ f ( x )] [(8 x 3 ) ] 2
(8 x 3 ) 2 (8 x 3 )
dx dx 2 dx
3 1 1
3 1 d d 3
(8 x 3 ) 2
{ (8 x ) (3 )} (8 x 3 ) (8 ) 1 2 (8 x 3 ) 2 1 2 8 x 3
2
2 dx dx 2
f ( x ) (1 2 x 9 ) 3
5 5
d d 5 1 d
f ( x ) [ f ( x )] [ (1 2 x 9 ) 3 ] (1 2 x 9 ) 3 (1 2 x 9 )
dx dx 3 dx
2 2
5
(1 2 x 9 ) 3 (1 2 ) 2 0 (1 2 x 9 ) 3 2 0 (1 2 x 9 )
3 2
Question No. 9:
f ( x ) (3 x 6 x 2 ) 2
2
5
d d
f ( x ) [ f ( x )] [(3 x 6 x 2 ) 2 ]
2
dx dx
5
5 1 d
(3 x 6 x 2 ) 2 (3 x 6 x 2 )
2 2
2 dx
3 3
5 5
(3 x 6 x 2 ) 2 (6 x 6 ) ( 3 x 6 x 2 ) 2 6 ( x 1)
2 2
2 2
3
1 5 ( x 1) ( 3 x 6 x 2 ) 2 1 5 ( x 1) (3 x 6 x 2 )
2 2 3
f (x) (x 3x 6 x)3
3 2
4
d d
f ( x ) [ f ( x )] [( x 3 x 6 x ) 3 ]
3 2
dx dx
4
4 1 d
(x 3x 6 x)3 (x 3x 6 x)
3 2 3 2
3 dx
1
4
( x 3 x 6 x ) 3 (3 x 6 x 6 )
3 2 2
3
1 1
4
( x 3 x 6 x ) 3( x 2 x 2 ) 4 ( x 2 x 2 )( x 3 x 6 x ) 3
3 2 3 2 2 3 2
f ( x ) (2 x 3) 2
1
d d
f ( x ) [ f ( x )] [( 2 x 3) 2 ]
dx dx
1
1 1 d
(2 x 3) 2 (2 x 3)
2 dx
1 1
1 1 1
(2 x 3) 2
(2 ) (2 x 3) 2
1
2 (2 x 3)
(2 x 3) 2
f ( x ) (3 x 5 ) 3
2
2
d d
f ( x ) [ f ( x )] [(3 x 5 ) 3 ]
2
dx dx
2
2 1 d
(3 x 5 ) 3 (3 x 5 )
2 2
3 dx
1 1
2 4x
(3 x 5 ) (6 x ) 4 x (3 x 5 )
2 3 2 3
1
3
(3 x 5 ) 3
2
A n o th e r M e th o d
d d
(2 x 3) (4) 4 (2 x 3)
d 4 dx dx
f ( x ) ( )
2x 3 (2 x 3)
2
dx
( 2 x 3)(0 ) 4 ( 2 ) 8
(2 x 3) (2 x 3)
2 2
6 9
Question No. 14: f ( x ) Question No. 17: f ( x )
(3 x 5 )
2
3x 5
12
Question No. 18: f ( x )
(2 x 10)
3
x
d 1 1 2 1 d 1
f ( x ) 2) ] 2( 2) 2)
2
[( (
dx x x dx x
1 d 1 1 11 1 2
2( 2) (x 2) 2( 2 )( x 0) 2( 2 )( x )
x dx x x
1 2 1 1
2( 2 )( x ) 2 2
( 2)
x x x
30
5
(3 x 2 )
2
5
Question No. 20: f ( x ) 0 .1 x
5 0 .2 x
1
f (x) 3x 1
Question No. 21:
(5 2 x ) 2
1
f (x) 1
2x
Question No. 22: 2
(3 x 7 )
d 18 d d 18
g ( x ) [1 0 x ] (1 0 x ) { }
(5 2 x ) (5 2 x )
1/ 2 1/ 2
dx dx dx
1 1
d d
(5 2 x ) 2 (1 8 ) 1 8 { (5 2 x ) 2 }
dx dx
10 1
{ (5 2 x ) 2 }
2
1
1 1 d
0 18 (5 2 x ) 2 (5 2 x )
2 dx
10
(5 2 x )
1
1
18. (5 2 x ) 2
(2)
10 2
(5 2 x )
18 1 18
10 1
10 3
(5 2 x )
(5 2 x ) 2
(5 2 x ) 2
18
g ( x ) 1 0 3
(5 2 x ) 2
2
18 18 3 .2
g ( 2 ) 1 0 3
10 3
10 3
(5 4 ) 2 2 2
(9 ) (3 ) 2
2
3 .2 2 28
10 3
10
3 3 3
4
Question No. 24: F i n d h ( 3 ) i f h ( x ) 7 x
1)
2 1/3
(x
F in d f ( x ). D o n o t le a v e n e g a tiv e e x p o n e n ts in a n s w e rs .
Question No. 1:
f ( x ) (3 x 2 )( 2 x 5 )
d d d
f ( x ) [(3 x 2 )( 2 x 5 )] (3 x 2 ) (2 x 5) (2 x 5) (3 x 2 )
dx dx dx
(3 x 2 )( 2 ) ( 2 x 5 )(3) 6 x 4 6 x 1 5 1 2 x 1 1
Question No. 2:
f ( x ) (7 x 3)( 4 3 x )
d d d
f ( x ) [(7 x 3)( 4 3 x )] (7 x 3) (4 3 x) (4 3 x) (7 x 3)
dx dx dx
(7 x 3)( 3) ( 4 3 x )(7 ) 2 1 x 9 2 8 2 1 x 1 9 4 2 x
Question No. 3:
f ( x ) ( x 2 )(3 x 5 )
2
d d d
f ( x ) [( x 2 )(3 x 5 )] ( x 2 ) (3 x 5 ) (3 x 5 ) ( x 2)
2 2 2
dx dx dx
( x 2 )(3 ) (3 x 5 )( 2 x ) 3 x 6 6 x 1 0 x 9 x 1 0 x 6
2 2 2 2
Question No. 4:
f ( x ) (3 x )(5 x 6 )
2
d d d
f ( x ) [(3 x )(5 x 6 )] (3 x ) (5 x 6 ) (5 x 6 ) (3 x )
2 2 2
dx dx dx
(3 x )(5 ) (5 x 6 )( 2 x ) 1 5 5 x 1 0 x 1 2 x 3 (5 x 4 x 5 )
2 2 2 2
f ( x ) x ( x 1)
4
d d d
f ( x ) [ x ( x 1) ] x ( x 1) ( x 1)
4 4 4
(x)
dx dx dx
d
4 x ( x 1) ( x 1) ( x 1) (1)
3 4
dx
4 x ( x 1) ( x 1) ( x 1) ( 4 x x 1) ( x 1) ( 5 x 1)
3 4 3 3
3 2
Question No.9:
f ( x ) 2 x (3 x 7 ) 3
2
1 1 1
d d d
f ( x ) [ 2 x (3 x 7 ) 3 ] 2 x (3 x 7 ) 3 (3 x 7 ) 3
2 2 2
(2 x)
dx dx dx
1 1
1 1 d
2 x{ (3 x 7 ) 3 (3 x 7 ) (3 x 7 ) 3 ( 2 )
2 2 2
3 dx
1 1
2 1
x{ ( 3 x 7 ) 3 (6 x )} 2 (3 x 7 ) 3
2 2
3
1 1
2 1
x (6 x ){ (3 x 7 ) (3 x 7 ) } 2 (3 x 7 ) 3
2 3 2 2
3
1
1 1
(3 x 7 ) 3
2 2
2x
4x { } 2 (3 x 7 ) 2 (3 x 7 ) { 1}
2 2 3 2 3
(3 x 7 ) (3 x 7 )
2 2
1 1
2x 3x 7 5x 7
2 2 2
2 (3 x 7 ) { } 2 (3 x 7 ) {
2 3 2 3
}
(3 x 7 ) (3 x 7 )
2 2
1 1
1
1
2 (5 x 7 )(3 x 7 ) 3 (3 x 7 ) 2 (5 x 7 )(3 x 7 ) 3
2 2 2 2 2
2
2 (5 x 7 )
2
2 (5 x 7 )(3 x 7 )
2 2 3
2
(3 x 7 ) 3
2
x
f (x)
x 1
d d
( x 1) (x) x ( x 1)
d x dx dx
f ( x ) [ ]
dx x 1 ( x 1)
2
x 2
f (x)
x 1
d d
( x 1) ( x 2) ( x 2) ( x 1)
d x 2 dx dx
f ( x ) [ ]
x 1 ( x 1)
2
dx
( x 1) (1) ( x 2 ) (1) x 1 x 2 3
( x 1) ( x 1) ( x 1)
2 2 2
2
x
Do these at your home: Question No. 13: f ( x )
2x 3
3
x x
Question No. 14: f ( x ) Question No. 15: f ( x )
3x 5 3 2x
2
3x
Question No. 16: f ( x )
1 2x
2
x
f (x) 1
(3 x 2 ) 2
1 1
d d
(3 x 2 ) 2 (x) (x) (3 x 2 ) 2
d x dx dx
f ( x ) [ 1
] 1
dx
(3 x 2 ) 2 { (3 x 2 ) 2 }
2
1 1
1 1 d
( 3 x 2 ) (1) ( x )
2
(3 x 2 ) 2 (3 x 2 )
2 dx
(3 x 2 )
1
3x
1
x
1
(3 x 2 ) 2 1
(3 x 2 ) 2 (3 x 2 ) 2
(3)
2 2 (3 x 2 ) 2
(3 x 2 ) (3 x 2 )
2 (3 x 2 ) 3 x
1
2 (3 x 2 ) 2 6x 4 3x 3x 4 3x 4
1
1
3
(3 x 2 ) 1
2 (3 x 2 ) (3 x 2 )
2
2 (3 x 2 ) 2
2 (3 x 2 ) 2
2x
f (x) 1
(2 x 3) 2
1 1
d d
(2 x 3) 2 (2 x) (2 x) (2 x 3) 2
d 2x dx dx
f ( x ) [ 1
] 1
dx
(2 x 3) 2 { (2 x 3) 2 }
2
1 1
1 1 d
(2 x 3) (2 ) (2 x )
2
(2 x 3) 2 (2 x 3)
2 dx
(2 x 3)
1
1
1 1
2 (2 x 3) 2 2 x 1
2 (2 x 3) 2
x (2 x 3) 2
(2) (2 x 3) 2
(2 x 3) (2 x 3)
2 (2 x 3) 2 x 4x 6 2x 2x 6
1 1 1
(2 x 3) 2
(2 x 3) 2
(2 x 3) 2 2 ( x 3)
1
(2 x 3) (2 x 3) (2 x 3)
( 2 x 3)( 2 x 3) 2
2 ( x 3)
3
(2 x 3) 2
2x
L et Y = 1
(2 x 3) 2
2x
o r lo g Y lo g { 1
} ; [ ta k in g lo g in b o th s id e ]
(2 x 3) 2
1
o r lo g Y lo g ( 2 x ) lo g { ( 2 x 3 ) 2 }
1
o r lo g Y lo g ( 2 x ) lo g ( 2 x 3 )
2
1 dy 1 d 1 1 d
or (2 x) (2 x 3)
Y dx 2 x dx 2 (2 x 3) d x
1 dy 1 1 1
or (2) (2)
Y dx 2x 2 (2 x 3)
1 dy 1 1
or
Y dx x (2 x 3)
dy 2x 3 x
or Y( )
dx x (2 x 3)
d 2x 2x x3
or ( 1
) 1
( )
dx x (2 x 3)
(2 x 3) 2 (2 x 3) 2
d 2x 2 ( x 3)
or ( 1
) 1
dx
(2 x 3) 2 ( 2 x 3)( 2 x 3) 2
d 2x 2 ( x 3)
or ( 1
) 3
dx
(2 x 3) 2 (2 x 3) 2
2x 1 3 5x
Do these: Question No. 19: f ( x ) 20: f ( x )
( x 5) (x 2)
2 1/3 3 1/3
f (x)
(2 x 3) (5 x 1)
1/ 2 1/5
( 4 x 1)
1/ 4
Let Y =
(2 x 3) (5 x 1)
1/ 2 1/5
( 4 x 1)
1/ 4
o r lo g Y lo g { } ; [ta k in g lo g in b o th s id e ]
(2 x 3) (5 x 1)
1/ 2 1/5
o r lo g Y lo g ( 4 x 1) lo g { ( 2 x 3 ) (5 x 1) }
1/ 4 1/ 2 1/5
o r lo g Y lo g ( 4 x 1) lo g ( 2 x 3 ) lo g (5 x 1)
1/ 4 1/ 2 1/5
1 1 1
o r lo g Y lo g ( 4 x 1) lo g ( 2 x 3 ) lo g (5 x 1)
4 2 5
1 dy 1 1 d 1 1 d 1 1 d
or ( 4 x 1) (2 x 3) (5 x 1)
Y dx 4 ( 4 x 1) d x 2 (2 x 3) d x 5 (5 x 1) d x
1 dy 1 1 1 1 1 1
or (4) (2) (5 )
Y dx 4 ( 4 x 1) 2 (2 x 3) 5 (5 x 1)
1 dy 1 1 1
or
Y dx ( 4 x 1) (2 x 3) (5 x 1)
dy 1 1 1
or Y{ }
dx ( 4 x 1) (2 x 3) (5 x 1)
( 4 x 1) 10 x 13x 3 20 x x 1 8 x 14 x 3
1/ 4 2 2 2
dy
or { }
(2 x 3) (5 x 1) ( 4 x 1)( 2 x 3 )(5 x 1)
1/ 2 1/5
dx
( 4 x 1) 18 x 2 x 5
1/ 4 2
dy
or { }
(2 x 3) (5 x 1) ( 4 x 1)( 2 x 3 )(5 x 1)
1/ 2 1/5
dx
(1 8 x 2 x 5 )
2
dy
or
(2 x 3) (5 x 1) ( 4 x 1)
3/2 6 /5 3/4
dx
( 4 x 1) (1 8 x 2 x 5 )
1/ 4 2
d
i .e . { }
d x ( 2 x 3 ) (5 x 1) ( 2 x 3 ) (5 x 1) ( 4 x 1)
1/ 2 1/5 3/2 6 /5 3/4
f ( x) ( x 3 x 5) 3
3 2
Q .1)
1 1
d 1 1 d
f ( x ) [( x 3 x 5 ) ] ( x 3 x 5) ( x 3 x 5)
3 2 3 3 2 3 3 2
dx 3 dx
2
1 d d d
( x 3 x 5) (x ) 3 (x )
3 2 3 3 2
{ (5 )}
3 dx dx dx
1 1
{3 x 3 .2 x 0}
2
. 2
3
( x 3 x 5) 3
3 2
1 1
.3 ( x 2 x )
2
. 2
3
( x 3 x 5) 3
3 2
(x 2 x)
2
2
( x 3 x 5) 3
3 2
1
Q .2 ) f (x)
4 (8 x 6 )
d 1 1 d 1
f ( x ) [ ] { }
d x 4 (8 x 6 ) 4 d x (8 x 6 )
1 d 1 1 11 d
(8 x 6 ) ( 1) (8 x 6 ) (8 x 6 )
4 dx 4 dx
1 2 2
(8 x 6 ) (8 )
(8 x 6 )
2
4
2 7 (1 0 3 x ) 2
3
d 2 2 d
f ( x ) [ 3
] { (1 0 3 x ) 2
}
dx 27 dx
2 7 (1 0 3 x ) 2
3
2 3 1 d
( ) (1 0 3 x ) 2
(1 0 3 x )
27 2 dx
5
1 1 1
(1 0 3 x ) 2
( 3) . 5
9 3
(1 0 3 x ) 2
1
(1 0 3 x )
5
3
1
Q .4 ) f (x) x 1
( 5 0 .3 x ) 3
d 1 d d 1
f ( x ) [x 1
] (x) { 1
}
dx dx dx
( 5 0 .3 x ) 3 ( 5 0 .3 x ) 3
1 1
d d 1 1 d
(x) ( 5 0 .3 x ) 3
1 ( ) ( 5 0 .3 x ) 3
( 5 0 .3 x )
dx dx 3 dx
4
1 0 .3 1
1 ( 5 0 .3 x ) 3
( 0 .3 ) 1 . 4
3 3
( 5 0 .3 x ) 3
1
1
( 5 0 .3 x )
3 4
10
f ( x) 2 x( x 5 x) 2
3
Q .5 )
1 1
d d
f ( x ) 5 x) ] 2 5 x) 2 ]
3 2 3
[2 x( x [x(x
dx dx
1 1
d d
2[ x 5 x) (x 5 x)2
3 2 3
(x ( x )]
dx dx
1 1
1 1 d
2[ x . 5 x) 5 x) (x 5 x ) 2 .1]
3 2 3 3
(x (x
2 dx
1 1
x
2[ 5x) 5) ( x 5 x) 2 ]
3 2 2 3
(x (3 x
2
1 1
5) 5x
2 3
(3 x 3x
x 2(x 5x) 2(x 5x)2
3 2 3
1 1
5x)2 5 x)2
3 3
(x (x
5 x 2(x 5x) 5x 2x 10 x
3 3 3 3
3x 3x
1
1
5x) 5x)2
3 2 3
(x (x
15 x 3x)
3 3
5x 5( x
1
1
5x) 5x)2
3 2 3
(x (x
2x 1
Q .6 ) f (x)
(2 x 3)
1/ 2
1 1
d d
(2 x 3) 2
( 2 x 1) ( 2 x 1) (2 x 3) 2
d 2x 1 dx dx
f ( x ) [ ] 1
(2 x 3)
1/ 2
dx
{ (2 x 3) 2 }
2
1 1
1 1 d
( 2 x 3 ) ( 2 ) ( 2 x 1) .
2
.( 2 x 3 ) 2 (2 x 3)
2 dx
(2 x 3)
1
( 2 x 1)
1
1
1
2 (2 x 3) 2 1
2 (2 x 3) 2 ( 2 x 1) ( 2 x 3 ) 2
(2)
2 (2 x 3) 2
(2 x 3) (2 x 3)
2 ( 2 x 3 ) ( 2 x 1)
1
(2 x 3) 2 4x 6 2x 1 2x 7 2x 7
1
3
(2 x 3) (2 x 3)
3
(2 x 3) (2 x 3) 2
(2 x 3) 2
0 .3 x 6
Q .8 ) f ( x) 10e
d 0 .3 x 6 d 0 .3 x 6
f ( x ) [1 0 e ] 10 (e )
dx dx
0 .3 x 6 d 0 .3 x 6 0 .3 x 6
10e ( 0 .3 x 6 ) 1 0 e ( 0 .3 ) 3 e
dx
0 .3 x d
f ( x ) ( 0 .4 ) (a ) a
x x
Q .9 ) ; [ ln a ]
dx
d 0 .3 x 0 .3 x d
f ( x ) [ ( 0 .4 ) ] ( 0 .4 ) . ln ( 0 .4 ) ( 0 .3 x )
dx dx
0 .3 x 0 .3 x
( 0 .4 ) . ln ( 0 .4 ) ( 0 .3 ) 0 .2 7 4 9 ( 0 .4 )
x d
f ( x ) 5 0 0 (1 .0 8 ) ( a ) a ln a ]
x x
Q .1 0 ) ; [
dx
d x d x x d
f ( x ) [ 5 0 0 (1 .0 8 ) ] 500 [ (1 .0 8 ) ] 5 0 0 .(1 .0 8 ) . ln (1 .0 8 ) ( x)
dx dx dx
x x
5 0 0 .(1 .0 8 ) . ln (1 .0 8 ) ( 1) 3 8 .4 8 (1 .0 8 )
1 d 1
f ( x ) ln ( 2 x 5 ) ln ( 2 x 5 ); [ ( ln x )
1/3
Q .1 1) = ]
3 dx x
d 1 1 1 d
f ( x ) [ ln ( 2 x 5 ) ] . (2 x 5)
dx 3 3 (2 x 5) dx
1 1 2
. (2)
3 (2 x 5) 3(2 x 5)
d 1
f ( x ) ln ( 2 x 6 x ); [ ( ln x )
3
Q .1 2 ) ]
dx x
d 1 d
f ( x ) [ ln ( 2 x 6 x ) ] (2 x 6 x)
3 3
(2 x 6 x) dx
3
dx
1)
2
1 1 3( x
6) 1)
2 2
(6 x .6 ( x
3) 3) 3)
2 2 2
2 x(x 2 x(x x(x
f ( x, y) 3 x 2 xy y 4
2 2
Q .1 4 )
fx [ f ( x , y )] 2 xy y 4] 6 x 2 y
2 2
[3 x
x x
f xx ( fx ) (6 x 2 y ) 6
x x
fy [ f ( x , y )] 2 xy y 4] 2 x 2 y
2 2
[3 x
y y
f yy ( fy) (2 x 2 y ) 2
y y
f xy ( f )] 2 xy y 4 )] (6 x 2 y ) 2
2 2
[ [ (3 x
y x y x y
1
1 1 y
fx [ f ( x , y )] 3x y] 2 y 3 y. 2y
1/ 2 1/3 1/ 2 1/ 2
[2 xy x3
x x
2
3
x3
2
y 2 1 2y
f xx ( fx ) ) y .(
1/ 2 3
(2 y )x
x x
2 5
3
3
x 3x3
1 1 x
fy [ f ( x , y )] 3x y ] 2 x. 3x 3x
1/ 2 1/3 1/3 1/3
[2 xy .
y y
1 1
2 2 2
y y
x 1 1 x
f yy ( fy) 3x ) x(
1/3
( )
y y
1 3 3
2
2 2 2
y y 2y
f x y F ir s t w ith r e s p e c t to x th e n w ith r e s p e c t to y
y
f xy ( f )] 3x y )]
1/ 2 1/3 1/ 2
[ [ (2 xy (2 y )
y x y x y
2
x3
1 1 1 1 1
2 .( ). 1
2
1
2
2 2 3 2
y x y x3
For each of the following find the coordinates of all local and endpoint optimum (maximum or
minimum) points, and all stationary inflection points.
Question No. 1:
f (x) 5x x
2
d d d
f ( x ) [5 x x ] (5 x ) (x ) 5 2x
2 2
dx dx dx
A t s ta tio n a r y p o in t f ( x ) 0
i .e .5 2 x 0
or, x 5 / 2
5 5 25 25 50 25 25
If x 5 / 2 th e n y = f ( 5 / 2 ) 5 ( )(
2
)
2 2 2 4 4 4
5 25
T h e r e is o n ly o n e s ta tio n a r y p o in t ( , ) o r ( 2 .5 , 6 . 2 5 )
2 4
If x 2 th e n f ( 2 ) 5 2 ( 2 ) 1 , ( + v e )
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 3 th e n f ( 3 ) 5 2 ( 3 ) 1 , ( v e )
T h e f u n c tio n is d e c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 2 .5 , 6 .2 5 ) is a
lo c a l m a x im u m a n d a s w e h a v e o n ly o n e s t a tio n a r y p o in t, th e r e is n o
m in im a o r s ta tio n a r y in f le c tio n p o in t.
Question No. 2:
f (x) 2 x 12 x 20
2
d d d d
f ( x ) [2 x 12 x 20] 2 (x ) 12 ( x) (20) 4 x 12
2 2
dx dx dx dx
A t s t a t i o n a r y p o i n t f ( x ) 0
i .e .4 x 1 2 0
or, x 3
T h e r e is o n ly o n e s ta tio n a r y p o in t ( 3 , 2 )
If x 2 th e n f ( 2 ) 4 ( 2 ) 1 2 4 , ( v e )
T h e f u n c tio n is d e c r e a s in g b e f o r e th e p o in t
If x 4 th e n f ( 4 ) 4 ( 4 ) 1 2 4 , ( v e )
T h e f u n c tio n is in c r e a s in g a f te r th e p o in t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 3 , 2 ) is a
lo c a l m in im u m a n d a s w e h a v e o n ly o n e s t a tio n a r y p o in t, th e r e is n o
m a x im a o r s ta tio n a r y in f le c tio n p o in t .
Question No. 5:
f (x) 30 x 3x 10
2
d d d d
f ( x ) [3 0 x 3 x 1 0 ] (3 0 x ) (3 x ) (1 0 ) 3 0 6 x
2 2
dx dx dx dx
A t s ta tio n a r y p o in t f ( x ) 0
i .e .3 0 6 x 0
or, x 5
If x 5 th e n y = f ( 5 ) 3 0 ( 5 ) 3 ( 5 ) 1 0 1 5 0 7 5 1 0 8 5
2
T h e r e is o n ly o n e s ta tio n a r y p o in t ( 5 , 8 5 )
If x 4 th e n f ( 4 ) 3 0 6 ( 4 ) 6 , ( v e )
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 6 th e n f ( 6 ) 3 0 6 ( 6 ) 6 , ( v e )
T h e f u n c tio n is d e c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 5 , 8 5 ) is a
lo c a l m a x im u m a n d a s w e h a v e o n ly o n e s t a tio n a r y p o in t, th e r e is n o
m in im a o r s ta tio n a r y in f le c tio n p o in t.
Question No. 7:
f (x) x 12 x 12
3 2
d d d d
f ( x ) [x 12 x 12] (x ) 12 (x ) (1 2 ) 3 x 24 x
3 2 3 2 2
dx dx dx dx
A t s ta tio n a r y p o in t f ( x ) 0
24 x 0
2
i .e .3 x
or , 3 x( x 8) 0
or , x( x 8) 0
E ith e r , x 0 o r, ( x 8 ) 0
i .e x 0 , 8
If x 0 th e n y = f ( 0 ) ( 0 ) 1 2 ( 0 ) 1 2 1 2
3 2
If x 8 th e n y = f (8 ) (8 ) 1 2 (8 ) 1 2 2 4 4
3 2
T h e r e a r e tw o s ta tio n a r y p o in ts ( 0 , 1 2 ) a n d ( 8 , 2 4 4 )
F ir s t le t u s c h e c k s ta tio n a r y p o in t ( 0 , 1 2 )
If x 1 th e n f ( 1) 3 ( 1) 2 4 ( 1) 2 7 , ( v e )
2
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
T h e f u n c tio n is d e c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 0 , 1 2 ) is a
lo c a l m a x im u m
N o w le t u s c h e c k s ta tio n a r y p o in t ( 8 , 2 4 4 )
If x 7 th e n f ( 7 ) 3 ( 7 ) 2 4 ( 7 ) 2 1 , ( v e )
2
T h e f u n c tio n is d e c r e a s in g b e f o r e th e p o in t
If x 9 th e n f ( 9 ) 3 ( 9 ) 2 4 ( 9 ) 2 7 , ( v e )
2
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta tio n a r y p o in t ( 8 , 2 4 4 ) is a
lo c a l m in im u m a n d a s th e r e is n o o th e r s ta tio n a r y p o in t,
th e r e f o r e th e r e is n o s ta tio n a r y in f le c t io n p o in t.
Do it at home: Q. No. 8: f ( x ) x 3 x 2
3 2
d d d
f ( x ) [3 x 2 7 ] 3 (x ) (27 ) 9 x
3 3 2
dx dx dx
A t s ta tio n a r y p o in t f ( x ) 0
0
2
i .e .9 x
or, x 0
If x 0 th e n y = f ( 0 ) 3 ( 0 ) 2 7 2 7
3
T h e r e is o n e s ta tio n a r y p o in t ( 0 , 2 7 )
If x 1 th e n f ( 1) 9 ( 1) = 9 , ( v e )
2
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 1 th e n f (1) 9 (1) = 9 , ( v e )
2
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 0 , 2 7 ) is a
th e r e f o r e th e r e is n o m in im a o r m a x im a .
d d d
f ( x ) [1 4 2 x ] (1 4 ) 2 (x ) 6 x
3 3 2
dx dx dx
A t s ta tio n a r y p o in t f ( x ) 0
i .e . 6 x 0
2
or, x 0
If x 0 th e n y = f ( 0 ) 1 4 2 ( 0 ) 1 4
3
T h e r e is o n e s ta tio n a r y p o in t ( 0 , 1 4 )
If x 1 th e n f ( 1) 6 ( 1) = 6 , ( v e )
2
T h e f u n c tio n is d e c r e a s in g b e f o r e th e p o in t
If x 1 th e n f (1) 6 (1) = 6 , ( v e )
2
T h e f u n c tio n is d e c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 0 , 1 4 ) is a
s ta tio n a r y in f le c ti o n p o in t a n d a s th e r e is n o o th e r s ta tio n a r y p o in t,
th e r e f o r e th e r e is n o m in im a o r m a x im a .
f (x) 9 x 3 2 x
2 2 2 1
d d d 2 1
f ( x ) [9 x 3
2 x] 9 (x ) 23
( x) 9. (x 3
) 2 6x 3
2
dx dx dx 3
A t s ta tio n a r y p o in t f ( x ) 0
1
i .e .6 x 3
2 0
6
or, 1
2
x3
1
6
or, x3
2
1
or, x 3 3
1
or, (x 3 ) 3
3 3
;[ ta k in g p o w e r 3 in b o th s id e ]
or, x 27
2 2
If x 2 7 th e n y = f ( 2 7 ) 9 ( 2 7 ) 3 2 ( 2 7 ) 9 ( 3 ) 3 5 4
3
9 (3 ) 5 4 2 7
2
T h e r e is o n e s ta tio n a r y p o in t ( 2 7 , 2 7 )
1
If x 2 6 th e n f ( 2 6 ) 6 ( 2 6 ) 3
2 0 .0 2 5 , ( v e )
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
1
If x 2 8 th e n f ( 2 8 ) 6 ( 2 8 ) 3
2 0 .0 2 4 , ( v e )
T h e f u n c tio n is d e c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 2 7 , 2 7 ) is a
lo c a l m a x im u m a n d a s th e r e is n o o th e r s ta tio n a r y p o in t,
th e r e f o r e th e r e is n o m in im a a n d s ta tio n a r y in f le c tio n p o in t.
1 2
64
Q. No. 16: f ( x ) 1 0 x x Q. No. 17: f ( x ) 4 x
3 3
x
250
Q. No. 18: f ( x ) 4 x 2
x
f (x) x 9 x 27 x
3 2
;[ -1 ,6 ]
T h e f u n c tio n is r e s tr ic te d to a ll v a lu e s o f x
b e tw e e n -1 to 6 a n d in c lu s iv e .
d d d d
f ( x ) [x 9 x 27 x] (x ) 9 (x ) 27
3 2 3 2
(x)
dx dx dx dx
3x 18 x 27
2
A t s ta tio n a r y p o in t f ( x ) 0
i .e .3 x 1 8 x 2 7 0
2
o r , 3( x 6 x 9 ) 0
2
o r , x 2 . x .3 3 0
2 2
o r , ( x 3) 0
2
or, x 3
If x 3 th e n y = f ( 3 ) 3 9 ( 3 ) 2 7 ( 3 ) 2 7
3 2
T h e r e is o n e s ta tio n a r y p o in t ( 3 , 2 7 )
If x 2 th e n f ( 2 ) 3 ( 2 ) 1 8 ( 2 ) 2 7 3 , ( v e )
2
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 4 th e n f ( 4 ) 3 ( 4 ) 1 8 ( 4 ) 2 7 3 ( v e )
2
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 3 , 2 7 ) is a
s t a tio n a r y in f le c tio n p o in t.
T h e le f t h a n d e n d p o in t: x 1,
y = f ( 1) ( 1) 9 ( 1) 2 7 ( 1) 3 7
3 2
T h e le f t h a n d e n d p o in t is ( 1, 3 7 )
If x 0 .5 th e n f ( 0 .5 ) 3 ( 0 .5 ) 1 8 ( 0 .5 ) 2 7 3 5 .2 5 , ( v e )
2
T h e f u n c tio n is in c r e a s in g a f te r th e p o in t
T h e r e f o r e w e c a n c o n c lu d e th a t th e le f t h a n d e n d p o in t ( 1, 3 7 )
is a n e n d p o in t m in im u m .
T h e r ig h t h a n d e n d p o in t: x 6 ,
y= f (6 ) (6 ) 9 (6 ) 2 7 (6 ) 5 4
3 2
T h e r ig h t h a n d e n d p o in t is ( 6 , 5 4 )
If x 5 th e n f ( 5 ) 3 ( 5 ) 1 8 ( 5 ) 2 7 1 2 , ( v e )
2
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
T h e r e f o r e w e c a n c o n c lu d e th a t th e r ig h t h a n d e n d p o in t ( 6 , 5 4 )
is a n e n d p o in t m a x im u m .
A t s t a t i o n a r y p o i n t f ( x ) 0
30 x 75 0
2
i .e .3 x
10 x 25) 0
2
o r , 3( x
2 . x .5 5 0
2 2
or, x
or , ( x 5) 0
2
or, x 5
T h e r e is o n e s ta tio n a r y p o in t ( 5 , 1 2 5 )
If x 6 th e n f ( 6 ) 3 ( 6 ) 3 0 ( 6 ) 7 5 3 , ( v e )
2
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 4 th e n f ( 4 ) 3 ( 4 ) 3 0 ( 4 ) 7 5 3 ( v e )
2
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 5 , 1 2 5 ) is a
s ta tio n a r y in f le c tio n p o in t.
E n d p o in t A n a ly s is :
T h e le f t h a n d e n d p o in t: x 8 ,
y= f ( 8) ( 8) 1 5( 8) 7 5( 8) 1 5 2
3 2
T h e le f t h a n d e n d p o in t is ( 8 , 1 5 2 )
If x 7 th e n f ( 7 ) 3 ( 7 ) 3 0 ( 7 ) 7 5 1 2 , ( v e )
2
T h e f u n c tio n is in c r e a s in g a f te r th e p o in t
T h e r e f o r e w e c a n c o n c lu d e th a t th e le f t h a n d e n d p o in t ( 8 , 1 5 2 )
is a n e n d p o in t m in im u m .
T h e r ig h t h a n d e n d p o in t: x 2 ,
y= f (2 ) (2 ) 1 5(2 ) 7 5(2 ) 2 1 8
3 2
T h e r ig h t h a n d e n d p o in t is ( 2 , 2 1 8 )
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
T h e r e f o r e w e c a n c o n c lu d e th a t th e r ig h t h a n d e n d p o in t ( 2 , 2 1 8 )
is a n e n d p o in t m a x im u m .
Q. No. 22: f ( x ) 1 0 8 x x ; [ 1 , 5 ]
4
T h e f u n c t i o n i s r e s t r i c t e d t o a ll v a lu e s o f x
b e t w e e n 1 t o 2 , i n c lu d i n g 1 b u t e x c lu d i n g 2 .
d d d d
f ( x ) 3x 4] 4 (x ) 3 (x )
3 4 3 4
[4 x (4)
dx dx dx dx
12 x 12 x
2 3
A t s t a t i o n a r y p o i n t f ( x ) 0
12 x 0
2 3
i .e .1 2 x
o r , 1 2 x (1 x ) 0
2
o r , x (1 x ) 0
2
E ith e r , x 0 o r ,1 x 0
or, x 1
If x 0 th e n y = f ( 0 ) 4 ( 0 ) 3 ( 0 ) 4 4
3 4
T h e r e a r e tw o s ta tio n a r y p o in ts ( 0 , 4 ) a n d (1, 5 )
F ir s t le t u s c h e c k s ta tio n a r y p o in t ( 0 , 4 )
If x 0 .5 th e n f ( 0 .5 ) 1 2 ( 0 .5 ) 1 2 ( 0 .5 ) 4 .5 , ( v e )
2 3
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 0 .5 th e n f ( 0 .5 ) 1 2 ( 0 .5 ) 1 2 ( 0 .5 ) 1 .5 , ( v e )
2 3
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 0 , 4 ) is a
s ta tio n a r y in f le c tio n p o in t.
N o w le t u s c h e c k s ta tio n a r y p o in t (1, 5 )
If x 0 .5 th e n f ( 0 .5 ) 1 2 ( 0 .5 ) 1 2 ( 0 .5 ) 1 .5 , ( v e )
2 3
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
If x 1 .5 th e n f (1 .5 ) 1 2 (1 .5 ) 1 2 (1 .5 ) 1 3 .5 , ( v e )
2 3
T h e f u n c tio n is d e c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t (1, 5 ) is a
lo c a l m a x im u m .
T h e le f t h a n d e n d p o in t: x 1,
y = f ( 1) 4 ( 1) 3 ( 1) 4 3
3 4
T h e le f t h a n d e n d p o in t is ( 1, 3 )
If x 0 .5 th e n f ( 0 .5 ) 1 2 ( 0 .5 ) 1 2 ( 0 .5 ) 4 .5 , ( v e )
2 3
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e le f t h a n d e n d p o in t ( 1, 3 )
is a n e n d p o in t m in im u m .
Question No. 25: When x gallons of antifreeze are produced, the average cost per gallon is
100
A(x) where, A ( x ) 0 .0 4 x 1
x
a) How many gallons should be produced if average cost per gallon is to be minimized?
100
A(x) 0 .0 4 x 1
x
W e n e e d to fin d th e m in im u m p o in t (s ta tio n a ry p o in t)
to fin d o u t th e m in im u m a v e ra g e c o s t
d 100 d 1 d d
A ( x ) [ 0 . 0 4 x 1] 1 0 0 ( ) 0 .0 4 ( x) (1)
dx x dx x dx dx
1
100 2
0 .0 4
x
A t s t a t i o n a r y p o i n t A ( x ) 0
1
i .e . 1 0 0 2
0 .0 4 0
x
1
o r ,1 0 0 2
0 .0 4
x
100
2
o r , 0 .0 4 x
100
2500
2
or, x
0 .0 4
o r , x 5 0 g a llo n
When 50 gallons of antifreeze are produced, the average cost per gallon will be minimized.
W e f in d th e s ta tio n a r y p o in t w h e r e x 5 0
1
If x 4 9 th e n A ( 4 9 ) 1 0 0 2
0 .0 4 0 .0 0 1, ( v e )
(49)
T h e f u n c tio n is d e c r e a s in g b e f o r e th e p o in t
1
If x 5 1 th e n A ( 5 1) 1 0 0 2
0 .0 4 0 .0 0 1, ( v e )
( 5 1)
T h e f u n c tio n is in c r e a s in g a f te r th e p o in t
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t w h e r e x 5 0 g a llo n
m a k e s th e a v e r a g e c o s t m in im u m .
W h e n x 5 0 g a llo n , th e m in im u m a v e ra g e c o s t p e r g a llo n
100
A (5 0 ) 0 .0 4 (5 0 ) 1 $ 5 p e r g a llo n
50
Question No. 26: If we use 100 linear feet of fence to enclose a rectangular plot of land, we
need 2x feet for one pair of sides ( or x feet for one of these sides), leaving (100-2x) feet for
the other pair of sides (or (50-x) feet for one of these sides. The rectangular is then x feet
by (50-x) feet and its area, A(x) is, A ( x ) x (5 0 x ) 5 0 x x
2
W e n e e d to fin d th e m a x im u m p o in t (s ta ti o n a ry p o in t)
to fin d o u t th e m a x im u m a re a
d d d 50-x
A ( x ) [5 0 x x ] 50 (x)
2 2
(x )
dx dx dx
x x
50 2 x
A t s t a t i o n a r y p o i n t A ( x ) 0 50-x
i .e . 5 0 2 x 0
o r , x 2 5 fe e t
If x 2 4 th e n A ( 2 4 ) 5 0 2 ( 2 4 ) 2 , ( v e )
T h e fu n c tio n is in c re a s in g b e fo re th e p o in t
If x 2 6 th e n A ( 2 6 ) 5 0 2 ( 2 6 ) 2 , ( v e )
T h e fu n c tio n is d e c re a s in g a fte r th e p o i n t
T h e re fo re w e c a n c o n c lu d e th a t th e s ta ti o n a ry p o in t w h e re x 2 5 fe e t
m a k e s th e a re a m a x im u m .
W h e n x 2 5 f e e t, th e a r e a w ill b e
A ( 2 5 ) 2 5 ( 5 0 2 5 ) 6 2 5 s q u a r e -f e e t
Question No. 27: In many sample surveys only a small number n of a large population of
people are interviewed. Published state results state what proportion, p, of the n people
interviewed answered yes to a particular question. Inherently, because only a fraction of
the population is interviewed, the proportion p is expected to be in error by V(p), where
2
p p
V stands for variance, and V ( p )
n n
a) Find the value of p that maximizes V(p).
2
p p
V ( p)
n n
W e n e e d to fin d th e m a x im u m p o in t (s ta ti o n a ry p o in t)
to fin d o u t th e m a x im u m e rro r
2
d p p 1 d 1 d 1 2 p
V ( p ) ] ( p) )
2
[ ( p
dp n n n dp n dp n n
A t s t a t i o n a r y p o i n t V ( p ) 0
1 2 p 2 p 1
i .e . 0 or,
n n n n
or, 2 p 1 or, p 1 / 2
2
0 .1 0 .1
V ( 0 .1) 0 .0 0 9
10 10
Question No. 28: The profit realized when y gallons of distilled water are made and sold is
P ( y ) 2 0 y 0 .0 0 5 y
2
W e n e e d to fin d th e m a x im u m p o in t (s ta ti o n a ry p o in t)
to fin d o u t th e m a x im u m p ro fit
d d d
P ( y ) [ 2 0 y 0 .0 0 5 y ] 2 0 ( y ) 0 .0 0 5
2 2
(y )
dy dy dy
2 0 0 .0 1 y
A t s t a t i o n a r y p o i n t P ( y ) 0
i .e . 2 0 0 . 0 1 y 0 o r , 0 .0 1 y 2 0
20
or, y = 2 0 0 0 g a llo n s
0 .0 1
P ( 2 0 0 0 ) 2 0 ( 2 0 0 0 ) 0 .0 0 5 ( 2 0 0 0 ) $20, 000
2
Question No. 1:
f (x) x 2 x x 3
5 4 3
d 5 1 4 1 3 1
f ( x ) [ x 2 x x 3] 5 x 2 .4 x 3x 5x 8x 3x
5 4 3 4 3 2
dx
d d
f ( x ) [ f ( x )] (5 x 8 x 3 x ) 2 0 x 2 4 x 6 x
4 3 2 3 2
dx dx
d d
f ( x ) [ f ( x )] (20 x 24 x 6 x) 60 x 48 x 6
3 2 2
dx dx
Q.4: f ( x ) x x 3 x 7 Q.5: f ( x ) 3 x 5 x 2 x
6 4 2 4 3 2
3x 4 x 2
Q.9: f ( x ) Q.10: f ( x )
x3 x2
f (x) x 4x 3
2
d d
f ( x ) 4 x 3] 2 x 4; f ( x ) [2 x 4 ] 2;
2
[x
dx dx
d
f ( x ) [2] 0
dx
O p t i m u m A n a ly s i s :
A t s t a t i o n a r y p o i n t f ( x ) 0
i .e .2 x 4 0
or, x 2
T h e r e is o n ly o n e s ta tio n a r y p o in t ( 2 , 1)
f ( 2 ) 2 ; [ + v e , i.e . c o n c a v e u p
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 2 , 1) is a
lo c a l m in im u m .
In f le c tio n P o in t A n a ly s is :
f ( x ) 0
or, 2 0
i .e . n o in f le c tio n p o in t
Question No. 12:
f (x) x 10 x 9
2
d d
f ( x ) 1 0 x 9 ] 2 x 1 0; f ( x ) [2 x 1 0 ] 2;
2
[x
dx dx
d
f ( x ) [2] 0
dx
O p t i m u m A n a ly s i s :
A t s t a t i o n a r y p o i n t f ( x ) 0
i .e .2 x 1 0 0
or, x 5
If x 5 th e n y = f ( 5 ) ( 5 ) 1 0 ( 5 ) 9 3 4
2
T h e r e is o n ly o n e s ta tio n a r y p o in t ( 5 , 3 4 )
f ( 5 ) 2 ; [ + v e , i.e . c o n c a v e u p
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 5 , 3 4 ) is a
lo c a l m in im u m .
In f le c tio n P o in t A n a ly s is :
f ( x ) 0
or, 2 0
i .e . n o in f le c tio n p o in t
f (x) x 6x 9x 1
3 2
d
f ( x ) 6x 9 x 1] 3 x 12 x 9
3 2 2
[x
dx
d
f ( x ) 1 2 x 9 ] 6 x 1 2;
2
[3 x
dx
d
f ( x ) [6 x 1 2 ] 6
dx
O p t i m u m A n a ly s i s :
A t s t a t i o n a r y p o i n t f ( x ) 0
12 x 9 0
2
i .e .3 x
4 x 3) 0
2
o r , 3( x
3x x 3 0
2
or, x
o r , ( x 3 ) ( x 1) 0
o r , x 3,1
If x 3 t h e n y = f ( 3 ) ( 3 ) 6 (3) 9 (3) 1 1
3 2
T h e r e a r e t w o s t a t i o n a r y p o i n t s ( 3 , 1) a n d (1, 5 )
L e t u s c h e c k p o i n t ( 3 , 1) f i r s t ,
f ( 3 ) 6 ( 3 ) 1 2 6 ; [ + v e , i .e . c o n c a v e u p ]
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e s t a t i o n a r y p o i n t ( 3 , 1) i s a
lo c a l m i n i m u m .
L e t u s c h e c k p o i n t (1, 5 ) n o w ,
f (1) 6 (1) 1 2 6 ; [ v e , i .e . c o n c a v e d o w n ]
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e s t a t i o n a r y p o i n t (1, 5 ) i s a
lo c a l m a x i m u m .
In f le c t i o n P o i n t A n a ly s i s :
f ( x ) 0
or, 6 x 12 0
or, x 2
T h e n , f ( 2 ) 6 0 ; w e h a v e a n i n f le c t i o n p o i n t a t x 2
If x 2 t h e n y = f ( 2 ) ( 2 ) 6 ( 2 ) 9(2) 1 3
3 2
i .e . w e h a v e i n f le c t i o n p o i n t a t ( 2 , 3 )
f (x) x 9x
3
d
f ( x ) 9 x] 3x 9
3 2
[x
dx
d
f ( x ) 9] 6 x;
2
[3 x
dx
d
f ( x ) [6 x ] 6
dx
O p t i m u m A n a ly s i s :
A t s t a t i o n a r y p o i n t f ( x ) 0
9 0
2
i .e .3 x
3) 0
2
o r , 3( x
3 0
2
or, x
3
2
or, x
or, x 3 im a g in a ry o r u n re a l n o .
T h e re is n o s ta tio n a ry p o in t a n d h e n c e n o o p tim a .
In f le c t i o n P o i n t A n a ly s i s :
f ( x ) 0
or, 6 x 0
or, x 0
T h e n , f ( 0 ) 6 0 ; w e h a v e a n i n f le c t i o n p o i n t a t x 0
If x 0 t h e n y = f ( 2 ) ( 0 ) 9 ( 0 ) 0
3
i .e . w e h a v e i n f le c t i o n p o i n t a t ( 0 , 0 )
f (x) x 2x 4x 3
3 2
d
f ( x ) 2x 4 x 3] 3 x 4x 4
3 2 2
[x
dx
d
f ( x ) 4 x 4 ] 6 x 4;
2
[3 x
dx
d
f ( x ) [6 x 4 ] 6
dx
O p t i m u m A n a ly s i s :
A t s t a t i o n a r y p o i n t f ( x ) 0
4x 4 0
2
i .e .3 x
6x 2x 4 0
2
or,3x
o r , ( x 2 )(3 x 2 ) 0
2
or , x 2,
3
If x 2 t h e n y = f ( 2 ) ( 2 ) 2(2) 4(2) 3 5
3 2
2 2 2 2 2
If x th e n y = f ( ) ( 2( 4( ) 3 4 .4 8
3 2
) )
3 3 3 3 3
T h e r e a r e t w o s t a t i o n a r y p o i n t s ( 2 , 5 ) a n d ( 0 .6 7 , 4 .4 8 )
L e t u s c h e c k p o in t ( 2 , 5 ) firs t,
f ( 2 ) 6 ( 2 ) 4 8 ; [ + v e , i .e . c o n c a v e u p ]
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e s t a t i o n a r y p o i n t ( 2 , 5 ) i s a
lo c a l m i n i m u m .
L e t u s c h e c k p o i n t ( 0 .6 7 , 4 .4 8 ) n o w ,
f ( 0 .6 7 ) 6 ( 0 .6 7 ) 4 8 .0 2 ; [ v e , i .e . c o n c a v e d o w n ]
T h e r e f o r e w e c a n c o n c lu d e t h a t t h e s t a t i o n a r y p o i n t ( 0 . 6 7 , 4 .4 8 ) i s a
lo c a l m a x i m u m .
In f le c t i o n P o i n t A n a ly s i s :
f ( x ) 0
or, 6 x 4 0
o r , x 0 .6 7
T h e n , f ( 0 .6 7 ) 6 0 ; w e h a v e a n i n f le c t i o n p o i n t a t x 0 .6 7
If x 0 .6 7 t h e n y = f ( 0 .6 7 ) ( 0 .6 7 ) 2 ( 0 .6 7 ) 4 ( 0 .6 7 ) 3 0 .2 7 7
3 2
i .e . w e h a v e i n f le c t i o n p o i n t a t ( 0 .6 7 , 0 .2 7 7 )
Q.19 f ( x ) 0 .1( x 1 0 ) 2 5 .6 x 3 4 0 .8
4
d
f ( x ) 8x 18 x 27] 4 x 24 x 36 x
4 3 2 3 2
[x
dx
d
f ( x ) 24 x 36 x] 12 x 4 8 x 3 6;
3 2 2
[4 x
dx
d
f ( x ) 48 x 36] 24 x 48
2
[1 2 x
dx
O p t i m u m A n a ly s i s :
A t s t a t i o n a r y p o i n t f ( x ) 0
24 x 36 x 0
3 2
i .e .4 x
6 x 9) 0
2
or, 4 x(x
2 . x .3 3 ) 0
2 2
or, x(x
o r , x ( x 3) 0
2
or , x 0, 3
If x 0 th e n y = f ( 0 ) ( 0 ) 8 ( 0 ) 1 8 ( 0 ) 2 7 2 7
4 3 2
If x 3 th e n y = f ( 3 ) ( 3 ) 8 ( 3 ) 1 8 ( 3 ) 2 7 0
4 3 2
T h e r e a r e tw o s ta tio n a r y p o in ts ( 0 , 2 7 ) a n d ( 3 , 0 )
L e t u s c h e c k p o in t ( 0 , 2 7 ) f ir s t,
f ( 0 ) 1 2 ( 0 ) 4 8 ( 0 ) 3 6 3 6 ; [ + v e , i .e . c o n c a v e u p ]
2
T h e r e f o r e w e c a n c o n c lu d e th a t th e s ta ti o n a r y p o in t ( 0 , 2 7 ) is a
lo c a l m in im u m .
L e t u s c h e c k p o in t ( 3 , 0 ) n o w ,
f ( 3 ) 1 2 ( 3 ) 4 8 ( 3 ) 3 6 0 ; [ te s t f a ile d ]
2
W h e n x 2 th e n f ( 2 ) 4 ( 2 ) 2 4 ( 2 ) 3 6 ( 2 ) 8 ; [ + v e ]
3 2
T h e f u n c tio n is in c r e a s in g b e f o r e th e p o in t
W h e n x 4 th e n f ( 4 ) 4 ( 4 ) 2 4 ( 4 ) 3 6 ( 4 ) 1 6 ; [ + v e ]
3 2
T h e f u n c tio n is in c r e a s in g a f te r th e p o i n t
T h e r e f o r e w e c a n c o n c lu d e th a t th e p o in t ( 3 , 0 ) is a
s ta t io n a r y in f le c tio n p o in t.
f ( x ) 0
48 x 36 0
2
o r ,1 2 x
4 x 3) 0
2
o r ,1 2 ( x
3x x 3 0
2
or, x
o r , ( x 3 ) ( x 1) 0
o r , x 3,1
T h e n , f ( 3 ) 2 4 ( 3 ) 4 8 2 4 0 ; w e h a v e a n i n f le c t i o n p o i n t a t x 3
i .e . w e h a v e s t a t i o n a r y i n f le c t i o n p o i n t a t ( 3 , 0 ) a n d
n o n -s t a t i o n a r y i n f le c t i o n p o i n t a t (1, 1 6 )
Answer: Let, length of East-West sides are x foot each and that of North-South sides are y foot
each. To fence the perimeter (2x+2y) of the plot we have $1,500.
2 x ($ 1 0 ) 2 y ($ 5 ) $ 1 5 0 0
or, 20 x 10 y 1500
1500 20 x
or, y
10
1500 20 x 1500 x 20 x
2
A r e a o f t h e r e c t a n g u la r p lo t A ( x ) = x y x .
10 10
F o r th e a re a to b e m a x im u m ,
A ( x ) = 0
1500 x 20 x
2
d
or, ( ) 0 North (y)
dx 10
1 d
(1 5 0 0 x 2 0 x ) 0
2
or, .
10 dx West East
1
or, (1 5 0 0 4 0 x ) 0 (x) (x)
10
o r ,1 5 0 0 4 0 x 0
1500 20 x
T h e re fo r e th e m a x im u m a re a x y x.
10
1 5 0 0 2 0 ( 3 7 .5 )
( 3 7 .5 ) 2 8 1 2 .5 s q .f o o t
10
Answer:
A r e a o f th e m a n u f a c tu r in g p la n t x y 1 6 , 8 7 5 s q f e e t
16875
or, y
x
A r e a o f th e to ta l p lo t A ( x ) x 80 y 60 = xy 80 y 60 x 4 800
16875 1350000
16875 80. 60 x 4800 21675 60 x
x x
F o r th e a r e a to b e m in im u m ,
A ( x ) = 0
d 1350000
or, (21675 60 x) 0
dx x
1350000 y
30ft
or, 2
60 0 +
x 60
x ft
1350000 20
or, 2
60 ft y
x
y 60ft
1350000
2
or, x
60 x
22500
2
or, x 30ft
(x+80)ft
o r , x 1 5 0 fo o t
If A (1 5 0 ) > 0 , th e n th e v a lu e o f x w ill m a k e th e a r e a m in im u m
d 1350000 1 2700000
A ( x ) ( 2
60) 1350000(2) 3
3
dx x x x
2700000
A (1 5 0 ) 3
0 .8 ; [+ v e , c o n c a v e u p ]
(1 5 0 )
T h e r e f o r e th e m in im u m to ta l la n d a r e a
1350000
21675 6 0 (1 5 0 ) 3 9 , 6 7 5 s q -f t
150
If the work level (labour hours) is raised over 800, management estimates that average
output per labour-hour falls off at the rate of 2.5 units for each for each extra 100 labour
hours or by 0.025 units for each labour hour in excess of 800. What will be the
appropriate labour hour (x) that would maximize output?
Ans:
T o ta l o u tp u t w h e n x 8 0 0 ;
P ( x ) x [ 3 0 ( x 8 0 0 ) 0 .0 2 5 ] x ( 3 0 0 .0 2 5 x 2 0 ) 5 0 x 0 .0 2 5 x
2
F o r th e o u tp u t to b e m a x im u m ,
P ( x ) = 0
d
( 5 0 x 0 .0 2 5 x ) 0
2
or,
dx
o r , 5 0 0 .0 5 x 0
o r , 0 .0 5 x 5 0
50
or, x 1 0 0 0 u n its
0 .0 5
d
P ( x ) ( 5 0 0 .0 5 x ) 0 .0 5
dx
P (1 0 0 0 ) 0 .0 5 ; [ ve, concave dow n]
A s P (1 0 0 0 ) < 0 , th e n th e v a lu e o f x w ill m a k e th e o u tp u t m a x im u m
T h e r e f o r e th e m a x im u m o u tp u t w ill b e
P (1 0 0 0 ) 5 0 (1 0 0 0 ) 0 .0 2 5 (1 0 0 0 ) 2 5 , 0 0 0 u n its
2
T o ta l g r o u p c h a r g e w h e n x 1 0 ;
C ( x ) x [ 5 0 ( x 1 0 ) 0 .5 0 ] x ( 5 0 0 .5 0 x 5 ) 5 5 x 0 .5 0 x
2
F o r th e g r o u p c h a r g e to b e m a x im u m ,
C ( x ) = 0
d
( 5 5 x 0 .5 0 x ) 0
2
or,
dx
or,55 x 0
o r , x 5 5 e m p lo y e e s
d
C ( x ) (5 5 x ) 1
dx
C ( 5 5 ) 1; [ ve, concave dow n]
A s C ( 5 5 ) < 0 , th e n th e v a lu e o f x w ill m a k e th e g r o u p c h a r g e m a x im u m
T h e r e f o r e th e m a x im u m to ta l g r o u p c h a r g e w ill b e
C ( 5 5 ) 5 5 ( 5 5 ) 0 .5 0 ( 5 5 ) $ 1 5 1 2 .5 f o r 5 5 e m p lo y e e s o r m o r e
2
Question 5: When State College charges $195 for continuing education class in the uses of
microcomputers, it attracts 125 students. For each $10 decrease in the charge, an
additional 8 students will attend the class. Find the tuition value State College should
charge to maximize revenue and then find this maximum revenue.
x T u i t i o n v a lu e c h a r g e d b y S t a t e C o lle g e ; w h e n x 1 9 5
195 x 195 x
R ( x ) x [1 2 5 (8 ) ] x [1 2 5 ( 4 )]
10 5
625 780 4 x 1405 x 4 x
2
x( )
5 5
F o r th e re v e n u e to b e m a x im u m ,
R ( x ) = 0
1405 x 4 x
2
d
or, ( ) 0
dx 5
1
or, (1 4 0 5 8 x ) 0
5
o r ,1 4 0 5 8 x 0
1405
or, x $ 1 7 5 .6 2 5
8
w ill m a k e th e r e v e n u e m a x im u m
T h e r e f o r e th e m a x im u m r e v e n u e w ill b e
1 4 0 5 (1 7 5 .6 2 5 ) 4 (1 7 5 .6 2 5 )
2
R (1 7 5 .6 2 5 ) $ 2 4 , 6 7 5 .3 1
5
Question 6: When x gallons of alcohol are produced, the average cost per gallon is A(x)
dollars, where,
200
A(x) 0 .0 5 x ; x 0
0 .1 x 5
20
( 0 .1 x 5 )
2
or,
0 .0 5
o r , ( 0 .1 x 5 ) 4 0 0
2
o r , ( 0 .1 x 5 ) 2 0
E ith e r , or,
( 0 .1 x 5 ) 2 0 ( 0 .1 x 5 ) 2 0
15 25
or, x 150 or, x 250
0 .1 0 .1
x g a llo n s c a n n o t b e n e g a tiv e , h e n c e x = 1 5 0 g a llo n s
4
A (1 5 0 ) 0 .0 0 0 5 ; [ + v e , c o n c a v e u p ]
{ 0 .1(1 5 0 ) 5 )
3
T h e v a lu e o f x 1 5 0 g a llo n s o c c u r s a t lo c a l m in im u m o f A ( x )
c)
200
A (1 5 0 ) 0 .0 5 (1 5 0 ) $ 1 7 .5 p e r g a llo n
0 .1(1 5 0 ) 5
F o r th e p r o f it to b e m a x im u m ,
P ( x ) = 0
1
d
or, { ( 3 0 .6 x ) 2 0 .1 x } 0
dx
1
d d
or, { ( 3 0 .6 x ) 2 } ( 0 .1 x ) 0
dx dx
1
1 1 d
or, ( 3 0 .6 x ) 2 ( 3 0 .6 x ) 0 .1 0
2 dx
1
1
or, ( 3 0 .6 x ) 2
( 0 .6 ) 0 .1 0
2
0 .3
or, 1
0 .1
( 3 0 .6 x ) 2
1
0 .3 0
or, ( 3 0 .6 x ) 2
0 .1
1
o r , ( 3 0 .6 x ) 2 3
o r , { ( 3 0 .6 x ) 2 } (3)
2 2
o r , 3 0 .6 x 9
9 3
or, x 1 0 m i le s
0 .6
1 1
d 1 1 d
P ( x ) { 0 .3 ( 3 0 .6 x ) 2
0 .1} 0 .3 ( ) ( 3 0 .6 x ) 2
( 3 0 .6 x )
dx 2 dx
3
0 .0 9
0 .1 5 ( 3 0 .6 x ) 2
( 0 .6 ) 3
( 3 0 .6 x ) 2
0 .0 9
P (1 0 ) 3
; [ ve, concave dow n ]
{3 0 .6 (1 0 ) } 2
T h e r e f o r e x 1 0 m i le s m a k e s t h e p r o f i t m a x i m u m a n d
1
t h e m a x i m u m n e t p r o f i t , P (1 0 ) {3 0 .6 (1 0 ) } 2 0 . 1(1 0 )
2 (1 0 0 ) $ 2 0 0 p e r w e e k
Question 8: When y gallons of crude oil are produced the average cost per barrel is A(y),
where,
2500
A( y) + 0 .1 6 y
0 .0 4 y 9
a) Find the value of y that minimizes average cost per barrel.
F o r th e a v e r a g e c o s t to b e m in im u m ,
A ( y ) = 0
d 2500
or, { + 0 .1 6 y } 0
dy 0 .0 4 y 9
d 1 d
or, { 2 5 0 0 ( 0 .0 4 y 9 ) } ( 0 .1 6 y ) 0
dy dy
11 d
o r , 2 5 0 0 ( 1) ( 0 .0 4 y 9 ) ( 0 .0 4 y 9 ) 0 .1 6 0
dy
2
o r , 2 5 0 0 ( 0 .0 4 y 9 ) ( 0 .0 4 ) 0 .1 6 0
2
o r , 2 5 0 0 ( 0 .0 4 y 9 ) ( 0 .0 4 ) 0 .1 6 0
100
or, 0 .1 6
( 0 .0 4 y 9 )
2
100
( 0 .0 4 y 9 )
2
or,
0 .1 6
o r , ( 0 .0 4 y 9 ) 6 2 5
2
o r , ( 0 .0 4 y 9 ) 2 5
( 0 .0 4 y 9 ) 2 5 ( 0 .0 4 y 9 ) 2 5
25 9 25 9
or, y or, y
0 .0 4 0 .0 4
or, y 400 or, y 850
w e d is c a r d y 8 5 0 b e c a u s e y 0
d 2 2 1
A ( y ) { 1 0 0 ( 0 .0 4 y 9 ) 0 .1 6} 1 0 0 ( 2 ) ( 0 .0 4 y 9 ) ( 0 .0 4 )
dy
8
( 0 .0 4 y 9 )
3
8
A ( 4 0 0 ) 0 .0 0 0 5 1 2 ; [+ v e , c o n c a v e u p ]
{0 .0 4 ( 4 0 0 ) 9 )
3
y 4 0 0 g a llo n s w ill m a k e th e a v e r a g e c o s t p e r b a r r e l m in im u m
b) Compute the minimum average cost per barrel.
M in im u m a v e r a g e c o s t p e r b a r r e l,
2500
A(400) + 0 .1 6 ( 4 0 0 ) $ 1 6 4 p e r b a r r e l
0 .0 4 ( 4 0 0 ) 9
Do this at home: Question 9: When x gallons of olive oil are produced the average cost
per barrel is A(x), where,
4, 000
A(x) + 0 .2 5 x ; x>0
0 .1 x 2 0
a) Find the value of x that minimizes average cost per barrel.
b) Compute the minimum average cost per barrel.
Question 10: Profit realized when x thousand gallons of antifreeze are produced and sold
is P(x) thousand dollars, where,
1
P ( x ) (1 0 0 1 0 x ) 2 0 .2 x
a) Find the value of x that leads to maximum profit.
F o r th e p r o f it to b e m a x im u m ,
P ( x ) = 0
1
d
or, { (1 0 0 1 0 x ) 2 0 .2 x } 0
dx
1
d d
or, (1 0 0 1 0 x ) 2 ( 0 .2 x ) 0
dx dx
1
1 1 d d
or, (1 0 0 1 0 x ) 2 (1 0 0 1 0 x ) ( 0 .2 x ) 0
2 dx dx
1
5
or, (1 0 0 1 0 x ) 2
0 .2
1
o r , (1 0 0 1 0 x ) 2 2 5
o r , (1 0 0 1 0 x ) 6 2 5
625 100
or, x 5 2 .5 th o u s a n d g a llo n s
10
1 1 3
d 1 1
P ( x ) {5 (1 0 0 1 0 x ) 2
0 .2} 5 ( ) (1 0 0 1 0 x ) 2
(1 0 ) 2 5 (1 0 0 1 0 x ) 2
dx 2
3
P ( 5 2 .5 ) 2 5{1 0 0 1 0 ( 5 2 .5 ) } 2
0 .0 0 1 6 ; [ v e , c o n c a v e d o w n ]
T h u s x 5 2 .5 th o u s a n d g a llo n s le a d s to m a x i m u m p r o f it
P (5 2 .5 ) {1 0 0 1 0 (5 2 .5 )} 2 0 .2 (5 2 .5 ) 1 4 .5 th o u s a n d d o lla rs $ 1 4 , 5 0 0
Question 11: A company operates a fleet of delivery trucks. Study shows that gallons of
fuel consumed per mile of driving, F(x), is related to the speed at which a truck is driven,
x miles per hour, by the function
k1
F (x) k2 x; 10 x 80
x
w h e r e k 1 a n d k 2 a r e p a r a m e te r s th a t v a r y s o m e w h a t f r o m tr u c k to tr u c k .
a) Find and write the expression for the speed, x that will lead to minimal fuel
consumption per mile of driving.
F o r th e f u le c o n s u m p tio n to b e m in im u m ,
F ( x ) = 0
d k1
or, { k 2 x} 0
dx x
d 1 d
o r , k1 ( )+ k 2 (x) 0
dx x dx
d 1 d
o r , k1 (x )+ k 2 (x) 0
dx dx
11
o r , k1 x +k2 0
2
o r , k1 x +k2 0
k1
or, 2
+k2 0
x
k1
or, x
k2
d 2 3 2 k1
F ( x ) ( k1 x + k 2 ) k1 ( 2 ) x 3
; [+ v e , a s x is a lw a y s p o s itiv e ; c o n c a v e u p ]
dx x
k1
T hus x w ill m a k e th e fu e l c o n s u m p tio n m in im u m
k2
b) What speed will provide minimal fuel consumption per mile of driving for a truck
having k1=4.9 and k2=0.004?
k1 4 .9
x 3 5 m ile s p e r h o u r
k2 0 .0 0 4
Question 12: When a 3-ton truck is driven at a speed of x miles per hour, it travels m(x)
miles per gallon of fuel consumed, where,
x
m (x)
5 .7 6 0 .0 0 3 6 x
2
a t w h a t s p e e d s h o u ld a tr u c k b e d r iv e n i f m ( x ) is to b e m a x im iz e d ?
F o r m ( x ) to b e m a x im u m ,
m ( x ) = 0
d x
or, { } 0
d x 5 .7 6 0 .0 0 3 6 x
2
d d
( 5 .7 6 0 .0 0 3 6 x ) ( x) x ( 5 .7 6 0 .0 0 3 6 x )
2 2
dx dx
or, 0
( 5 .7 6 0 .0 0 3 6 x )
2 2
( 5 .7 6 0 .0 0 3 6 x ) x ( 0 .0 0 7 2 x )
2
or, 0
( 5 .7 6 0 .0 0 3 6 x )
2 2
o r , 5 .7 6 0 .0 0 3 6 x 0 .0 0 7 2 x 0
2 2
o r , 5 .7 6 0 .0 0 3 6 x 0
2
o r , 5 .7 6 0 .0 0 3 6 x
2
5 .7 6
1600
2
or, x
0 .0 0 3 6
o r , x 4 0 m ile s p e r h o u r
dx dx
(5 .7 6 0 .0 0 3 6 x )
2 4
(5 .7 6 0 .0 0 3 6 x ) ( 0 .0 0 7 2 x ) 2 (5 .7 6 0 .0 0 3 6 x )(5 .7 6 0 .0 0 3 6 x )( 0 .0 0 7 2 x )
2 2 2 2
(5 .7 6 0 .0 0 3 6 x )
2 4
0 .0 0 7 2 x (5 .7 6 0 .0 0 3 6 x ){5 .7 6 0 .0 0 3 6 x 2 (5 .7 6 0 .0 0 3 6 x )}
2 2 2
(5 .7 6 0 .0 0 3 6 x )
2 4
0 .0 0 7 2 x {3 (5 .7 6 ) 0 .0 0 3 6 x } 1 2 4 4 1 6 x 0 .0 0 0 0 2 5 9 2 x
2 3
(5 .7 6 0 .0 0 3 6 x ) (5 .7 6 0 .0 0 3 6 x )
2 3 2 3
0 .1 2 4 4 1 6 ( 4 0 ) 0 .0 0 0 0 2 5 9 2 ( 4 0 )
3
m ( 4 0 ) 0 .0 0 2 1; [ v e , c o n c a v e d o w n ]
{5 .7 6 0 .0 0 3 6 ( 4 0 ) }
2 3
x 4 0 m ile s p e r h o u r m a k e s th e m ( x ) m a x im u m
Question 13: If the proportion of defective transistors in a very large stock of transistors
is P, then the proportion of good transistors is (1-P). If the probability that the first
defective is the 10th one is C(P), where,
C ( p ) p (1 p )
9
w h a t v a lu e o f p w ill m a x im iz e C ( p )?
F o r C ( p ) to b e m a x im u m , C ( p ) 0
d
{ p (1 p ) } 0
9
or,
dp
d d
(1 p ) (1 p ) ( p) 0
9 9
or, p
dp dp
d
o r , 9 p (1 p ) (1 p ) (1 p ) 0
8 9
dp
o r , 9 p (1 p ) (1 p ) 0
8 9
o r , (1 p ) ( 9 p 1 p ) 0
8
o r , (1 p ) ( 1 0 p 1) 0
8
E ith e r , o r,
(1 p ) 0 10 p 1 0
8
or, p 1 o r , p 0 .1
dp dp dp
(1 p ) ( 1 0 ) 8 ( 1 0 p 1) (1 p ) 1 0 (1 p ) 8 ( 1 0 p 1) (1 p )
8 7 8 7
(1 p ) [1 0 (1 p ) 8 ( 1 0 p 1) ] (1 p ) [1 0 1 0 p 8 0 p 8 ]
7 7
(1 p ) (1 8 9 0 p )
7
If p 1, C (1) (1 1) (1 8 9 0 ) 0 ;
7
[ te s t f a il]
If p 0 .5 , th e n C ( 0 .5 ) (1 0 .5 ) { 1 0 ( 0 .5 ) 1) } 0 .0 1 5 ; [ v e ]
8
If p 1 .5 , th e n C (1 .5 ) (1 1 .5 ) { 1 0 (1 .5 ) 1) } 0 .0 0 0 2 1; [ v e ]
8
A t p 1 w e h a v e a s ta tio n a r y in f le c tio n p o i n t
T h u s p 0 .1 m a k e s C ( p ) m a x im u m
Question 14: Profit per tree grown and sold, by a tree grower depends upon the height of
a tree at the time of sale. Taking h as tree height in inches, the profit per tree, in dollars,
is approximated by,
1
P ( h ) (1 0 2 h ) 2 0 .1 h
100 10
or, h 4 5 in c h e s
2
dh 2
3
P ( 4 5 ) {1 0 2 ( 4 5 )} 2
0 .0 0 1; [ ve, concave dow n]
T h u s , tre e h e ig h t, h 4 5 in c h e s p ro v id e s m a x im u m p ro fit p e r tre e
P ( 4 5 ) {1 0 2 ( 4 5 ) } 2 0 .1( 4 5 ) $ 5 .5 p e r tr e e
Question 15: Unilever Bangladesh estimates the total potential number of customers for a
new product is 1,000,000. It plans to operate a promotional campaign to sell the product
and uses the response function,
0 .0 1 t
r ( t ) 0 .2 5 0 .2 5 e
as a measure of the proportion of total customer potential responding to the promotion
after it has been in operation for t days. On the average, one response generates $5 in
revenue. Campaign costs consist of a fixed cost of $15,000 plus a variable cost of $1,000
per day of operation.
0 .0 1 t
R e v e n u e 5 ( 1 ,0 0 0 ,0 0 0 ) { r ( t ) } ( 5 , 0 0 0 , 0 0 0 ) { 0 .2 5 0 .2 5 e }
T o ta l c o s t F ix e d c o s t + V a r ia b le c o s t 1 5 0 0 0 + 1 0 0 0 t
0 .0 1 t
P r o f it R e v e n u e T o ta l c o s t ( 5 , 0 0 0 , 0 0 0 ) { 0 .2 5 0 .2 5 e } (1 5 0 0 0 + 1 0 0 0 t)
0 .0 1 t
1250000 1250000e 15000 1000t
0 .0 1 t
P r o f it P ( t ) 1 2 3 5 0 0 0 1 0 0 0 t 1 2 5 0 0 0 0 e
d 0 .0 1 t
or, {1 2 3 5 0 0 0 1 0 0 0 t 1 2 5 0 0 0 0 e } 0
dt
0 .0 1 t
or, 1000 1250000e ( 0 .0 1) 0
0 .0 1 t
or, 1000 12500e 0
0 .0 1 t
o r ,1 2 5 0 0 e 1000
0 .0 1 t 1000
or, e 0 .0 8
12500
0 .0 1 t
o r , ln e ln ( 0 .0 8 ) ; [ ta k in g lo g e o r L n in b o th s id e s ]
o r , 0 .0 1 t ( ln e ) ln ( 0 .0 8 ) ; [ ln e lo g e e 1]
o r , 0 .0 1 t ln ( 0 .0 8 )
ln ( 0 .0 8 )
or,t 2 5 2 .5 7 3 d a y s
0 .0 1
T h u s th e c a m p a ig n s h o u ld c o n tin u e fo r t 2 5 2 .5 7 3 d a y s fo r th e p ro fi t to b e m a x im u m
O p e r a tin g c o s t 3 4 5 6 0 0 t
0 .1 6 t
P r o f it R e v e n u e c o s t 1 2 ( 1 ,0 0 0 ,0 0 0 ) {0 .9 0 .9 e } 345600t
0 .1 6 t
P r o f it P ( t) 1 0 8 0 0 0 0 0 1 0 8 0 0 0 0 0 e 345600t
a ) H o w lo n g s h o u ld p u m p in g b e c o n tin u e d to m a x im iz e p r o f it ?
F o r p r o f it to b e m a x im u m , P ( t ) 0
d 0 .1 6 t
or, {1 0 8 0 0 0 0 0 1 0 8 0 0 0 0 0 e 3 4 5 6 0 0 t} 0
dt
0 .1 6 t
or, 10800000e ( 0 .1 6 ) 3 4 5 6 0 0 0
0 .1 6 t
o r ,1 7 2 8 0 0 0 e 345600
0 .1 6 t 345600
or, e
1728000
0 .1 6 t
or, e 0 .2
0 .1 6 t
o r , ln e ln ( 0 .2 ) ; [ ta k in g lo g e o r L n in b o th s id e s ]
o r , 0 .1 6 t ( ln e ) ln ( 0 .2 ) ; [ ln e lo g e e 1]
o r , 0 .1 6 t ln ( 0 .2 )
ln ( 0 .2 )
or,t 1 0 .0 6 y e a r s
0 .1 6
d 0 .1 6 t 0 .1 6 t 0 .1 6 t
P ( t ) (1 7 2 8 0 0 0 e 345600) 1728000e ( 0 .1 6 ) 2 7 6 4 8 0 e
dt
0 .1 6 (1 0 .0 6 ) 1 .6 0 9 6
P (1 0 .0 6 ) 2 7 6 4 8 0 e 276480e 5 5 2 8 7 .0 3; [ v e , c o n c a v e d o w n ]
T h u s th e p u m p in g s h o u ld b e c o n tin u e d fo r t 1 0 .0 6 y e a rs fo r th e p ro fit to b e m a x im u m
b ) W h a t is th e m a x im u m p ro fit ?
0 .1 6 (1 0 .0 6 )
P (1 0 .0 6 ) 1 0 8 0 0 0 0 0 1 0 8 0 0 0 0 0 e 3 4 5 6 0 0 (1 0 .0 6 )= $ 5 ,1 6 3 ,6 1 4 .0 8 1
P ro fit, P ( x ) 2 5{ ln ( 2 x 1)} 2 x
F o r p r o f it to b e m a x im u m , P ( x ) 0
d
or, [ 2 5{ ln ( 2 x 1) } 2 x ] 0
dx
d d
or, 25 { ln ( 2 x 1) } (2 x) 0
dx dx
1
or, 25 (2) 2 0
2x 1
50
or, 2
2x 1
or, 2 x 1 25
or , x 12 ounces of seed
d 50 d 1 11 d
P ( x ) ( 2) 50 ( 2 x 1) 5 0 ( 1) ( 2 x 1) ( 2 x 1)
dx 2x 1 dx dx
2 100
5 0 ( 2 x 1) (2)
( 2 x 1)
2
100
P (1 2 ) 0 .1 6 ; [( v e ), c o n c a v e d o w n ]
( 2 4 1)
2
T h u s x 1 2 o u n c e s o f s e e d w ill m a k e th e p r o f it m a x im iz e d .
Question 18: The revenue from, and the cost of, operating an undertaking for t years are,
respectively, in millions of dollars,
R (t ) 3e a n d C ( t ) 1 .5 e
0 .0 5 t 0 .0 8 t
Question 19: The total potential audience for a promotional campaign is 10,000
customers. Revenue averages $3 per response to the campaign. Campaign costs are a
fixed amount of $500, plus $300 per day the campaign continues. The proportion of the
total audience responding by time t days is
0 .2 5 t
1 e
a) How long should the campaign continue if profit is to be maximized?
b) Compute maximum profit.
The major parts of the income people have available for their use is spent on food,
clothing, shelter, medical care, transportation, recreation, and so on and this is called
consumption expenditure. The remaining amount after consumption expenditure is saved
in one form or another. Both consumption and saving depends on or function of income
(Y).
Marginal Propensity to Consume (MPC) is the rate at which consumption changes for
each additional $1 of income received. MPC is the part of each extra dollar of income that
is spent.
Marginal Propensity to Save (MPS) is the part of each extra dollar of income that is
saved.
d
M a r g in a l P r o p e n s it y t o C o n s u m e M PC [ C (Y ) ]
dY
d d
M a r g in a l P r o p e n s it y t o S a v e M PS [Y C (Y ) ] 1 [ C (Y ) ] 1 M P C
dY dY
Multiplier: The rate, at which income increases for each additional $1 of investment or
savings, is called multiplier.
S a v in g s I Y C ( Y )
d d d
or, (I ) (Y ) [ C (Y ) ]
dI dI dI
dY d C (Y ) d Y
o r ,1 .
dI dY dI
dY d C (Y )
o r ,1 [1 ]
dI dY
dY
o r ,1 [1 M P C ]
dI
1 dY
or,
[1 M P C ] dI
dY 1 1
o r , M u lt ip lie r
dI [1 M P C ] M PS
0 .4 Y
C ( Y ) 6 0 .6 Y e
represents the family consumption function.
M PC
0 .4 ( 2 )
If Y 2 ; ( 2 0 th o u s a n d ), 0 .6 0 .4 e 0 .7 7 9 7
b) Suppose Y is trillions of dollars. Find the multiplier at an income level of $0.8 trillions.
M PC
0 .4 ( 0 .8 )
If Y 0 .8; 0 .6 0 .4 e 0 .8 9 0 4
dY 1 1 1
M u lt ip lie r 9 .1 2
dI [1 M P C ] M PS 1 0 .8 9 0 4
Integral Calculus
1) (3 z 2 z 5 m ) d z 3 z d z 2 z d z 5 dz m
3 3
dz
3 1 11 4 2
z z z z
3 2 5z mz c 3 2 5z mz c
31 11 4 2
4
3z
z 5z mz c
2
2 ) (7 x 5) d x
2
L e t, 7 x 5 z
d d d
or, (7 x ) (5 ) (z)
dx dx dx
dz
or, 7
dx
dz
or, dx
7
2 1 3
dz 1 1 z 1 z
(7 x 5) dx z z dz . c . c
2 2 2
7 7 7 2 1 7 3
(7 x 5)
3
c
21
L e t, 5 x 6 z
d d d
or, (5 x ) (6 ) (z)
dx dx dx
dz
or,5
dx
dz
or, dx
5
3 1 2
3 3 dz 1 3 1 z
1 z
(5 x 6 ) dx z 5
5
z dz .
5 3 1
c .
5 2
c
1 1
c c
1 0 (5 x 6 )
2 2
10 z
(2 x 3 x 4)dx 2 x dx 3 x dx 4
2 2
dx
2 1 11 3 2
x x 2x 3x
2 3 4x c 4x c
2 1 11 3 2
Question No. 8:
(3 y 4 y 1) d y 3 y d y 4 y d y 1 dy
3 3
3 1 11 4 2
y y 3y 4y
3 4 y c y c
31 11 4 2
Question No. 9:
p dq p dq pq c
q dp q dp pq c
11 2
p p q
pq dp q p dp q
11
c
2
c
( x x 1) d x
3 4
Do these at home: Q.12: p q d q Q.13:
( y y 1) d y Q.15: (3 y 5 y 1) d y
2 5 2 4
Q.14:
dy
2 3
Q.16: ( 4 x 6 x 1) d x Q.17:
3 5
x d x Q.18: 7 d y Q.19: 3
y
dx
Q.20: x
4
Question No. 21
3 1
3 3 y
(5 2 y )dy 5 dy 2 y dy 5 y 2
3 1
c
2
y 1
5y 2 c 5y 2
c
2 y
4
1
Do these at home: Q.22: (7 3 x ) d x Q.23: (2 x
x
2
1) d x
1 1 4
2
(y 1) d y
q 3x
2 3 3
Q.24: 3 Q.25: p d p Q.26: d q Q.27: dx
y
3 1 2 2 1
Q.28: 5y 2
d y Q.29: (2
x
2
5
) d x Q.30: (2 x
x
3
4
) dx
3x3 4x3
2 1 31
3 4
x x
1 2[ ] c 4x 3x c
3 4
3 4
3( x 2 x )d x
2
Do these at home: Q.32:
3 1
3 3 (2 x 9) 1
16(2 x 9) dx 16 (2 x 9) dx 16 31 2
c
(2 x 9)
4
1
16 c 2(2 x 9) c
4
4 2
5 2
4
Q.36: (2 x 3) dx
1 1
1
1
dx (5 3 x ) 2
1 (5 3 x ) 2 1
(5 3 x ) dx .( ) c . c
2
1
1 3 1 3
(5 3 x ) 2 1
2 2
(5 3 x ) 2 (5 3 x )
c c
3 3
2
dw
Do these at home: Q.38: (7 2 w ) 3
1
1
1
8dx (2 x 5) 3
1
8 (2 x 5) dx 8 c
3
1
.
1 2
(2 x 5) 3 1
3
2 2
2
(2 x 5) 3
3(2 x 5) 3
4 c 4 c 6(2 x 5) 3 c
2 2
3
12dx
Do these at home: Q.38: 1
(3 x 7 ) 2
Integral Calculus
1
F in d th e a r e a u n d e r f ( x ) x 3 5 o v e r th e in te r v a l x 1 to x 8
8 1
(x 5)dx
3
1
1
1 1
x3
H e re , ( x 3 5 ) d x x 3 d x 5 dx 5x c
1
1
3
4 4
3
x 3x3
5x c 5x c
4 4
3
8
4 4 4
8 1 3 3 3
3 x 3 (8 ) 3 (1 )
(x 5)dx 5x c 5 (8 ) c 5 (1) c
3
4 4 4
1
1
3 (8 ) 3 3 3
5 (8 ) c 5 c 47 4 6 .2 5
4 4 4
2 d x 2 x c 2 (5 ) c 2 ( 2 ) c 6
5
2
2
Question No. 2:
3 3
3 d x 3 d x 3 x c 3 (3 ) c 3 (1) c 6
3
1
1 1
4 4
4 4 11
x x
2
2 x d x 2 x d x 2
c 2 c
1 1 1 1 1 2 1
4
x c ( 4 ) c ( 1) c 1 5
2 2 2
1
Question No. 5:
6 6
6 6 6 11
x x
2
( x 1) dx x d x 1 dx x c x c
2 2 2 1 1 2 2 2
6
x (6 ) (2)
2 2 2
x c (6 ) c (2) c 20
2 2 2 2
Question No. 6:
3 3 3 3
x
2
3
( 2 x 1) dx 2 x dx 1 dx 2. x c x x c
2
1
1 1 1 2 1
( 3 ) ( 3 ) c ( 1) ( 1) c 4
2 2
Question No. 7:
8 8
2 1 5
5
8
x3 x3
8 2 3
3x
x dx c c c
3
2 5 5
1
0
0
3 0 3 0
5 5
3 3
3 (8 ) 3 ( 0 )
c c 1 9 .2
5 5
9 1
x
2
Do this at home: Q.8: dx
0
2 2 2 2
(x 3 x 5) dx x dx 3 x dx 5 dx
2 2
1 1 1 1
2 2
2 1 11
x x
3 2
x 3x
3. 5x c 5x c
2 1 11 1 3 2 1
(2) (1)
3 2 3 2
3(2 ) 3 (1)
5(2) c 5 ( 2 ) c 2 .8 3
3 2 3 2
3 8 1
(x 5 x 2 ) d x Q.12:
2
(1 2 y
3
Do this at home: Q.10: ) dy
0 1
9 9
1
1
1
9 1 9 9 1 2 2
y y
(5 ) dy 5 dy dy 5 y c 5 y c
2 2
y y
1 1
1 1 1 1
2 1 2 1
9
1 1 1
5 y 2 y 2 c 5 (9 ) 2 (9 ) 2 c 5 (1) 2 (1) 2 c 4 4
1
Question No. 13:
6 6
1
1
3
(2 x 3) 2 (2 x 3) 2 1
6 1
1
(2 x 3) dx . c . c
2
1 2 3 2
2 1
2 2 2 2
6 6
3 3
2 ( 2 x 3 ) 2
1 ( 2 x 3 ) 2
. c c
3 2 3
2 2
3 3
{ 2 ( 6 ) 3} { 2 ( 2 ) 3}
2 2
c c 8 .6 7
3 3
(5 x 4 )
2
Do this at home: Q.14: dx
1
6 6 6
60 1 2
(3 x 2 ) 2
dx 60
(3 x 2 )
2
d x 6 0 (3 x 2 ) dx
1 1 1
6 6 6
2 1 1
(3 x 2 ) 1 (3 x 2 ) 1 1
60 . c 60 . c 60 c
2 1 3 1 1 3 1 3(3 x 2 ) 1
1 1
60 c c
3{3 ( 6 ) 2} 3{3 (1) 2}
1 1 1 1
60( c c) 60( ) 3
60 15 15 60
6 b d
20
3x
2 3
3
dx dx 4x dx
Do this at home: Q.16: Q.17: Q.18:
0
( 4 x 1) 2 a c
n 1
Q.19: ( x 1) dx
Q.20: ( 2 x 1) dx
1 n
Find the area under the curve of the following functions over the given x
intervals:
2
2 2 11
x 2
2x dx 2 x dx 2. c x c ( 2 ) c (1) c 3
2 2 2
1
1 1 11 1
Q.23: f ( x ) 3 x 2 ; x 1 to x 2 Q.24: f ( x ) 2 x 3 ; x 1 to x 1
6 4
Q.25: f ( x ) 2
; x 1 to x 3 Q.26: f ( x ) 3
; x 1 to x 2
x x
40 2
Question No. 27: f ( x ) 4 0 ( 2 x 1) ; x 0 to x 2
( 2 x 1)
2
2
2 2 2 1
2 2
( 2 x 1) 1
4 0 ( 2 x 1) d x 4 0 ( 2 x 1) dx 40.
2 1
. c
0 0 2 0
2
1
2 20
2 0 ( 2 x 1) c c
0
( 2 x 1) 0
20 20
c c 16
{ 2 ( 2 ) 1} { 2 ( 0 ) 1}
50
f (x) ; x 1 to x 2 5
Do this at home: Q.28: 3
x2
f ( x ) 1 0 0 .5 x
f ( x ) 1 0 0 .5 x 0
10
or, x 20
0 .5
W e h a v e to f in d th e a r e a u n d e r th e c u r v e w h e r e ,
f ( x ) 1 0 0 .5 x ; x 0 to x 2 0
1 0 ( 2 0 ) 0 .2 5 ( 2 0 ) c 1 0 ( 0 ) 0 .2 5 ( 0 ) c 1 0 0
2 2
Question No. 30: Find the area bounded by the axis and
f (x) 5 x
f (x) 5 x 0
or, x 5
W e h a v e to f in d th e a r e a u n d e r th e c u r v e w h e r e ,
f ( x ) 5 x ; x 0 to x 5
0 0 0 0
2
x
(5 x) dx 5 dx x dx 5 x c
5 5 5 2 5
(5)
2 2
(0 )
5(0 ) c 5(5) c 1 2 .5
2 2
Question No. 31: Find the area bounded by the x-axis and
f (x) 30 x 3x
2
f (x) 30 x 3x 0
2
o r , 3 x (1 0 x ) 0
E ith e r , 3 x 0 o r ,(1 0 x ) 0
or, x 0 or, x 10
f ( x) 30 x 3 x ; x 0 to x 1 0
2
10 10 10 10
2 3
x x
(3 0 x 3 x ) dx 30 x dx 3x dx 30 3. c
2 2
0 0 0 2 3 0
10
1 5 x x c 1 5 (1 0 ) (1 0 ) c 1 5 ( 0 ) ( 0 ) c 5 0 0
2 3 2 3 2 3
0
Do these at home:
Integral Calculus
1 1
(m x b) dx (m x b )dx
L e t, m x b z
d d d
or, (m x) (b ) (z)
dx dx dx
dz
or, m
dx
dz
or, dx
m
1 1 1 dz 1 1 1
(m x b) dx (m x b) dx z m
m
z
dz
m
( ln z ) c
1
ln ( m x b ) c
m
3 3 3
4dx 1 1
2 ln ( 2 x 3 ) c
3
2x 3
4
2x 3
d x 4 . ln ( 2 x 3 ) c
2
1
1
1 1
2 ln ( 9 ) c 2 ln (1) c 2 ln ( 9 ) 2 ln (1) 4 .3 9
3 3 3
6dx 1 1
2 ln ( 3 x 2 ) c
3
3x 2 6
3x 2
d x 6 . ln ( 3 x 2 ) c
3
1
1
1 1
2 ln ( 7 ) c 2 ln (1) c 2 ln ( 7 ) 2 ln (1) 3 .8 9
1 1
x dx
x
d x ln x c
Question No. 2:
dx 1
x
x
d x ln x c
Question No. 3:
2dx 1
x
2
x
d x 2 ln x c
1 1
Do this at home: Q.4: 3 x dx 3 d x 3 ln x c
x
Question No. 5:
2 1 1
2 x x 1 1
x dx
2 1
c
1
c x c
x
c
Question No. 6:
2 1 1
dx 2 x x 1 1
x
2
x dx
2 1
c
1
c x c
x
c
Question No. 7:
dx 1 1
5x 4
5x 4
dx
5
ln (5 x 4 ) c
Question No. 8
1
3 x
d x ln (3 x ) c
1 1
Question No. 9: 3 0 .2 x dx
0 .2
ln (3 0 .2 x ) c 5 ln (3 0 .2 x ) c
1 1 1
2 ( 0 .5 x 1) dx 2
( 0 .5 x 1)
dx 2
0 .5
ln ( 0 .5 x 1) c
4 ln ( 0 .5 x 1) c
2 1
dx 2 1 ( 2 x 1)
( 2 x 1) 2
( 2 x 1) dx .
2 2 1
c
1 1 1
( 2 x 1) c c
2 2 ( 2 x 1)
2 1
10dx 2 1 (5 x 3)
(5 x 3) 2
1 0 ( 5 x 3 ) d x 1 0 .
5 2 1
c
1 2
2 (5 x 3) c c
(5 x 3)
10 10
dx 1
d x ln x c ln (1 0 ) c ln (1) c 2 .3 0
10
x
x
1
1 1
e e
1
d x ln x c ln ( e ) c ln (1) c 1
1 e
x dx x
1
1 1
2 2
dx 1
2 ln ( 0 .5 x 4 ) c
2
0 .5 x 4
0 .5
ln ( 0 .5 x 4 ) c
0
0
0
Question No. 15:
2 ln ( 5 ) c 2 ln ( 4 ) c 0 .4 4 6
10
1
Do this at home: Q.16: (
0 .6 x 1
) dx
5
(mxb)
(mxb) 1 (mxb) e
e dx
m
e c
m
c
10 10 10
1
30e dx 30 e dx 30e c
0 .0 6 x 0 .0 6 x 0 .0 6 x
.
0 0 0 .0 6 0
10
500e c 500e c 500e c
0 .0 6 x 0 .0 6 (1 0 ) 0 .0 6 ( 0 )
0
4 1 1 .0 5
2 2 2
2 x 1 2 x 1 1 1 2 x 1
e dx e
. c
2
1
2
e c
1
1
1 3 1 1
e c e c 8 .6 8 3
2 2
x
a
a dx c
x
ln a
mxb mxb
mxb 1 a a
a dx
m
.
ln a
c
m ln a
c
2
2 2 x 1
2 x 1
( 0 .9 ) 1
( 0 .9 ) dx . c
1 ln ( 0 .9 ) 2 1
( 0 .9 ) ( 0 .9 )
3 1
c c 0 .8 1 1
2 ln ( 0 .9 ) 2 ln ( 0 .9 )
2 (6 ) 2 (6 )
2 1
c c 3 3 .4 8 7
ln ( 6 ) ln ( 6 )
e d x e c
x x
Question No. 2:
x
2
2 dx c
x
ln 2
Question No. 3:
x
x 3
3 dx
ln 3
c
Question No. 4:
x x
e dx e c
Question No. 5:
1
dx c 2e c
0 .5 x 0 .5 x 0 .5 x
e e
0 .5
Question No. 6:
0 .2 x 0 .2 x 1 0 .2 x
1 5 5 5
5 dx c 5 c c
0 .2 x
.
0 .2 ln 5 ln 5 ln 5
Question No. 7:
1 0 .4 x 1 0 .4 x
1 0 .4 x 1 ( 0 .5 ) ( 0 .5 )
( 0 .5 ) dx
0 .4
.
( ln 0 .5 )
c 2 .5
( ln 0 .5 )
c
3 0 .1 x 1 3 0 .1 x 3 0 .1 x
Question No. 9: 2e dx
0 .1
2e c 20e c
5 0 .2 x 1 5 0 .2 x 5 0 .2 x
Question No. 10: 4e dx
0 .2
4e c 20e c
1 0 .5 x 1 0 .5 x 2
Question No. 12: e 0 .5 x
dx e dx
0 .5
e c
e
0 .5 x
c
5 5
1 0 .2 x 1 0 .2 x 1 1 0 .2 x
5
2e dx 2e . c 10e c
0
0 0 .2 0
11
10e c 1 0 e c 1 7 .1 8 2
1
2 2
2 0 .5 x 2 0 .5 x 1 2 0 .5 x
2
4e dx 4e . c 8e c
1
1 0 .5 1
8e c 8e c 1 4 .1 0 7
1 1 .5
2 2
x
( 0 .5 )
x
1 0 ( 0 .5 ) d x 1 0 c
1 ln ( 0 .5 ) 1
2 1
( 0 .5 ) ( 0 .5 )
1 0 c 1 0 c 3 .6 0 6
ln ( 0 .5 ) ln ( 0 .5 )
5 ( 0 .9 ) d x 5 c
x
0 ln ( 0 .9 ) 0
( 0 .9 ) ( 0 .9 )
2 0
5 c 5 c 9 .0 1 7
ln ( 0 .9 ) ln ( 0 .9 )
x x
d 2 2
x .2 dx x 2 dx { dx (x) 2 d x}d x x ln 2 d x
x x x
ln 2
x x x x
x2 1 x2 1 2 2
2 dx c { x (ln 2 ) 1} c
x
. 2
ln 2 ln 2 ln 2 ln 2 ln 2 (ln 2 )
Question No. 2:
6x
2x 1
dx
L e t, 2 x 1 z a g a in ,
or,
d
(2 x)
d
(1)
d
(z) 2x 1 z
dx dx dx
or, 2 x z 1
dz
or, 2
dx or, 6 x 3z 3
dz
or, dx
2
6x 1 1 dz 1 1
2x 1
dx 2x 1
6 x dx z
(3 z 3)
2
2
z
(3 z 3) d z
1 3 1 3 1
2
(3
z
)dz
2
[ 3 dz z
dz]
2
[ 3 z 3 ln z ] c
3 3 3 3
z ln z c ( 2 x 1) ln ( 2 x 1) c
2 2 2 2
3 3 3
3x ln ( 2 x 1) c 3 x ln ( 2 x 1) c
2 2 2
2x
( 0 .5 x 1) 2
dx
L e t, 0 .5 x 1 z
d d d a g a in ,
or, ( 0 .5 x ) (1) (z)
dx dx dx 0 .5 x 1 z
dz
o r , 0 .5 o r , 0 .5 x z 1
dx
1 dz or, 2 x 4 z 4
or,
2 dx
or, dx 2dz
2x 1 1 1
( 0 .5 x 1) 2
dx ( 0 .5 x 1) 2
2 x dx z
2
(4 z 4)2dz
z
2
(8 z 8 ) d z
2 1
8 2 z 1
z
dz 8 z d z 8 ln z 8
2 1
c 8 ln z 8
z
c
8 1
8 ln ( 0 .5 x 1) c 8[ ln ( 0 .5 x 1) ] c
( 0 .5 x 1) ( 0 .5 x 1)
Question No. 4:
d
x .e d x x e d x { ( x ) e d x}d x x e e
x x x x x
dx
dx
x e e c e ( x 1) c
x x x
Question No. 5:
2 0 .5 x 2 0 .5 x d 2 0 .5 x
x .e dx x e dx { dx
(x) e d x}d x
1 2 0 .5 x 1 2 0 .5 x 2 0 .5 x 1 2 0 .5 x
0 .5
xe
0 .5
e dx 2 xe 2
0 .5
e c
2 0 .5 x 2 0 .5 x 2 0 .5 x
2 xe 4e c 2e (x 2) c
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 100
Question No. 6:
9x
(3 x 4 ) 2
dx
a g a in ,
L e t, 3 x 4 z
3x 4 z
d d d
or, (3 x ) (4) (z) or,3x z 4
dx dx dx
dz o r , 9 x 3( z 4 )
or,3
dx or,9 x 3z 12
1
or, dx dz
3
9x 1 1 dz 1
(3 x 4 ) 2
dx (3 x 4 ) 2
9 x dx z
2
(3 z 1 2 )
3
z
2
( z 4)dz
2 1
1 4 1 1 z 1
(
z
z
2
)dz z
dz 4
z
2
d z ln z 4
2 1
c ln z 4
z
c
4
ln ( 3 x 4 ) c
(3 x 4 )
Question No. 7:
2
x ( 0 .5 x 1)
dx
2 ( 0 .5 x 1 0 .5 x ) 2 ( 0 .5 x 1) 2 ( 0 .5 x )
{ x ( 0 .5 x 1)
}d x { x ( 0 .5 x 1)
x ( 0 .5 x 1)
}d x
2 1 2 1
{ x
( 0 .5 x 1)
}d x x
dx ( 0 .5 x 1) d x
1
2 ln x ln ( 0 .5 x 1) c 2 ln x 2 ln ( 0 .5 x 1) c
0 .5
x
2{ ln x ln ( 0 .5 x 1) } c 2 ln c
( 0 .5 x 1)
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 101
Question No. 8:
0 .4 x 1 0 .4 x 1 d 0 .4 x 1
2 x .e dx 2 x e dx { dx
(2 x) e d x}d x
1 0 .4 x 1 2 0 .4 x 1 0 .4 x 1 5 0 .4 x 1
2x
0 .4
e
0 .4
e dx 5 xe
0 .4
e c
0 .4 x 1 0 .4 x 1
5 xe 1 2 .5 e c
Question No. 9:
2x a g a in ,
5 x 3 dx
5x 3 z
L e t, 5 x 3 z
d d d
or,5 x z 3
or, (5 x ) (3) (z)
dx dx dx z3
or, x
dz
or,5 5
dx
2z 6
dz or, 2 x
or, dx 5
5
2x 1 1 2 z 6 dz 1 1
5x 3 dx 5x 3 2 x dx z
.
5
.
5
25
z
(2 z 6)dz
1 6 1 6 1
25
(2
z
)dz
25
{ 2 dz z
d z}
25
{ 2 z 6 ln z } c
1 2 3 6
{ 2 ( 5 x 3 ) 6 ln ( 5 x 3 ) } c x ln ( 5 x 3 ) c
25 5 25 25
2 6 x 3
x ln ( 5 x 3 ) c 2[ ln ( 5 x 3 ) ] c
5 25 5 25
6
x (3 x 2 )
dx
3 (3 x 2 ) 9 x ) 3 (3 x 2 ) 9x
{ x (3 x 2 )
}d x { x (3 x 2 )
x (3 x 2 )
}d x
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 102
3 9 3 9 1
{ x
(3 x 2 )
}d x x
dx (3 x 2 ) d x 3 ln x 9 .
3
ln (3 x 2 ) c
x
3 ln x 3 ln (3 x 2 ) c 3[ln x ln (3 x 2 )] c 3 ln c
(3 x 2 )
Question No. 11:
2
0 .1 x 2
x .e dx
L e t, 0 .1 x 2 z
2
d d d
( 0 .1 x ) (2)
2
or, (z)
dx dx dx
dz
o r , 0 .2 x
dx
dz
or, x dx 5dz
0 .2
2 2
0 .1 x 2 0 .1 x 2
x .e dx 5e dz 5e c 5e c
z z
dx
1 e 0 .2 x
L e t, 1 e z
0 .2 x
d d d
(1) )
0 .2 x
or, (e (z)
dx dx dx
dz
0 .2 x
o r , 0 .2 e
dx
dz dz
or, dx
0 .2 ( z 1)
0 .2 x
0 .2 e
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 103
Applied Mathematics
Integral Calculus
F in d th e a r e a b o u n d e d b y th e f u n c tio n s
f (x) 15 2 x x
2
and
g (x) 9 x
b
A re a , A [ f (x) g ( x )]d x
a
T h e v a lu e s o f a a n d b a r e th e x -c o o r d in a te s o f th e p o in ts o f
in te r s e c tio n o f f ( x ) a n d g ( x )
A t th e p o in t o f in te r s e c tio n , f ( x ) g ( x )
o r ,1 5 2 x x 9 x
2
o r ,1 5 2 x x 9 x 0
2
or, x x 6 0
2
or, x x 6 0
2
or, x 3x 2 x 6 0
2
o r , ( x 2 )( x 3) 0
or , x 2, 3
b 2
A re a , A [ f ( x ) g ( x )]d x [1 5 2 x x ( 9 x ) ] d x
2
a 3
2 2
2 2 1 11
x x
3 2
x x
[ x x 6 ]d x 6 x c 6x c
2
3 2 1 11 3 3 2 3
2 ( 3) ( 3)
3 2 3 2
2
12 c 6 ( 3) c
3 2 3 2
2 ( 3) ( 3)
3 2 3 2
2
12 c 6 ( 3 ) c 2 0 .8 4
3 2 3 2
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 104
F in d th e a r e a b e tw e e n th e c u r v e s
f ( x) 3 x 3 x and
3
g (x) x
b
A re a , A [ f (x) g ( x )]d x
a
T h e v a lu e s o f a a n d b a r e th e x -c o o r d in a te s o f th e p o in ts o f
in te r s e c tio n o f f ( x ) a n d g ( x )
A t th e p o in t o f in te r s e c tio n , f ( x ) g ( x )
or,3x 3x x
3
or,3x 4 x 0
3
o r , x (3 x 4 ) 0
2
E ith e r , o r,
x 0 (3 x 4 ) 0
2
4
2
o r,x
3
2
o r,x
3
2 2
or, x , 0,
3 3
o r , x 1 .1 5 5 , 0 , 1 .1 5 5
b 1 .1 5 5
A re a , A [ f (x) g ( x )]d x 2 [3 x 4 x ]d x
3
a 0
1 .1 5 5 1 .1 5 5
3 1 11
x 3x
4
x
2 3 4 c 2 2x c
2
31 11 0 4 0
3 (1 .1 5 5 ) 3(0 )
4 4
2{ 2 (1 .1 5 5 ) c 2 ( 0 ) c }
2 2
4 4
2 ( 1 .3 3 3 4 ) 2 .6 7
A r e a c a n n o t b e n e g a tiv e , h e n c e a r e a 2 .6 7
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 105
Problem Set 10-3
Question No:3
F in d th e a r e a b o u n d e d b y th e f u n c tio n s
f ( x ) x 1 and
2
g (x) 10
b
A re a , A [ f (x) g ( x )]d x
a
T h e v a lu e s o f a a n d b a r e th e x -c o o r d in a te s o f th e p o in ts o f
in te r s e c tio n o f f ( x ) a n d g ( x )
A t th e p o in t o f in te r s e c tio n , f ( x ) g ( x )
or, x 1 10
2
or, x 9 0
2
or, x 3
3
b 3 2 1
x
A re a , A [ f ( x ) g ( x )]d x [x 9 ]d x 9x c
2
a 3 2 1 3
3
x 3 ( 3)
3 3 3
9x c 9 (3) c 9 ( 3) c
3 3 3 3
36
A r e a c a n n o t b e n e g a tiv e , h e n c e A r e a 3 6
F in d th e a re a b o u n d e d b y th e fu n c tio n s
f (x) 34 x
2
and
g (x) 9
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 106
Question No:5
F in d th e a r e a b o u n d e d b y th e f u n c tio n s
f ( x) x 8 x 20 and
2
g (x) 14 x
b
A re a , A [ f (x) g ( x )]d x
a
T h e v a lu e s o f a a n d b a r e th e x -c o o r d in a te s o f th e p o in ts o f
in te r s e c tio n o f f ( x ) a n d g ( x )
A t th e p o in t o f in te r s e c tio n , f ( x ) g ( x )
or, x 8 x 20 14 x
2
or, x 8 x 20 14 x 0
2
or, x 7 x 6 0
2
or, x 6 x x 6 0
2
o r , ( x 6 ) ( x 1) 0
or , x 6, 1
b 6
A re a , A [ f (x) g ( x )]d x [x 7 x 6 ]d x
2
a 1
6 6
2 1 11
x x
3 2
x 7x
7 6x c 6x c
2 1 11 1 3 2 1
(6 ) (1)
3 2 3 2
7 (6 ) 7 (1)
6 (6 ) c 6 (1) c
3 2 3 2
2 0 .8 4
A r e a c a n n o t b e n e g a tiv e , h e n c e A r e a 2 0 .8 4
F in d th e a re a b o u n d e d b y th e fu n c tio n s
f (x) x
3
and
g (x) x
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 107
Question No:6
F in d th e a r e a b o u n d e d b y th e f u n c tio n s
f ( x ) 20 2 x and
g (x) 12 x 2 x
2
A re a , A [ f (x) g ( x )]d x
a
T h e v a lu e s o f a a n d b a r e th e x -c o o r d in a te s o f th e p o in ts o f
in te r s e c tio n o f f ( x ) a n d g ( x )
A t th e p o in t o f in te r s e c tio n , f ( x ) g ( x )
or, 20 2 x 12 x 2 x
2
or, 20 2 x 12 x 2 x 0
2
or, 2 x 14 x 20 0
2
or, x 5 x 2 x 10 0
2
o r , ( x 5 )( x 2 ) 0
o r , x 5, 2
b 5
A re a , A [ f (x) g ( x )]d x [2 x 1 4 x 2 0 ]d x
2
a 2
5 5
2 1 11
x 2x
3
x
2 14 20 x c 7 x 20 x c
2
2 1 11 2 3 2
2 (5 ) 2(2)
3 3
7 (5 ) 2 0 (5 ) c 7(2) 20(2) c
2 2
3 3
9
A r e a c a n n o t b e n e g a tiv e , h e n c e A r e a 9
F in d th e a re a b o u n d e d b y th e fu n c tio n s
f ( x ) x 5 x + 4 and g ( x) 4
4 2
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 108
Applied Mathematics
r ( t ) 2 0 1 .2 t m illio n to n s p e r y e a r
a) Compute the total amount of coal the country will consume in the next 10 years.
10
10 11
m illio n to n s t
[ 2 0 1 .2 t ] d t ( y e a r) 2 0 t 1 .2
11
c m illio n to n s
0
year 0
10
2 0 t 0 .6 t c m illio n to n s
2
0
2 0 (1 0 ) 0 .6 (1 0 ) c 2 0 ( 0 ) 0 .6 ( 0 ) c m illio n to n s
2 2
2 6 0 m illio n to n s
b) How much coal will be consumed in the following 10 years, that is during the
second decade from now?
20
20
[ 2 0 1 .2 t ] d t 2 0 t 0 .6 t c m illio n to n s
2
10
10
2 0 ( 2 0 ) 0 .6 ( 2 0 ) c 2 0 (1 0 ) 0 .6 (1 0 ) c m illio n to n s
2 2
3 8 0 m illio n to n s
c) If the total supply of coal available to the country now and in the future is 2,500
million tons, how long will it be until the total supply is exhausted?
Let us assume, we can use the total supply (2,500 million tons) of coal up to X
years from now.
x
[ 2 0 1 .2 t ] d t 2500
0
x
o r , 2 0 t 0 .6 t c 2 5 0 0
2
0
o r , 2 0 ( x ) 0 .6 ( x ) c 2 0 ( 0 ) 0 .6 ( 0 ) c 2 5 0 0
2 2
o r , 2 0 x 0 .6 x 2500
2
o r , 3 x 1 0 0 x 1 2 5 0 0 ;[ m u ltip ly in g e a c h s id e b y 5 ]
2
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 109
or,3x 250 x 150 x 12500 0
2
o r , x (3 x 2 5 0 ) 5 0 (3 x 2 5 0 ) 0
o r , (3 x 2 5 0 )( x 5 0 ) 0
250
or, x years, 50 years
3
Y e a r s c a n n o t b e n e g a tiv e , h e n c e , x 5 0 y e a r s
T h e s u p p ly w ill b e e x h a u s te d in 5 0 y e a r s
Question2: Maintenance cost on a new machine is at the rate of 100t dollars per year at
time t years.
c ( t ) 1 0 0 t d o lla rs p e r y e a r
b) How many years will it take for total maintenance cost to amount to $5,000?
Let us assume, it will take up to X years from now for total maintenance cost to
amount to $5,000.
x
[1 0 0 t ] d t 5000
0
x
or , 50t c 5000
2
0
o r , 5 0 ( x ) c 5 0 (0 ) c 5 0 0 0
2 2
or,50(x) 5000
2
100
2
or, x
o r , x 1 0 ye a rs
It will take up to 10 years from now for total maintenance cost to amount to $5,000.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 110
Question3: The fixed cost incurred when g gallons of paint are produced is $2,500 and
marginal cost at g gallons of output is
c ( g ) 0 .0 0 0 4 5 g 0 .1 8 g 2 0
2
100
T o ta l C o s t F ix e d c o s t 0 .1 8 g 2 0 ] d g
2
[ 0 .0 0 0 4 5 g
0
100
2 1 11
g g
$ 2 5 0 0 0 .0 0 0 4 5 0 .1 8 20 g c
2 1 11 0
100
$ 2 5 0 0 0 .0 0 0 1 5 g 0 .0 9 g 20 g c
3 2
0
$ 2 5 0 0 0 .0 0 0 1 5 (1 0 0 ) 0 .0 9 (1 0 0 ) 2 0 (1 0 0 ) c
3 2
0 .0 0 0 1 5 ( 0 ) 0 .0 9 ( 0 ) 2 0 ( 0 ) c
3 2
$2500 $1250 $3750
1
c ( p ) 1 ( p 1) 2
and fixed cost is $400. Find the total cost of making 399 pounds of the product.
399 1
T o ta l C o s t F ix e d c o s t [1 ( p 1) 2
]d p
0
399
1
1
399
1
( p 1) 2
$400 p $ 4 0 0 p 2 ( p 1) 2 c
1
1 0
2 0
1 1
$ 4 0 0 3 9 9 2 ( 3 9 9 1) 2 c 0 2 ( 0 1) 2 c
$400 $437 $837
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 111
Question5: Suppose that an operation provided a company income at the rate of I ( t )
1 1
I ( t ) 1 1 0 4 t 2 E ( t ) 2 0 7 t 2
The operation was started at an initial fixed expense of $2,000. Variable expense at the
rate of E ( t ) per day is incurred at time t days. From a profit maximization viewpoint, the
operation should be continued as long as income per day I ( t ) exceeds expense per day
I ( t ) . Calculate net maximum profit.
P r o f it is m a x im u m till,
I ( t ) E ( t )
1 1
o r ,1 1 0 4 t 2
20 7t 2
1 1
or , 7t 2 4t 2 90
1
o r , 3t 2 9 0
1
or,t 2 30
900 900
N e t P r o f it [ I ( t ) ] d t [ E ( t ) ] d t F ix e d c o s t
0 0
900
[ I ( t ) E ( t ) ] d t $ 2 0 0 0
0
900 1 1
[1 1 0 4 t 2 0 7 t 2 ]d t $ 2 0 0 0
2
900
1
1
900 1 2
t
[9 0 3t 2 ]d t $ 2 0 0 0 9 0 t 3 c $2000
1
0 1
2 0
900
90t 2t c $2000
1 .5
0
9 0 (9 0 0 ) 2 (9 0 0 ) c 9 0 (0 ) 2 (0 ) c $2000
1 .5 1 .5
$ 2 5, 0 0 0
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 112
Question6: Maintenance cost of newly purchased equipment is expected to cost ( 2 0 .1t )
thousand dollars per year at time t years.
a) Compute total maintenance cost during the first 6 years.
6
6 11
t 6
2
[ ( 2 0 .1 t ) ] d t 2 t 0 .1 c 2 t 0 .0 5 t c
0
0 11 0
2 ( 6 ) 0 .0 5 ( 6 ) c 2 ( 0 ) 0 .0 5 ( 0 ) c
2 2
$ 1 3 .8 th o u s a n d d o lla r s
= $ 1 3 .8 ( 1 0 0 0 ) = $ 1 3 ,8 0 0
b) Compute total maintenance cost during the second 6 years.
12
12 11
t 12
2
[ ( 2 0 .1 t ) ] d t 2 t 0 .1 c 2 t 0 .0 5 t c
6
6 11 6
2 (1 2 ) 0 .0 5 (1 2 ) c 2 ( 6 ) 0 .0 5 ( 6 ) c
2 2
$ 1 7 .4 th o u s a n d d o lla r s
= $ 1 7 .4 ( 1 0 0 0 ) = $ 1 7 ,4 0 0
c) At what time t, will the total spent on maintenance cost reach $60 thousand?
t
[ ( 2 0 .1 t ) ] d t 60
0
t
11
t
o r , 2 t 0 .1 c 60
11 0
t
o r , 2 t 0 .0 5 t c 6 0
2
0
o r , 2 ( t ) 0 .0 5 ( t ) c 2 ( 0 ) 0 .0 5 ( 0 ) c 6 0
2 2
o r , 2 t 0 .0 5 t 60
2
o r , 0 .0 5 t 2 t 6 0 0
2
o r , 0 .0 5 t 3 t t 6 0 0
2
o r , 0 .0 5 t ( t 6 0 ) 1( t 6 0 ) 0
o r , ( t 6 0 ) ( 0 .0 5 t 1) 0
E ith e r , o r,
t 60 0 0 .0 5 t 1 0
or,t 60 o r,t 2 0
t y e a r s c a n n o t b e n e g a tiv e , h e n c e a f te r 2 0 y e a r s th e
to ta l m a in te n a n c e c o s t w ill r e a c h $ 6 0 th o u s a n d .
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 113
Question7: A currently new product is expected to be sold at the rate of ( 2 0 0 .4 t )
thousand dollars per year at time t years, t<50.
a) Compute total sales during the first 10 years.
10
10 11
t 10
2
[ ( 2 0 0 .4 t ) ] d t 2 0 t 0 .4 c 2 0 t 0 .2 t c
0
0 11 0
2 0 (1 0 ) 0 .2 (1 0 ) c 2 0 ( 0 ) 0 .2 ( 0 ) c
2 2
$ 1 8 0 th o u s a n d d o lla r s
= $ 1 8 0 (1 0 0 0 )= $ 1 8 0 0 0 0
b) Compute total sales during the second 10 years.
20
20 11
t 20
2
[ ( 2 0 0 .4 t ) ] d t 2 0 t 0 .4 c 2 0 t 0 .2 t c
10
10 11 10
2 0 ( 2 0 ) 0 .2 ( 2 0 ) c 2 0 (1 0 ) 0 .2 (1 0 ) c
2 2
$ 1 4 0 th o u s a n d d o lla r s
= $ 1 4 0 (1 0 0 0 )= $ 1 4 0 0 0 0
c) At what time t, will total sales reach $375 thousand?
t
[ ( 2 0 0 .4 t )] d t 3 7 5
0
t
11
t
o r , 2 0 t 0 .4 c 375
11 0
t
o r , 2 0 t 0 .2 t c 3 7 5
2
0
o r , 2 0 t 0 .2 t c 2 0 ( 0 ) 0 .2 ( 0 ) c 3 7 5
2 2
o r , 2 0 t 0 .2 t 3 7 5
2
o r , 0 .2 t 2 0 t 3 7 5 0
2
o r , 0 .2 t 1 5 t 5 t 3 7 5 0
2
o r , 0 .2 t ( t 7 5 ) 5 ( t 7 5 ) 0
o r , ( t 7 5 )( 0 .2 t 5 ) 0
E ith e r, o r,
t 75 0 0 .2 t 5 0
or,t 75 o r, t 2 5
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 114
Question8: An industry consumes fuel at rate of ( 2 0 .6 t ) million barrels per year at
1/ 2
time t years. How much fuel will the industry consume in 25 years.
25
1
1
25 2
t 25
[ ( 2 0 .6 t ) ] d t 2 t 0 .6 1 c 2 t 0 .4 t c 0
1/ 2 1 .5
0 1
2 0
2 ( 2 5 ) 0 .4 ( 2 5 ) c 2 ( 0 ) 0 .4 ( 0 ) c
1 .5 1 .5
1 0 0 m illio n b a r r e ls
Question9: An oil rig pumps oil from a well at the rate of ( 3 6 0 7 2 t ) barrels per year
1/ 2
at time t years. How much oil will be pumped in the next 9 years.
9
1
1
9
t2 9
1/ 2 1 .5
[ ( 3 6 0 7 2 t ) ] d t 3 6 0 t 7 2 c
3 6 0 t 4 8 t c
0
1
0 1
2 0
3 6 0 (9 ) 4 8 (9 ) c 3 6 0 (0 ) 4 8(0 ) c
1 .5 1 .5
1 9 4 4 b a r r e ls
Question10: At time t years, an industry consumes fuel at the rate of ( 2 t 9 ) million
1/ 2
barrels per year. If the total supply of fuel available to the industry now and in the future
is 63 million barrels, how many years will the supply last.
t
[(2t 9 ) ]d t 6 3
1/ 2
t
1
1
1 (2t 9) 2
or, . c 63
2 1
1
2 0
t
(2t 9)
1 .5
or, c 63
3 0
(2t 9) (9 )
1 .5 1 .5
or, c c 63
3 3
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 115
(2t 9)
1 .5
or, 9 63
3
or , (2t 9) 216
1 .5
1 1
1 .5
or , (2t 9) 1 .5
2 1 6 1 .5
or , 2t 9 36
o r , t 1 3 .5 y e a r s
Question11: At time t years, sales of a currently new product are expected to be
10 1/ 2
1 0 ( 0 .5 t 1 6 )
( 0 .5 t 1 6 )
1/ 2
million dollars per year. How many years will it take for total sales to amount to $40
million?
t
1/ 2
[1 0 ( 0 .5 t 1 6 ) ]d t 4 0
0
t
1
1
( 0 .5 t 1 6 ) 2
o r , 1 0 .2 . c 40
1
1
2 0
t
o r , 4 0 ( 0 .5 t 1 6 ) c 40
0 .5
0
o r , 4 0 ( 0 .5 t 1 6 ) c 4 0 (1 6 ) c 40
0 .5 0 .5
o r , 4 0 ( 0 .5 t 1 6 ) 4 0 (1 6 ) 40
0 .5 0 .5
o r , ( 0 .5 t 1 6 ) 5
0 .5
o r , ( 0 .5 t 1 6 ) 5
0 .5 x 2 2
o r , 0 .5 t 1 6 2 5
o r , t 1 8 ye a rs
Question12: The population of a trading area is currently 100 thousand. At time t years
from now population will be growing at the rate of
20 1/ 2
2 0 ( 0 .5 t 9 )
( 0 .5 t 9 )
1/ 2
thousand per year. What will total population be 14 years from now?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 116
14
1
1
14
1/ 2 ( 0 .5 t 9 ) 2
[ 2 0 ( 0 .5 t 9 ) ] d t 2 0 .2 .
1
c
0 1
2 0
14
8 0 ( 0 .5 t 9 ) c
0 .5
0
8 0{0 .5 (1 4 ) 9} c 8 0{0 .5 ( 0 ) 9} c 80
0 .5 0 .5
P o p u la tio n w ill in c re a s e 8 0 m illio n fro m n o w .
T h e re fo re a fte r 1 4 y e a r s p o p u la tio n w ill b e 1 0 0 8 0 1 8 0 m illio n
T o ta l c o s t F ix e d c o s t [ (3 0 .0 6 t
1/ 2
)] d t
0
25
1
1
25 2
(t ) 25
1/ 2 1 .5
[ (3 0 .0 6 t )] d t 3 t 0 .0 6 c
3 t 0 .0 4 ( t ) c
0
1
0 1
2 0
3 ( 2 5 ) 0 .0 4 ( 2 5 ) c 3 ( 0 ) 0 .0 4 ( 0 ) c 80
1 .5 1 .5
T o ta l c o s t 2 8 0 $ 8 2 th o u s a n d
Question14: When t tons of steel are produced, marginal cost in dollars per ton is
( 0 .0 0 6 t 1 .2 t 5 0 ) . If fixed cost is $1,600, find the total cost of producing 100 tons.
2
100
T o ta l c o s t F ix e d c o s t [ ( 0 .0 0 6 t 1 .2 t 5 0 ) ] d t
2
100
100 2 1 11
(t ) t
[ ( 0 .0 0 6 t 1 .2 t 5 0 ) ] d t 0 .0 0 6 1 .2 50t c
2
0 2 1 11 0
100
0 .0 0 2 t 0 .6 t 5 0 t c
3 2
0
0 .0 0 2 (1 0 0 ) 0 .6 (1 0 0 ) 5 0 (1 0 0 ) c 0 .0 0 2 ( 0 ) 0 .6 ( 0 ) 5 0 ( 0 ) c
3 2 3 2
$1000
T o ta l c o s t $ 1 6 0 0 $ 1 0 0 0 $ 2 6 0 0
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 117
Do this at home: Question15: When b barrels of whiskey are produced, marginal cost in
dollars per barrel is ( 0 .0 0 4 5 b 2 1 .8 b 2 0 0 ) . If fixed cost is $4,000, find the total cost of
producing 200 barrels.
Question16: A fixed cost of $50 thousand was incurred in setting up an operation. At time
t months thereafter, the operation yields income at the rate of ( 2 0 0 .3 t ) and incurs
expense at the rate of (1 0 0 .1 t ) where both rates are in thousands of dollars per month.
a) What is the optimal time to terminate the operation?
Profit will be maximum till income per day exceeds expenses per day.
( 2 0 0 .3 t ) (1 0 0 .1 t )
o r , 0 .2 t 1 0
o r , t 5 0 y e a rs
[ ( 2 0 0 .3 t ) ] d t [ (1 0 0 .1 t ) ] d t 5 0
0 0
50 50
[ ( 2 0 0 .3 t ) (1 0 0 .1 t ) ] d t 5 0 [ ( 2 0 0 .3 t 1 0 0 .1 t ] d t 5 0
0 0
50
50 11
t 50
[ (1 0 0 .2 t ] d t 5 0 1 0 t 0 .2 c 5 0 1 0 t 0 .1 t c 5 0
2
0
0 11 0
1 0 ( 5 0 ) 0 .1( 5 0 ) c 1 0 ( 0 ) 0 .1( 0 ) c 5 0
2 2
$ 2 0 0 th o u s a n d
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 118
Question18: If new reserves of fuel are discovered at the rate of
100
0 .2 t 1
million barrels per year at time t years, find the total amount of fuel that will be
discovered in the next 25 years.
Answer:
25 25 25
100 1 1
[ 0 .2 t 1 ] d t [1 0 0
0 .2 t 1
] d t 1 0 0 . ln ( 0 .2 t 1)
0 .2
c
0
0 0
5 0 0 ln ( 0 .2 t 1) c
25
Question19: A company projects its cost of providing medical care to workers to be at the
0 .0 3 t
rate of 1 5 e thousand of dollars per year at time t years.
a) Compute total medical care cost for the next 10 years.
10 10
1 10
[1 5 e ]d t 1 5 e c 500e c
0 .0 3 t 0 .0 3 t 0 .0 3 t
0
0 0 .0 3 0
500e c 500e c $ 1 7 4 .9 3 th o u s a n d
0 .0 3 (1 0 ) 0 .0 3 ( 0 )
b) How long will it be until total cost amounts to $250 thousand?
t
[1 5 e ]d t 2 5 0
0 .0 3 t
t
1
c 250
0 .0 3 t
or , 15e
0 .0 3 0
t
or , 500e c 250
0 .0 3 t
0
1 .5
0 .0 3 t
or, e
ln (1 .5 )
0 .0 3 t
o r , ln e
o r , 0 .0 3 t ln e ln (1 .5 )
o r , 0 .0 3 t ln (1 .5 )
ln (1 .5 )
or,t 1 3 .5 1 y e a r s
0 .0 3
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 119
Do this at home: Question20: The total supply of a fuel available now and in the future is
1,000 million barrels. At time t years from now, fuel will be consumed at the rate of
0 .0 5 t
10e million barrels per year.
a) How much fuel will be consumed in the next 20 years.
b) How long will the supply of fuel last?
Do this at home: Question21: At time t years, the cost of maintaining a facility is at the
0 .0 8 t
rate of 1 2 e thousands of dollars per year.
a) Find total maintenance cost for the next 10 years.
b) How long will it take for total maintenance cost to reach $300 thousand?
Do this at home: Question22: At time t years, interest on a bank account is at the rate of
0 .0 6 t
600e dollars per year.
a) What will be the total interest accumulation in 12 years?
b) How long will it take for total interest accumulation to reach $5,000?
0 .2 t
Question24: Sales of wheat at time t years are projected to be at the rate of 5 1 5 e
million pounds per year. Find total sales in the next 5 years?
5 5
0 .2 t 0 .2 t 1 0 .2 t
5
[5 1 5 e ]d t 5 t 1 5 e c 5t 7 5e c
0
0 0 .2 0
0 .2 ( 5 ) 0 .2 ( 0 )
5 (5 ) 7 5 e c 5(0 ) 7 5e c 7 2 .4 1 m illio n p o u n d s
Do this at home: Question25: Sales of milk at time t years are projected to be at the rate
0 .4 t
of 1 0 2 0 e million gallons per year. Find total sales in the next 5 years?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 120
Consumers’ Surplus: Consumers’ Surplus is the amount of dollars left in the hands of
consumers due to the market settling at an equilibrium point because of competition; it is
the difference between what consumers expected to pay and what they actually paid.
Price per unit
qm
Pd(q)
[P d
( q )] d q p m q m
0
Consumers’
Surplus
E (qm, pm)
Demand
Curve
q
0 qm
Pd ( q ) 2 5 0 .6 q 2
Pm 2 5 0 .6 ( 6 2 5 ) 2 $ 1 0 p e r g a llo n
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 121
625 1
T h e n c o n s u m e r s ' S u r p lu s = [ 2 5 0 .6 q 2 ] d q 1 0 ( 6 2 5 )
0
625
1
1
625
2 3
q
2 5 q 0 .6 c 6 2 5 0 2 5 q 0 .4 q 2 c 6250
1
1 0
2 0
2 5 ( 6 2 5 ) 0 .4 ( 6 2 5 ) c 2 5 ( 0 ) 0 .4 ( 0 ) c 6250
1 .5 1 .5
$ 3 1 2 5 th o u s a n d
= $ 3, 1 2 5 , 0 0 0
Pd ( q ) 1 1 0 0 .5 q
Where q is in thousands of tons and Pd ( q ) is price of SAE 90 lubricating oil in dollars per
ton. Compute consumers’ surplus.
Pm 1 1 0 0 .5 (1 0 0 ) $ 6 0 p e r to n
100
T h e n c o n s u m e r s ' S u r p lu s = [1 1 0 0 .5 q ] d q 6 0 (1 0 0 )
0
100
11
q 100
1 1 0 q 0 .5 c 6 0 0 0 1 1 0 q 0 .2 5 q c 6000
2
0
11 0
1 1 0 (1 0 0 ) 0 .2 5 (1 0 0 ) c 1 1 0 ( 0 ) 0 .2 5 ( 0 ) c 6 0 0 0
2 2
$ 2 5 0 0 th o u s a n d
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 122
Do this at home: Question28: The demand function for a product is
Pd ( q ) 7 5 0 .6 q where q is in millions of barrels and Pd ( q ) is price of the
product in dollars per barrel. Market equilibrium occurs at a demand of 100 million
barrels. Compute consumers’ surplus.
80
Pd ( q )
( 0 .1 q 0 .2 )
2
where q is in millions of tons and Pd ( q ) is price of the product in dollars per ton. Market
equilibrium occurs at a demand of 18 million tons. Compute consumers’ surplus.
50
Pd ( q )
0 .5 q 1
where q is in millions of pounds and Pd ( q ) is price of the product in dollars per pound.
Market equilibrium occurs at a demand of 18 million pounds. Compute consumers’
surplus.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 123
Producers’ Surplus: Producers’ Surplus is the amount of additional dollars received by
producers due to the market settling at an equilibrium point because of competition; it is
the difference between what producers actually receive and what they expected to receive.
Producers’
Surplus
E (qm, pm)
Supply
Curve
q
0 qm
Ps ( q ) 2 .5 0 .3 q 2
Pm 2 .5 0 .3 ( 6 2 5 ) 2 $ 1 0 p e r g a llo n
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 124
625 1
T h e n p r o d u c e r s ' S u r p lu s =1 0 ( 6 2 5 ) [ 2 .5 0 .3 q 2 ] d q
0
625
1
1
625
2 3
q
1 0 ( 6 2 5 ) 2 .5 q 0 .3 c 6 2 5 0 2 .5 q 0 .2 q 2 c
1
1 0
2 0
6 2 5 0 2 .5 ( 6 2 5 ) 0 .2 ( 6 2 5 ) c 2 .5 ( 0 ) 0 .2 ( 0 ) c
1 .5 1 .5
$ 1 5 6 2 .5 th o u s a n d
= $ 1, 5 6 2 , 5 0 0
Ps ( q ) 5 0 .2 q
where q is in millions of tons and Ps ( q ) is price of the product in dollars per ton. Market
equilibrium occurs at a demand of 50 million tons. Compute producers’ surplus.
Ps ( q ) ( 4 0 .2 q ) 2
where q is in thousands of pounds and Ps ( q ) is price of the product in dollars per pound.
Market equilibrium occurs at a demand of 40 thousand pounds. Compute producers’
surplus.
where q is in thousands of gallons and Ps ( q ) is price of the product in dollars per gallon.
Market equilibrium occurs at a demand of 20 thousand gallons. Compute producers’
surplus.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 125
Question36: The supply and demand functions for SAE 90 lubricating oil are
Ps ( q ) 1 0 0 .5 q and Pd ( q ) 1 1 0 0 .5 q ,where q is in thousands of tons and P ( q )
is price of SAE 90 lubricating oil in dollars per ton.
o r , 1 1 0 0 .5 q 1 0 0 .5 q
o r , 0 .5 q 0 .5 q 1 1 0 1 0
o r , q 1 0 0 th o u s a n d s o f to n s
E q u i li b r i u m P r i c e , Pm 1 1 0 0 .5 (1 0 0 ) $ 6 0 p e r t o n
E q u i li b r i u m p o i n t ( q m , p m ) = (1 0 0 , 6 0 )
b) Compute consumers’ surplus.
100
T h e n c o n s u m e r s ' S u r p lu s = [1 1 0 0 .5 q ] d q 6 0 (1 0 0 )
0
100
11
q 100
1 1 0 q 0 .5 c 6 0 0 0 1 1 0 q 0 .2 5 q c 6000
2
0
11 0
1 1 0 (1 0 0 ) 0 .2 5 (1 0 0 ) c 1 1 0 ( 0 ) 0 .2 5 ( 0 ) c 6 0 0 0
2 2
$ 2 5 0 0 th o u s a n d
100
T h e n P ro d u c e rs ' S u rp lu s = 6 0 (1 0 0 ) [1 0 0 .5 q ] d q
0
100
11
q 100
6 0 0 0 1 0 q 0 .5 c 6 0 0 0 1 0 q 0 .2 5 q c
2
0
11 0
6 0 0 0 1 0 (1 0 0 ) 0 .2 5 (1 0 0 ) c 1 0 ( 0 ) 0 .2 5 ( 0 ) c
2 2
$ 2 5 0 0 th o u s a n d
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 126
Do this at home: Question37: The supply and demand functions for a product are
Ps ( q ) 1 0 0 .1 q and Pd ( q ) 1 1 0 0 .2 q ,where q is in thousands of tons and P ( q )
is price of the product in dollars per ton.
Do this at home: Question38: The supply and demand functions for a product are
Ps ( q ) 1 0 .0 2 q and Pd ( q ) 6 0 .0 8 q ,where q is in millions of pounds and P ( q )
is price of the product in dollars per pound.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 127
Applied Mathematics
3 1 2 1 5 2 3 1 1 5 2 2
1 4 1 3 2 4 1 3 4 2 1 4
Question9: 4 4 0
2 6 5
Question11:
1 3 2 2 5 3 4 12 8 6 15 9
4 3
5 1 3 1 2 1 20 4 12 3 6 3
Question12:
1 23 0 5
( 2 x 2 )( 2 x 3 ) ( 2 x 3 )
3 51 2 0
1 x 3 2 x1 5 1x0 2 x 2 4 1x5 2 x0 5
3 x 3 5 x1 1 4 3x0 5 x 2 10 3 x5 5 x0 15
5 4 5
14 10 15
Question13:
1 2
5 6 7 0
3 (1 x 3 ) ( 3 x 2 ) (1 x 2 )
3 1
5 x1 6 x 0 7 x 3 2 6 5 x 2 6 x 3 7 x1 3 5
26 35
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 128
Question21: Interest at the rates 0.06, 0.07 and 0.08 is earned on respective investments of
$3,000, $2,000 and $4,000.
a) Express the total amount of interest earned as the product of a row vector and a
column vector.
3000
0 .0 6 0 .0 7 0 .0 8 2 0 0 0
4000
b) Compute the total interest by matrix multiplication.
3000
0 .0 6 0 .0 7 0 .0 8 2 0 0 0 0 .0 6 x 3 0 0 0 0 .0 7 x 2 0 0 0 0 .0 8 x 4 0 0 0
4000
$640
Question22: Two canned meat spreads, Regular and Superior, are made by grinding
beef, pork, and lamb together. The numbers of pounds of each meat in a 15 pound batch
of each brand are as follows:
Pounds of
Brand
Beef Pork Lamb
Superior 8 2 5
Regular 4 8 3
a) Suppose we wish to make 10 batches of Superior and 20 of Regular. Multiply the
meat matrix in the table and the batch vector (10 20) and interpret the result.
8 2 5
1 0 20
4 8 3
1 0 x 8 2 0 x 4 1 6 0 10 x 2 20 x8 180 10 x5 20 x3 110
1 6 0 180 110
We will need 160 pounds of Beef, 180 pounds pork and 110 pounds of lamb to
process all those bathces.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 129
b) Suppose that the per pound prices of beef, pork, and lamb are $2.50, $2.00 and
$3.00, respectively. Multiply the price vector and the meat matrix and interpret
the results.
8 2 5
2 .5 2 3 (C o s t x T y p e o f M e a t )(B ra n d x T y p e o f M e a t)
4 8 3
(1 x 3 )( 2 x 3 ) N o t p o s s ib le
8 4
2 .5 2 3 2
8 (C o s t x T y p e o f M e a t )(T y p e o f M e a t x B ra n d )
5 3
(1 x 3 )(3 x 2 ) (1 x 2 ) (C o s t x B ra n d )
2 .5 x 8 2 x 2 3 x 5 3 9 2 .5 x 4 2 x 8 3 x 3 3 5
39 35
The total cost of a batch of Superior is $39 and a batch of Regular is $35
Question23: Three jewellery salespeople each regularly buy a certain quantity of watches,
rings, necklaces, and ear-rings from their respective wholesale supplier and sell certain
quantities of each item to a retailer. Their respective buying and selling transactions
during a particular month are given by the following vectors:
B1 1 0 20 30 4 0 B 2 1 5 25 35 45 B3 20 10 45 35
S1 8 20 25 3 5 S 2 1 5 20 30 4 0 S 3 1 5 10 40 35
where the first entry in each vector represents the number of watches, the second entry
the number of rings, the third entry the number of necklaces, the forth entry the number
of sets of earrings. The buying prices were $50 per watch, $40 per ring, $25 per necklace,
and $10 per set of earrings; whereas the selling prices were, respectively, $75, $55, $30,
and $15.
a) Write the buying prices as a column vector B and the selling prices as a column
vector S.
50 75
40 55
B S
25 30
1 0 1 5
b) Find the amount of revenue each salesperson expended in buying.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 130
50
10 20 30 40 1 0 x 5 0 2 0 x 4 0 3 0 x 2 5 4 0 x1 0 2 4 5 0
4 0
1 5 x 5 0 2 5 x 4 0 3 5 x 2 5 4 5 x1 0 3 0 7 5
15 25 35 45
25
20 3 5
10 45 2 0 x 5 0 1 0 x 4 0 4 5 x 2 5 3 5 x1 0 2 8 7 5
10
2450
3075
2875
Salespeople expended $2450, $3075 and $2875 respectively in buying.
2975
3725
3400
Salespeople collected $2975, $3725 and $3400 respectively in selling.
d) Find the amount of profit each salesperson realized (assuming, for simplicity, that
the unsold jewellery can not be returned or otherwise sold).
2975 2450 2975 2450 525
P r o f it 3 7 2 5 3 0 7 5 3 7 2 5 3 0 7 5 6 5 0
3400 2875 3400 2875 525
Determinant
A 1x5 3 x 2 1 B 1 3 x1 3 x 4 1
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 131
2 3 1
D e te rm in a n t o f A 1 4 2 is
5 6 4
A 2{ ( 4 x 4 ) ( 6 x 2 )} 3{ (1 x 4 ) (5 x 2 )} 1{ (1 x 6 ) ( 4 x 5 )} 1 2
Inverse Matrix
Gauss-Jordan Method:
3 2
F in d th e in v e r s e o f A
1 1
3 2 1 0 1 0 1 2
A u g m e n te d m a tr ix , A I [ R 1 R 1 R 2 ( 2 )
1 1 0 1 1 1 0 1
1 0 1 2
[ R 2 R 2 R 1 ]
0 1 1 3
1 2
A
1
1 3
7 3
F in d th e in v e r s e o f A
2 1
7 3 1 0 1 0 1 3
A u g m e n te d m a tr ix , A I [ R 1 R 1 R 2 ( 3 ) ]
2 1 0 1 2 1 0 1
1 0 1 3
[ R 2 R 2 R 1 ( 2 ) ]
0 1 2 7
1 3
A
1
2 7
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 132
0 1
F in d th e in v e r s e o f A
2 3
0 1 1 0 2 3 0 1
A u g m e n te d m a tr ix , A I [ R 1 R 2 , R 2 R 1 ]
2 3 0 1 0 1 1 0
1 1 .5 0 0 .5 1 0 1 .5 0 .5
1
[ R R 1
/ 2 ] [ R 1 R 1 R 2 ( 1 .5 ) ]
0 1 1 0 0 1 1 0
1 .5 0 .5
A
1
1 0
0 1
D e te rm in a n t o f A , D 0 x 3 2 x1 2
2 3
A1 1 A1 2
A21 A22
A1 1 3 A1 2 2
A21 1 A22 0
3 2
T h e c o f a c to r m a tr ix , A
c
1 0
S te p 3 : F in d th e a d jo in t m a tr ix ( tr a n s p o s e o f c o f a c to r m a tr ix )
3 1
T h e a d jo in t m a tr ix , A A
T
c
adj
2 0
S te p 4 : F in d th e in v e r s e m a tr ix
3 1
1
T h e in v e r s e m a tr ix , A
1 1 3
A
T
1
2
c
2
D 2 2 0
1 0
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 133
2 3 1
1 4 2
Find the inverse matrix of
5 6 4
Step 1: Find the determinant
D 2{ ( 4 x 4 ) ( 6 x 2 )} 3{ (1 x 4 ) (5 x 2 )} 1{ (1 x 6 ) ( 4 x 5 )} 1 2
A1 1 A1 2 A1 3
A21 A22 A23
A A3 2 A 3 3
31
4 2 1 2 1 4
A1 1 4 A1 2 (6) 6 A1 3 14
6 4 5 4 5 6
3 1 2 1 2 3
A21 6 A22 3 A23 ( 3) 3
6 4 5 4 5 6
3 1 2 1 2 3
A3 1 2 A3 2 3 A3 3 5
4 2 1 2 1 4
4 6 14
T h e c o f a c to r m a tr ix , A 6
c
3 3
2 3 5
S te p 3 : F in d th e a d jo in t m a tr ix ( tr a n s p o s e o f c o f a c to r m a tr ix )
4 6 2
T h e a d jo in t m a tr ix , A A
T
3
c
6 3
adj
14 3 5
S te p 4 : F in d th e in v e r s e m a tr ix
1 1 1
3 2 6
4 6 2
1 1 1 1 1
T h e in v e r s e m a tr ix , A A
T
1
3
c
6 3
D 1 2 2 4 4
14 3 5
7 1 5
6 4 12
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 134
3 2 1
1 1 0
Find the inverse matrix of
2 0 1
A1 1 A1 2 A1 3
A21 A22 A23
A A3 2 A 3 3
31
1 0 1 0 1 1
A1 1 1 A1 2 1 A1 3 2
0 1 2 1 2 0
2 1 3 1 3 2
A21 2 A22 1 A23 4
0 1 2 1 2 0
2 1 3 1 3 2
A31 1 A3 2 1 A3 3 5
1 0 1 0 1 1
1 1 2
T h e c o f a c to r m a tr ix , A 2 1
c
4
1 1 5
S te p 3 : F in d th e a d jo in t m a tr ix ( tr a n s p o s e o f c o f a c to r m a tr ix )
1 2 1
T h e a d jo in t m a tr ix , A A
T
1 1 1
c
adj
2 4 5
S te p 4 : F in d th e in v e r s e m a tr ix
1 2 1
3 3 3
1 2 1
1 1 1 1 1
T h e in v e r s e m a tr ix , A A
T
1
1 1
c
1
D 3 3 3 3
2 4 5
2 4 5
3 3 3
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 135
7 3 2 2 9 4 1 1
Find the inverse matrix of 1) 2) 3) 4)
2 1 3 5 2 1 1 2
1 3 2 5 0 1 0 3
5) 6) 7) 8)
2 0 3 4 2 3 2 5
2 8 11 2 2 3 1 1 1 2 1 4
9) 1 5 7 10) 0 1 1 11) 1 1 1 12) 3 0 2
1 2 3 4 0 3 2 2 2 1 2 3
5 1
1 3 4 2 1 4 2 1
Answers: 1) 2) 3) 4)
2 7 3 1
2 9 1 1
4 2
1 4 5 5 1
0 3 1
2
7 7
6 2
5) 1 6) 7) 2 2
8) 1
1 3 2
1 0 0
3 6 7 7 3
4 5 2
3 1
3 9 9 9
1 2 1 2 2
7 2 8
9) 4 5 3 10) 2 3 1 11) inverse does not exist 12)
9 9 9
3 2
4 2 4 1
2 1 1
3 3 3
2 x1 3 x 2 1 7
x1 2 x 2 1 0
2 3 x1 1 7
1 2 x2 10
x1 2 3 17
or,
x
2 1 2 10
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 136
2 3 17 1 1 7
[ R 1 R 1 R 2 ]
1 2 10 1 2 10
1 1 7
[ R 2 R 2 R 1 ]
0 1 3
1 0 4
[ R 1 R 1 R 2 ]
0 1 3
x1 4
x2 3
i .e . x 1 4 , x2 3
7 x1 3 x 2 5
2 x1 x 2 7
7 3 x1 5
2 1 x2 7
x1 7 3 5
or,
x
2 2 1 7
7 3 5 1 0 16
[ R 1 R 1 R 2 ( 3 ) ]
2 1 7 2 1 7
1 0 16
[ R 2 R 2 R 1 ( 2 ) ]
0 1 39
x1 1 6
x
2 3 9
i .e . x 1 1 6 , x2 39
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 137
Find the solution:
2 x1 2 x 2 3 x 3 3
x2 x3 2
x1 x 2 x 3 4
2 2 3 x1 3
0 1 1 x2 2
1 1 1 x 3 4
x1 2 2 3 3
or , x2 0 1 1 2
x 1 1 1 4
3
2 2 3 3 1 1 2 1
0 1 1 2 0 1 1 2 [ R 1 R 1 R 3 ]
1 1 1 4 1 1 1 4
1 1 2 1
0 1 1 2 [ R 3 R 1 R 3 ]
0 0 1 5
1 1 2 1
0 1 0 7 [ R 2 R 2 R 3 ]
0 0 1 5
1 0 2 8
0 1 0 7 [ R 1 R 1 R 2 ]
0 0 1 5
1 0 0 2
0 1 0 7 [ R 1 R 1 R 3 ( 2 ) ]
0 0 1 5
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 138
x1 2
x2 7
x 5
3
i .e . x 1 2 , x2 7, x3 5
x1 2 x 2 0 x 3 3 0
x1 x 2 x 3 2 0
1 1 2 x1 2 0 1 1 2 x1 20
1 2 0 x2 3 0 , h e re , A 1 2 0 , X x2 , B 30
1 1
1 x3 2 0 1 1
1
x3 20
o r , A.X B
1
or, X A .B
1 1 2
F ir s t w e n e e d to f in d th e in v e r s e m a tr ix o f A 1 2 0
1 1 1
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 139
Step 1: Find the determinant
D 1( 2 0 ) 1(1 0 ) 2 (1 2 ) 1
Step 2: Find the cofactors and cofactor matrix:
2 0 1 0 1 2
A1 1 2 A1 2 1 A1 3 1
1 1 1 1 1 1
1 2 1 2 1 1
A21 1 A22 1 A23 0
1 1 1 1 1 1
1 2 1 2 1 1
A3 1 4 A32 2 A33 1
2 0 1 0 1 2
2 1 1
T h e c o f a c to r m a tr ix , A 1 1
c
0
4 2 1
S te p 3 : F in d th e a d jo i n t m a tr ix ( tr a n s p o s e o f c o f a c to r m a tr ix )
2 1 4
T h e a d jo in t m a tr ix , A A
T
1 1
c
2
adj
1 0 1
S te p 4 : F in d th e in v e r s e m a tr ix
2 1 4 2 1 4
1
T h e in v e r s e m a tr ix , A A
T
1
1 1 1 2 1 2
c
1
D
1 0 1 1 0 1
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 140
Using Cramer’s Rule:
x1 x 2 2 x 3 2 0
x1 2 x 2 0 x 3 3 0
x1 x 2 x 3 2 0
1 1 2
D 1 2 0 1( 2 0 ) 1(1 0 ) 2 (1 2 ) 1
1 1 1
20 1 2
D x1 3 0 2 0 2 0 ( 2 0 ) 1( 3 0 0 ) 2 ( 3 0 4 0 ) 1 0
20 1 1
1 20 2
D x2 1 30 0 1( 3 0 0 ) 2 0 (1 0 ) 2 ( 2 0 3 0 ) 1 0
1 20 1
1 1 20
D x3 1 2 3 0 1( 4 0 3 0 ) 1( 2 0 3 0 ) 2 0 (1 2 ) 0
1 1 20
D x1 10
x1 10
D 1
D x2 10
x2 10
D 1
D x3 0
x3 0
D 1
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 141
Find the solution:
8 x1 5 x 2 2 8 5
D 16 15 1
3 x1 2 x 2 1 3 2
2 5 8 2
D x1 4 5 1 D x2 86 2
1 2 3 1
D x1 1 D x2 2
x1 1 x2 2
D 1 D 1
Find the solution for the following (using Gauss-Jordan Method, Inverse Matrix Method,
and Cramer’s rule method)
4 x1 3 x 2 2 6 x1 8 x 2 3
1) 9 x1 7 x 2 3 2) 2 x1 3 x 2 1
3 x1 0 x 2 5 x 3 3 7 x1 3 x 2 1
2 x1 2 x 2 5 x 3 7 3 x2 5 x3 2
3) 4)
0 x1 x 2 x 3 2 x1 x 2 x 3 3
x1 2 x 2 x 3 3
2 x1 x 2 x 3 0
5)
3 x1 2 x 3 3
Q3) ( x1 , x 2 , x 3 ) ( 6 , 5 , 3 ) Q4) ( x1 , x 2 , x 3 ) ( 3 7 , 8 6 , 5 2 )
Q5) ( x 1 , x 2 , x 3 ) ( 3, 0 , 6 )
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 142
Applied Mathematics
Drawing Graph:
x y x y x y
0 1100 0 900 0 2000
2250 0 1000 0
1375 0
x y
0 400
800 0 Division C
x y Division A
0 2000
E Contribution
1000 0 Line
F
Feasible G Division B
Region
H X
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 143
The optimum point is found by drawing an example of an iso-contribution line on the
diagram (any value of Z will do) and then placing a ruler against it. Then, by moving the
ruler away from the origin (in the case of a maximization problem) or towards the origin
(in the case of a minimization problem) by keeping it parallel to the iso-contribution line,
the last corner it touches of the feasible region represents the optimum solution.
8 x 1 0 y 1 1, 0 0 0
4 x 10 y 9, 000
or, 4 x 2000
or, x 500
and , y 700
The optimum production plan is to produce 500 units of product X and 700 units of
product Y.
Slack is the amount by which a resource is under-utilized. It will occur when the optimum
point does not fall on a given resource line. Slack is important because unused resources
can be allocated for other use.
The shadow price of a resource can be found by calculating the increase in value (extra
contribution or extra profit) which would be created by having available one additional
unit of a limiting resource at its original cost.
Shadow price therefore represents the maximum premium that the firm should be willing
to pay for one extra unit of each constraint.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 144
Shadow price calculation:
Adding one extra hour for Division A, while leaving the other critical constraint
unchanged.
8 x 1 0 y 1 1, 0 0 1
4 x 10 y 9, 000
or, 4 x 2001
o r , x 5 0 0 .2 5
a n d , y 6 9 9 .9
The increase of $0.20 is the shadow price or the premium that the company would be
willing to pay for each extra hour in Division A.
Similarly we can calculate shadow price for Division B. There is no shadow price for
Division C as slack is available there.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 145
Objective Cell (Max)
Original
Cell Name Value Final Value
$C$2 Max. Contribution z 0 7600
Variable Cells
Original
Cell Name Value Final Value Integer
$A$2 x 0 500 Contin
$B$2 y 0 700 Contin
Constraints
Cell Name Cell Value Formula Status Slack
Not
$B$11 Non-neg 500 $B$11>=0 Binding 500
Not
$B$13 Non-neg 700 $B$13>=0 Binding 700
$B$5 Division A 11000 $B$5<=11000 Binding 0
$B$7 Division B 9000 $B$7<=9000 Binding 0
Not
$B$9 Division C 10200 $B$9<=12000 Binding 1800
Binding: Critical Constraints (resource or hours fully utilized)
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$B$11 Non-neg 500 0 0 500 1E+30
$B$13 Non-neg 700 0 0 700 1E+30
$B$5 Division A 11000 0.2 11000 750 2000
$B$7 Division B 9000 0.6 9000 2000 1000
$B$9 Division C 10200 0 12000 1E+30 1800
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 146
Simplex Method
8 x 1 0 y 1 1, 0 0 0
Constraints: 4 x 1 0 y 9 , 0 0 0
12 x 6 y 12, 000
0 8 x 1 0 y 1 S 1 0 S 2 0 S 3 1 1, 0 0 0
0 4 x 1 0 y 0 S1 1S 2 0 S 3 9 , 0 0 0
0 12 x 6 y 0 S1 0 S 2 1S 3 1 2 , 0 0 0
z 4x 8y 0 S1 0 S 2 0 S 3 0
S1 0 4 0 1 -1 0 2000 R 1 R 1 R 2 ( 1 0 )
Y 0 0.4 1 0 0.1 0 900
S3 0 9.6 0 0 -0.6 1 6600 R 3 R 3 R 2 ( 6 )
Z 1 -0.8 0 0 0.8 0 7200 R 4 R 4 R 2 (8 )
Here, column X is the entering variable column now. Leaving variable or point row is
S1 because 2000/4 <6600/9.6< 900/0.4, hence X will replace S1.
X 0 1 0 0.25 -0.25 0 500 R 1 R 1 / 4
Y 0 0.4 1 0 0.1 0 900
S3 0 9.6 0 0 -0.6 1 6600
Z 1 -0.8 0 0 0.8 0 7200
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 147
Z X Y S1 S2 S3 value Row Operation
X 0 1 0 0.25 -0.25 0 500
Y 0 0 1 -0.1 0 0 700 R 2 R 2 R 1 ( 0 .4 )
S3 0 0 0 -2.4 -3 1 1800 R 3 R 3 R 1 ( 9 .6 )
The optimum production plan is to produce 500 units of product X and 700 units of
product Y. The maximum contribution we can get =$7,600. Shadow price for Division A
and B are $0.2 and $0.6 respectively. Division C: slack- 1800 hours available or no
shadow price.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 148
Question2: Partex Furniture manufactures office furniture and home furniture and each
of these products passes through a cutting process and assembly process. One office
furniture, which makes average contribution of $50, takes six hours cutting time and four
hours assembly time; while one home furniture makes an average contribution of $40,
and takes three hours cutting time and eight hours assembly time. There is a maximum of
36 cutting hours and 48 assembly hours available each week. Cutters are paid $10 per
hour and assembly workers $15 per hour. Find the optimal production plan (maximize
contribution) for the company including shadow prices for cutting hours and assembly
hours.
C u ttin g h o u r s , 6 x 3 y 3 6
Constraints:
A s s e m b ly h o u r s , 4 x 8 y 4 8
Drawing Graph:
x y x y x y
0 12 0 6 0 5
6 0 12 0 4 0
Y
Cutting Hours
Feasible
Region
A Contribution
Line
B
Assembly
Hours
C
X
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 149
The optimum point is found by drawing an example of an iso-contribution line on the
diagram (any value of Z will do) and then placing a ruler against it. Then, by moving the
ruler away from the origin (in the case of a maximization problem) by keeping it parallel
to the iso-contribution line, the last corner it touches of the feasible region represents the
optimum solution.
The optimum corner is B, the intersection of cutting hours and assembly hours.
6 x 3 y 36
4 x 8 y 48
or, x 4
and , y 4
The optimum production plan is to produce 4 units of product X and 4 units of product
Y.
The optimum corner B is found in the intersection of cutting hours and assembly hours.
Therefore cutting hours and assembly hours are fully utilized and are referred to as
critical constraints. We can calculate shadow prices for the critical constraints. There is
no slack or unutilized resources available.
Adding one extra hour for cutting, while leaving the other critical constraint unchanged.
6 x 3 y 37
4 x 8 y 48
o r , x 4 .2 2
a n d , y 3 .8 9
The increase of $6.6 is the shadow price or the premium that the company would be
willing to pay for each extra hour of cutting.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 150
Microsoft Solver Outputs:
Variable Cells
Original Final
Cell Name Value Value Integer
$A$2 x 0 4 Contin
$B$2 y 0 4 Contin
Constraints
Cell Name Cell Value Formula Status Slack
Not
$B$11 Non-neg 4 $B$11>=0 Binding 4
$B$5 Cutting Hours 36 $B$5<=36 Binding 0
$B$7 Assembly Hours 48 $B$7<=48 Binding 0
Not
$B$9 Non-neg 4 $B$9>=0 Binding 4
Binding: Critical Constraints (resource or hours fully utilized)
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$B$11 Non-neg 4 0 0 4 1E+30
$B$5 Cutting Hours 36 6.666666667 36 36 18
$B$7 Assembly Hours 48 2.5 48 48 24
$B$9 Non-neg 4 0 0 4 1E+30
Shadow price for cutting hours=$6.67 and for Assembly hours=$2.5
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 151
Simplex Method
C u ttin g h o u r s , 6 x 3 y 3 6
Constraints:
A s s e m b ly h o u r s , 4 x 8 y 4 8
0 6x 3 y 1 .S 1 0 S 2 3 6
0 4x 8 y 0 S 1 1 .S 2 4 8
Z 5 0 x 4 0 y 0 S 1 0 .S 2 0
S2 0 1 2 0 0.25 12 R 2 R 2 / 4
Z 1 -50 -40 0 0 0
X 0 1 0.5 0.167 0 6
S2 0 0 1.5 -0.167 0.25 6 R 2 R 2 R 1
X 0 1 0 0.222 -0.083 4 R 1 R 1 R 2 ( 0 .5 )
Y 0 0 1 -0.111 0.167 4
Z 1 0 0 6.67 2.5 360 R 3 R 2 (1 5 ) R 3
The optimum production plan is to produce 4 units of product X and 4 units of product
Y. The maximum contribution we can get =$360. Shadow price for cutting hours and
assembly hours are $6.67 and $2.5 respectively.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 152
Question3: Millennium Cycle manufactures mountain bike and racing bike and apart
from raw materials it requires a mix of skilled and semi-skilled labours. The supply of
skilled and semi-skilled labour is limited to 2000 hours/month and 2500 hours/month
respectively. One mountain bike needs 10 hours of skilled and 5 hours of semi-skilled
labour hours while one racing bike needs 10 hours of skilled and 25 hours of semi-skilled
labour hours. The company receives average contribution of $50 from Mountain bikes
and $40 from racing bikes while skilled labours are paid $15 per hour and semi-skilled
labours are paid $10 per hour. At present, maximum demand for mountain bike and
racing bike is expected to be 150 units/month and 80 units/month respectively. Find the
optimal production plan (maximize contribution) for the company including shadow
prices for skilled labours and semi-skilled labours.
S k ille d L a b o u r , 1 0 x 1 0 y 2 0 0 0
S e m i-s k ille d L a b o u r , 5 x 2 5 y 2 5 0 0
M o u n ta in B ik e , x 1 5 0
Constraints:
R a c in g B ik e , y 8 0
N o n -n e g a tiv ity , x 0 ; y 0
Drawing Graph:
x y x y x y
0 200 0 100 0 50
200 0 500 0 40 0
Y
Feasible Region=ABCDE
Skilled
x≤150
y≤80
B C
Semi-skilled
D
CL E
X
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 153
The optimum point is found by drawing an example of an iso-contribution line on the
diagram (any value of Z will do) and then placing a ruler against it. Then, by moving the
ruler away from the origin (in the case of a maximization problem) by keeping it parallel
to the iso-contribution line, the last corner it touches of the feasible region represents the
optimum solution.
The optimum corner (last corner) is D, the intersection of skilled labour and x≤150.
x 150
10 x 10 y 2000
and , y 50
The optimum production plan is to produce 150 units of mountain bikes and 50 units of
racing bike.
The optimum corner D is found in the intersection of skilled labour and x≤150. Therefore
skilled labours are fully utilized and are referred to as critical constraints. We can
calculate shadow price for the skilled labour. There is slack or unutilized hours available
for semi-skilled labours; hence no shadow price for semi-skilled labour.
Adding one extra hour for skilled labour, while leaving the other constraint unchanged.
x 150
10 x 10 y 2001
a n d , y 5 0 .1
The increase of $4 is the shadow price or the premium that the company would be willing
to pay for each extra hour of skilled labour.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 154
Microsoft Solver Outputs:
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$B$11 y 50 0 80 1E+30 30
$B$14 Non-neg 150 0 0 150 1E+30
$B$16 Non-neg 50 0 0 50 1E+30
$B$5 Skilled Labours 2000 4 2000 200 500
$B$7 Semi-skilled Labours 2000 0 2500 1E+30 500
$B$9 x 150 10 150 50 25
Shadow price for skilled labours =$4
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 155
Simplex Method
S k ille d L a b o u r , 1 0 x 1 0 y 2 0 0 0
S e m i-s k ille d L a b o u r , 5 x 2 5 y 2 5 0 0
M o u n ta in B ik e , x 1 5 0
Constraints:
R a c in g B ik e , y 8 0
N o n -n e g a tiv ity , x 0 ; y 0
0 1 0 x 1 0 y 1S1 0 S 2 0 S 3 0 S 4 2, 0 0 0
0 5x 2 5 y 0 S1 1S 2 0 S 3 0 S 4 2 , 5 0 0
0 1x 0y 0 S1 0 S 2 1S 3 0 S 4 1 5 0
0 0x 1y 0 S1 0 S 2 0 S 3 1S 4 8 0
z 50 x 40 y 0 S1 0 S 2 0 S 3 0 S 4 0
S2 0 0 25 0 1 -5 0 1750 R 2 R 2 R 3 ( 5 )
X 0 1 0 0 0 1 0 150
S4 0 0 1 0 0 0 1 80
Z 1 0 -40 0 0 50 0 7500 R 5 R 5 R 3 (5 0 )
Here, column Y is the entering variable column now. Leaving variable or point row is S1
because 500/10 <1750/25< 80/1, hence Y will replace S1.
Y 0 0 1 0.1 0 -1 0 50 R 1 R 1 / 1 0
S2 0 0 25 0 1 -5 0 1750
X 0 1 0 0 0 1 0 150
S4 0 0 1 0 0 0 1 80
Z 1 0 -40 0 0 50 0 7500
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 156
Z X Y S1 S2 S3 S4 value Row Operation
Y 0 0 1 0.1 0 -1 0 50 R 1 R 1 / 4
S2 0 0 0 -2.5 1 20 0 500 R 2 R 2 R 1 ( 2 5 )
X 0 1 0 0 0 1 0 150
S4 0 0 0 -0.1 0 1 1 30 R 4 R 4 R 1
Z 1 0 0 4 0 10 0 9500 R 5 R 5 R 1 ( 4 0 )
The optimum production plan is to produce 150 units of product X (Mountain Bike) and
50 units of product Y (Racing Bike). The maximum contribution we can get=$9,500.
Shadow price for skilled labour is $4 while semi-skilled labour has a slack of 500 hours
available, hence no shadow price.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 157
Question4: ACI Agro can buy two types of fertilizer which contain the following
percentage of chemicals:
For a certain crop ACI need minimum 100 kg of Nitrates, 50 kg of Phosphates and 40 kg
of Potash. ACI currently buys 1000 kg of each type of fertilizer where type 1 costs $10/kg
and type 2 costs $5/kg. Find the optimal purchase plan (minimize cost) for the company.
N itr a te s , 0 .1 8 x 0 .0 3 y 1 0 0
x y
P h o s p h a te s , 0 .0 5 x 0 .0 2 y 5 0 0 4000
Constraints: P o ta s h , 0 .0 2 x 0 .0 5 y 4 0 2000 0
N o n -n e g a tiv ity , x 0 ; y 0
Drawing Graph:
x y x y x y
0 3333.34 0 2500 0 800
556 0 1000 0 2000 0
Feasible Region
A
Nitrates Outside ABCD
Iso-cost line
Phosphates
Potash
C
X
D
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 158
The optimum point is found by drawing an example of an iso-cost line on the diagram
(any value of Z will do) and then placing a ruler against it. Then, by moving the ruler
towards the origin (in the case of a minimization problem) by keeping it parallel to the
iso-cost line, the last corner it touches of the feasible region represents the optimum
solution.
The optimum corner (last corner) is C, the intersection of potash and phosphates.
5 x 2 y 5000
2 x 5 y 4000
x 8 0 9 .5
a n d , y 4 7 6 .2
The optimum purchase plan is to acquire 809.5 kg of type 1 and 476.2 kg of type 2
fertilizer.
Cost saved=$15,000—$10,476=$4,524
Reducing one extra kg requirement for Phosphates, while leaving the other constraint
unchanged.
5 x 2 y 4900
2 x 5 y 4000
x 7 8 5 .7 1
a n d , y 4 8 5 .7 1
The reduction of $190.3 is the shadow price or the discount that the supplier would be
willing to give for each extra kg reduction in the requirement of Phosphates.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 159
Microsoft Solver Outputs:
Variable Cells
Original
Cell Name Value Final Value Integer
$A$2 x 0 810 Contin
$B$2 y 0 476.1904762 Contin
Constraints
Cell Name Cell Value Formula Status Slack
Not
$B$11 Non-neg 809.5238095 $B$11>=0 Binding 809.5238095
Not
$B$13 Non-neg 476.1904762 $B$13>=0 Binding 476.1904762
Not
$B$5 Nitrates 160 $B$5>=100 Binding 60
$B$7 Phosphates 50 $B$7>=50 Binding 0
$B$9 Potash 40 $B$9>=40 Binding 0
Binding: Critical Constraints (we have exactly the minimum quantities required of
Phosphates and Potash)
Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$A$2 x 809.5238095 0 10 2.5 8
$B$2 y 476.1904762 0 5 20 1
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$B$11 Non-neg 809.5238095 0 0 809.5238095 1E+30
$B$13 Non-neg 476.1904762 0 0 476.1904762 1E+30
$B$5 Nitrates 160 0 100 60 1E+30
$B$7 Phosphates 50 190.4761905 50 50 15
$B$9 Potash 40 23.80952381 40 60 20
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 160
Simplex Method
N itr a te s , 0 .1 8 x 0 .0 3 y 1 0 0
P h o s p h a te s , 0 .0 5 x 0 .0 2 y 5 0
Constraints: P o ta s h , 0 .0 2 x 0 .0 5 y 4 0
N o n -n e g a tiv ity , x 0 ; y 0
P1 0 .1 8 x 0 .0 3 y 100
P2 0 .0 5 x 0 .0 2 y 50
P3 0 .0 2 x 0 .0 5 y 40
Min 10 x 5y Z
Now converting the minimization problem into dual problem (maximization problem):
0 .1 8 P1 0 .0 5 P2 0 .0 2 P3 1 0
0 .0 3 P1 0 .0 2 P2 0 .0 5 P3 5
0 + 0 .1 8 P1 0 .0 5 P2 0 .0 2 P3 1 S 1 0 S 2 1 0
0 + 0 .0 3 P1 0 .0 2 P2 0 .0 5 P3 0 S 1 1 S 2 5
z 1 0 0 P1 5 0 P2 4 0 P3 0 S1 0 S 2 0
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 161
Z P1 P2 P3 S1 S2 value Row Operation
P1 0 1 0.2778 0.111 5.556 0 55.556
S2 0 0 0.0116 0.046 -0.166 1 3.3333 R 2 R 2 R 1 ( 0 .0 3 )
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 162
Question5: Pure Gasoline Company operates two refineries with different production
capacities. Refinery A can produce 4,000 gallons per day of Super Unleaded gasoline,
2,000 gallons per day of Regular Unleaded gasoline, and 1,000 per day of Diesel fuel. On
the other hand Refinery B can produce 1,000 gallons per day of Super Unleaded, 3,000
gallons per day of Regular Unleaded, and 4,000 gallons per day of Diesel fuel. The
company has made a contract with an automobile manufacturer to provide 24,000 gallons
of Super Unleaded, 42,000 gallons of Regular Unleaded, and 36,000 gallons of Diesel fuel.
Determine 1) the number of days the company should operate each refinery in order to
meet the terms of the contract most economically, 2) the minimum cost, and 3) what
grade(s) of fuel would be overproduced if the cost of running Refinery A is $1,500 per day
and Refinery B is $2,400 per day. Objective function, minimize cost, z 1 5 0 0 x 2 4 0 0 y
S u p e r U n le a d e d , 4 0 0 0 x 1 0 0 0 y 2 4 , 0 0 0
R e g u la r U n le a d e d , 2 0 0 0 x 3 0 0 0 y 4 2 , 0 0 0
Constraints: D ie s e l, 1 0 0 0 x 4 0 0 0 y 3 6 , 0 0 0
N o n -n e g a tiv ity , x 0 ; y 0
Now converting the minimization problem into dual problem (maximization problem):
4 0 0 0 P1 2 0 0 0 P2 1 0 0 0 P3 1 5 0 0
1 0 0 0 P1 3 0 0 0 P2 4 0 0 0 P3 2 4 0 0
0 + 4 0 0 0 P1 2 0 0 0 P2 1 0 0 0 P3 1S1 0 S 2 1 5 0 0
0 + 1 0 0 0 P1 3 0 0 0 P2 4 0 0 0 P3 0 S1 1S 2 2 4 0 0
z 2 4 , 0 0 0 P1 4 2 0 0 0 P2 3 6 0 0 0 P3 0 S 1 0 S 2 0
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 163
Z P1 P2 P3 S1 S2 value Row Operation
P2 0 2 1 0.5 0.0005 0 0.75 R 1 R 1 / 2 0 0 0
S2 0 1000 3000 4000 0 1 2400
Z 1 -24000 -42000 -36000 0 0 0
Here, column P3 is the entering variable column. Leaving variable or point row is S2,
hence P3 will replace S2.
P2 0 2 1 0.5 0.0005 0 0.75
P3 0 -2 0 1 -0.0006 0.0004 0.06 R 2 R 2 / 2 5 0 0
The value of S1=X=12 days, and the value of S2= Y=6 days and the minimized
cost=$32,400. The company should operate Refinery A for 12 days and Refinery B for 6
days to fulfil the contract with associated minimum cost of $32,400.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 164
Question6: In a chair manufacturing company Lounge chairs and Swivel chairs are made
using the equipment of two departments: I and II. It requires one hour in each
department to make a lounge chair, but making a swivel chair takes one hour in
department I and two hours in department II. Department I has four hours of time
available, and II has six hours available. Each Lounge chair made and sold contributes $1
to profit, and each Swivel chair contributes $0.50 to profit. Find the optimal production
plan (maximize contribution) for the company.
4.5
3.5
2.5
1.5
0.5
0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 165
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$A$7 Dept1 4 1 4 2 4
$A$9 Dept 2 4 0 6 1E+30 2
Question7: Ace Rubber Company manufactures two types of tires: Model P (the
premium) and Model R (the regular). Model P sells for $95 per tire and costs $85 per tire
to make, whereas Model R sells for $50 per tire and costs $42 per tire to make. To make
one model P tire, it requires two hours on machine A and four hours on machine B. On
the other hand, to make one model R tire, it takes 9 hours on machine A and three hours
on machine B. Production scheduling indicates that during the coming week Machine A
will be available for at most 36 hours and machine B for at most 42 hours. How many of
each tire should the company make in the coming week in order to maximize its profit?
What is this maximum profit?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 166
Machine A Machine B Objective
16
14
12
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Question8: Star Insulating Company manufactures two types of storm windows: Model
H (the heavy duty) and Model R (the regular). Model H sells for $45 per window and cost
$36 per window to make, whereas Model R sells for $35 per window and costs $27 per
window to make. To make one model H window, it requires 4 hours on machine A and 3
hours on machine B. On the other hand, to make one model R window, it takes 5 hours
on machine A and 2 hours on machine B. Production scheduling indicates that during the
coming week Machine A will be available for at most 30 hours and machine B for at most
19 hours. How many of each window should the company make in the coming week in
order to maximize its profit? What is this maximum profit?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 167
Machine A Machine B Objective
10
0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5
Question9: Safety Lock Company makes two kinds of locks: Model SS (Super safe) and
Model S (safe). Each model SS lock sells for $24 and costs $19 to make, while each model
S lock sells for $18 and costs $15 to make. Model SS requires 3 hours on machine A and 2
hours on machine B, whereas model S requires 7 hours on machine A and 1 hour on
machine B. During the coming week machine A will be available for no more than 42
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 168
hours and machine B for no more than 17 hours. Determine the number of each kind of
lock to be made in the coming week for the company to maximize its profit. What is this
maximum profit?
18
16
14
12
10
0
10.5
11.5
12.5
13.5
1.5
7
0
9
0.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10
11
12
13
14
Objective Cell (Max)
Cell Name Original Value Final Value
$A$9 Obj 0 44
Variable Cells
Cell Name Original Value Final Value Integer
$A$2 x 0 7 Contin
$B$2 y 0 3 Contin
Constraints
Cell Name Cell Value Formula Status Slack
$A$5 Machine A 42 $A$5<=42 Binding 0
$A$7 Machine B 17 $A$7<=17 Binding 0
$A$2 x 7 $A$2>=0 Not Binding 7
$B$2 y 3 $B$2>=0 Not Binding 3
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$A$5 Machine A 42 0.090909091 42 77 16.5
$A$7 Machine B 17 2.363636364 17 11 11
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 169
Question10: XYZ Steel Company manufactures two kinds of wrought-iron rails: Model E
(the elegant) and Model D (the distinctive). Model E rails sell for $59 and cost $50 to
make, whereas Model D rails sell for $48 and cost $41 to make. To make one model E rail
requires 2 hours on machine A, 1 hour on machine B and 4 hours on machine C. On the
other hand, to make one model D rail requires 1 hour on machine A, 2 hours on B, and 5
hours on C. Production scheduling indicates that, during the coming week machine A will
be available for at most 30 hours, machine B for at most 24 hours, and machine C for at
most 72 hours. Find the number of each kind of rail to be made in the coming week in
order for the company to maximize its profit. What is this maximum profit? At the
maximum, which machines, if any are not fully utilized?
Question11: A special food for athletes is to be developed from two foods: Food X and
Food Y. The new food is to contain at least 16mg of vitamin A, at least 20 mg of vitamin
B, and at least 12mg of vitamin C. Each pound of food X costs $1.5 and contains 1mg of
vitamin A, 5mg of vitamin B and 1mg of vitamin C. On the other hand each pound of
food Y costs $2.5 and contains 2mg of vitamin A, 1mg of vitamin B and 1mg of vitamin C.
How many pounds of each food should be used in the mixture in order to meet the
preceding requirements at a minimum cost? What is this minimum cost?
Question12: Repeat problem 11 if, in addition, the amount of food Y in the mixture must
be no more than one and half the amount of food X.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 170
Vit A Vit B Vit C Mixture Obj
25
20
15
10
0
10.5
11.5
12.5
13.5
14.5
15.5
0
9
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10
11
12
13
14
15
16
Question13: Strong Steel Company operates two steel mills with different production
capacities. Mill I can produce 1,000 tons per day of AAA steel, 3,000 tons per day of AA
steel, and 5,000 tons per day of A steel. Mill II can produce 2,000 tons per day of each
grade of steel. The company has made a contract with the construction firm to provide
24,000 tons of AAA steel, 32,000 tons of AA steel, and 40,000 tons of A steel. The cost of
running mill I and II are $1,400 per day and $1,000 per day. Find the optimal production
plan.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 171
25 AAA Steel AA Steel A Steel Objective
20
15
10
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 172
Objective Cell (Min)
Cell Name Original Value Final Value
$A$13 Obj 0 15600
Variable Cells
Cell Name Original Value Final Value Integer
$A$2 x 0 4 Contin
$B$2 y 0 10 Contin
Constraints
Cell Name Cell Value Formula Status Slack
$A$10 A Steel 40000 $A$10>=40000 Binding 0
$A$4 AAA Steel 24000 $A$4>=24000 Binding 0
$A$7 AA Steel 32000 $A$7>=32000 Binding 0
Not
$A$2 x 4 $A$2>=0 Binding 4
Not
$B$2 y 10 $B$2>=0 Binding 10
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$A$10 A Steel 40000 0 40000 -1.81899E-12 1E+30
$A$4 AAA Steel 24000 0.05 24000 0 13333.33333
$A$7 AA Steel 32000 0.45 32000 40000 0
Question14: ABC dairy company wishes to make a new cheese from two of its current
cheeses: Cheese X and Cheese Y. The mixture is to weigh to more than 4 pounds and is to
contain at least 6 ounces of the sharpness ingredient S. Each pound of X costs $4 and
contains 3 ounces of S, whereas each pound of Y costs $1 and contain 1 ounce of S. How
many pounds of each cheese should be used in the mixture in order to meet these
requirements at a minimum cost? What is this minimum cost?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 173
Mixture Ingredient S Obj
18
16
14
12
10
0
0 0.5 1 1.5 2 2.5 3 3.5 4
Question15: A wholesaler has 9,600 feet of space available, and $5,000 to buy
merchandise of types A, B and C. Type A costs $4 per unit and requires 4 feet of storage
space in the warehouse. B costs $10 per unit and requires 8 feet of space. C costs $5 per
unit and requires 6 feet of space. Only 500 units of type A are available to the wholesaler.
Assuming that the wholesaler expects to make a profit of $1 on each unit of A bought and
stocked, $3 per unit on B, and $2 per unit on C, how many units of each should be bought
and stocked in order to maximize his profit, and what is this maximum profit?
Question16: A merchant plans to sell two models of home computers at costs of $250 and
$400, respectively. The $250 model yields a profit of $45 and the $400 model yields a
profit of $50. The merchant estimates that the total monthly demand will not exceed 250
units. Find the number of units of each model that should be stocked in order to
maximize profit. Assume that the merchant does not want to invest more than $70,000 in
computer inventory.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 174
Question17: A fruit grower has 150 acres of land available to raise two crops, A and B. It
takes one day to trim an acre of crop A and two days to trim an acre of crop B, and there
are 240 days per year available for trimming. It takes 0.3 day to pick an acre of crop A
and 0.1 day to pick an acre of crop B, and there are 30 days per year available for
picking. Find the number of acres of each fruit that should be planted to maximize profit,
assuming that the profit is $140 per acre for crop A and $235 per acre for B.
Question18: A grower has 50 acres of land for which she plans to raise three crops. It
costs $200 to produce an acre of carrots and the profit is $60 per acre. It costs $80 to
produce an acre of celery and the profit is $20 per acre. Finally, it costs $140 to produce
an acre of lettuce and the profit is $30 per acre. Use the simplex method to find the
number of acres of each crop she should plant in order to maximize her profit. Assume
that her cost cannot exceed $10,000.
Question19: A fruit juice company makes two special drinks by blending apple and
pineapple juices. The first drink uses 30% apple juice and 70% pineapple, while the
second drink uses 60% apple and 40% pineapple. There are 1000 liters of apple and 1500
liters of pineapple juice available. If the profit for the first drink is $0.60 per liter and
that for the second drink is $0.50, use the simplex method to find the number of liters of
each drink that should be produced in order to maximize the profit.
Question20: A manufacturer produces three models of bicycles. The time (in hours)
required for assembling, painting, and packaging each model is as follows.
Question21: Suppose in Exercise 25 the total time available for assembling, painting, and
packaging is 4000 hours, 2500 hours, and 1500 hours, respectively, and that the profit per
unit is $48 (Model A), $50 (Model B), and $52 (Model C). How many of each type should
be produced to obtain a maximum profit?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 175
Question24: An investor has up to $250,000 to invest in three types of investments. Type
A pays 8% annually and has a risk factor of 0. Type B pays 10% annually and has a risk
factor of 0.06. Type C pays 14% annually and has a risk factor of 0.10. To have a well-
balanced portfolio, the investor imposes the following conditions. The average risk factor
should be no greater than 0.05. Moreover, at least one-fourth of the total portfolio is to be
allocated to Type A investments and at least one-fourth of the portfolio is to be allocated
to Type B investments. How much should be allocated to each type of investment to
obtain a maximum return?
Question26: An accounting firm has 900 hours of staff time and 100 hours of reviewing
time available each week. The firm charges $2000 for an audit and $300 for a tax return.
Each audit requires 100 hours of staff time and 10 hours of review time, and each tax
return requires 12.5 hours of staff time and 2.5 hours of review time. What number of
audits and tax returns will bring in maximum revenue?
Question27: A small petroleum company owns two refineries. Refinery 1 costs $20,000
per day to operate, and it can produce 400 barrels of high-grade oil, 300 barrels of
medium-grade oil, and 200 barrels of low-grade oil each day. Refinery 2 is newer and
more modern. It costs $25,000 per day to operate, and it can produce 300 barrels of high-
grade oil, 400 barrels of medium-grade oil, and 500 barrels of low-grade oil each day. The
company has orders totaling 25,000 barrels of high-grade oil, 27,000 barrels of medium-
grade oil, and 30,000 barrels of low-grade oil. How many days should it run each refinery
to minimize its costs and still refine enough oil to meet its orders?
Question28: A small petroleum company owns two refineries. Refinery 1 costs $20,000
per day to operate, and it can produce 400 barrels of high-grade oil, 300 barrels of
medium-grade oil, and 200 barrels of low-grade oil each day. Refinery 2 is newer and
more modern. It costs $25,000 per day to operate, and it can produce 300 barrels of high-
grade oil, 400 barrels of medium-grade oil, and 500 barrels of low-grade oil each day. The
company has orders totaling 25,000 barrels of high-grade oil, 27,000 barrels of medium-
grade oil, and 30,000 barrels of low-grade oil. How many days should it run each refinery
to minimize its costs and still refine enough oil to meet its orders?
Question29: Two dietary drinks are used to supply protein and carbohydrates. The first
drink provides 1 unit of protein and 3 units of carbohydrates in each litre. The second
drink supplies 2 units of protein and 2 units of carbohydrates in each litre. An athlete
requires 3 units of protein and 5 units of carbohydrates. The first drink costs $4 per litre
and the second costs $2 per litre. Find the amount of each drink the athlete should
consume to minimize the cost and still meet the minimum dietary requirements.
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 176
Question30: An athlete uses two dietary drinks that provide the nutritional elements
listed in the following table.
Question31: A company has three production plants, each of which produces three
different models of a particular product. The daily capacities (in thousands of units) of
the three plants are as follows.
Question32: The Company in Exercise 29 has lowered the daily operating cost for Plant 3
to $50,000. How many days should each plant be operated in order to fill the total
demand, and keep the operating cost at a minimum?
Question33: A small petroleum company owns two refineries. Refinery 1 costs $25,000
per day to operate, and it can produce 300 barrels of high-grade oil, 200 barrels of
medium-grade oil, and 150 barrels of low-grade oil each day. Refinery 2 is newer and
more modern. It costs $30,000 per day to operate, and it can produce 300 barrels of high-
grade oil, 250 barrels of medium-grade oil, and 400 barrels of low-grade oil each day. The
company has orders totaling 35,000 barrels of high-grade oil, 30,000 barrels of medium-
grade oil, and 40,000 barrels of low-grade oil. How many days should the company run
each refinery to minimize its costs and still meet its orders?
Question34: A steel company has two mills. Mill 1 costs $70,000 per day to operate, and it
can produce 400 tons of high-grade steel, 500 tons of medium-grade steel, and 450 tons of
low-grade steel each day. Mill 2 costs $60,000 per day to operate, and it can produce 350
tons of high-grade steel, 600 tons of medium-grade steel, and 400 tons of low-grade steel
each day. The company has orders totaling 100,000 tons of high-grade steel, 150,000 tons
of medium-grade steel, and 124,500 tons of low-grade steel. How many days should the
company run each mill to minimize its costs and still fill the orders?
Mohammad Kamrul Arefin, MSc. in Quantitative Finance, University of Glasgow Page | 177