LN 5-1 Koko Martono, FMIPA - ITB MBM – 046

Rules for Differentiation

f ( x + h) - f ( x )
The Derivative Derivative of y = f ( x) at x is f ¢( x) = lim h
.
hÆ0
dy dy
Notation: f ¢( x), y ¢, dx , Dx y , dx ≡ Leibniz notation.
Derivative of constants function If y = f ( x) = C , then y ¢ = 0 .
Power rule If y = f ( x) = x n , n is a real number, then y ¢ = nx n -1 .
Derivative of constants times a function (ku ) ¢ = ku ¢ , k is constants
If u = f ( x) = ku ( x) , k is constants, then y ¢ = ku ¢( x) .
Derivative of sums and differences of two functions (u + v) ¢ = u ¢ + v ¢
If y = f ( x) = u ( x) ± v( x) , then y ¢ = u ¢( x) ± v ¢( x)
This rule can be generalizes to any given number of function
Derivative of product of two functions (uv) ¢ = uv ¢ + vu ¢
If y = f ( x) = u ( x) ◊ v( x) , then y ¢ = u ( x)v ¢( x) ± v( x)u ¢( x) .

Derivative of quotients of two functions ( uv )¢ = vu ¢v- uv¢2

u ( x) v ( x )u ¢ ( x ) - u ( x ) v ¢ ( x )
If y = f ( x) = v ( x ) , then y ¢ = .
(v ( x ) ) 2
dy dy du
Chain rule If y = y (u ) and u = u ( x) , then y ¢ = dx = du ◊ dx .
1
Inverse function If y = f -1 ( x) ¤ x = f ( y ) , then y ¢ = dx = dx .
dy

dy
 LN 5- 2
MBM047
Differentiation and Marginal Analysis

Example 5.1
(1) If rules of differentiation are used to find the derivative of y = 2 + 3 x 4 - 4 x5,
then we have y ¢ = 12 x3 - 20 x 4 .
1
(2) If Leibniz notation is used to find the derivative of y = x + , then we
x
write dx
d
( x+
1
x
d
) ( 1
)
= dx x1/ 2 + x -1/ 2 = 2 x -1/ 2 - 2 x -3 / 2 =
1 1
-
2 x 2x x
1
.

(3) If the derivative of product two function is used to find the derivative of
y = (2 x - 3)( x3 + 3 x) , then we have
d d
y ¢ = (2 x - 3) dx ( x3 + 3 x) + ( x3 + 3 x) dx (2 x - 3)
= (2 x - 3)(3 x 2 + 3) + ( x3 + 3 x) ◊ 2
= 6 x3 + 6 x - 9 x 2 - 9 + 2 x3 + 6 x
= 8 x3 - 9 x 2 + 12 x - 9
Another method Write y = (2 x - 3)( x3 + 3 x) = 2 x 4 - 3 x3 + 6 x 2 - 9 x , then
its derivative is y ¢ = 8 x3 - 9 x 2 + 12 x - 9 .
(4) If the derivative of quotients two function is used to find the derivative of
x3 + 3 x
y = 2 x - 3 , then we have
d d
(2 x - 3) dx ( x3 + 3x) - ( x3 + 3 x) dx (2 x - 3)
y¢ =
(2 x - 3) 2
(2 x - 3)(3 x 2 + 3) - 2( x3 + 3 x) 4 x 2 - 9 x 2 - 9
= = .
(2 x - 3) 2 (2 x - 3) 2
(5) If the chain rule is used to find the derivative of y = ( x3 + 3 x) 4 , we let u =
dy dy
x3 + 3 x , then y = u 4 , du = 4u 3 = 4( x3 + 3 x)3 , and dx = 3 x 2 + 3 . Therefore
dy dy du
y ¢ = dx = du ◊ dx = 4( x3 + 3 x )3 (3x 2 + 3) = 12( x3 + 3 x)3 ( x 2 + 1) .

(6) If the chain rule is used to find the derivative of y = 1 + x 2 , then we have

y¢ =
d
dx (
1 + x2 =
2x
)
2 1 + x2
=
x x
= .
1 + x2 y
 LN 5- 3
MBM048
Differentiation and Marginal Analysis

Student Work-sheet
I.N Name Signature

Problems (a) If f (x) = (3x + 5) (x − 3), find f ¢( x) and simplify.

2

x2 + 1
(b) If f (x) = 2 x - 3 , find f ¢( x) and simplify.
x
(c) If f (x) = , find f ¢( x) and simplify.
x2 + 4

Solution
 LN 5- 4
MBM049
Differentiation and Marginal Analysis

Student Work-sheet
I.N Name Signature

d
( (
Problems (a) Find dx 9 x1/ 3 x3 + 5 )) and simplify.
d Ê x3 - 2 x 2 ˆ
(b) Find and simplify.
dx ËÁ 3 x 2 ¯˜

Solution
 LN 5- 5
MBM050
Differentiation and Marginal Analysis

Student Work-sheet
I.N Name Signature

Problems If f (x) = x4 − 2x3 − 2x2 + 6x.

(a) find f ¢( x) ,
(b) find the equation of tangent lines at x = 2 and x = −2,
(c) find the values of x where the tangent line is horizontal.

Solution
 LN 5- 6
MBM051
Differentiation and Marginal Analysis

Student Work-sheet
I.N Name Signature
x (supply)
Problems Price-supply equation According the classical
1000 economy theory, the supply x for a quantity in a free market
increases as the price p increase (see the left figure). Suppose
800 that the number x of compact disk players a retail chain is
willing to sell per week at a price of $p is given by
600 100 p 100 p
x = x ( p ) = 0.1 p + 1 , x ( p ) = 0.1 p + 1 , 10 £ p £ 70 .
400 10 £ p £ 70 (a) Find x′(p).
(b) Find the supply and the instantaneous rate of change of
200 supply with respect to price when the price is $40. Write a
brief verbal interpretation to this result.
0 10 30 50 70 x (c) Use the result from part (b) to estimate the supply if the
100 p
x = x ( p) = 0.1 p + 1 , 10 £ p £ 70 price is increased to $41.

Solution
 LN 5- 7
MBM052
Differentiation and Marginal Analysis

Marginal Analysis in Business and Economics

Marginal In economics, the word marginal related to rate of change, that is

a derivative.
If C(x) is total cost of producing x items, then C ¢( x ) is marginal cost.
Marginal cost is the instantaneous rate of change of total cost C(x) with
respect to the number of items produced at a production level of x items.
Marginal cost, marginal revenue, and marginal profit If x is the number of
unit of a product produced in some time interval, then we have
total cost is C(x) and marginal cost is C ¢( x) ,
total revenue is R(x) and marginal revenue is R ¢( x) ,
total profit is P(x) = R(x) − C(x) and marginal profit is P ¢( x) = R ¢( x) - C ¢( x).
Marginal cost (revenue or profit) is the instantaneous rate of change of
cost (revenue or profit) relative to production at a given production level.

C
C(x) ≡ total cost of producing x items.
tangent line at x C(x + 1) ≡ total cost of producing x + 1 items.
} C′(x) C(x + 1) − C(x) ≡ exact cost of producing the (x + 1)-st item
h =1 C(x+1) − C(x)
C ( x + h) - C ( x )
C ¢( x) = lim h
≡ marginal cost
hÆ0
y = C(x) C ( x + h) - C ( x)
C ¢( x) ª h
h≠0
0 x x+1 x
C ¢( x) ª C ( x + 1) - C ( x) h=1

Marginal cost and exact cost If C(x) is the total cost of producing x items,
then the marginal cost function approximates the exact cost of producing
(x + 1)-st item is C ¢( x) ≈ C(x + 1) − C(x).
Marginal cost ≈ Exact cost
Similar interpretations can be made for total revenue functions and total
profit functions.
 LN 5- 8
MBM053
Differentiation and Marginal Analysis

Example 5.2 The market research department of a company

recommends that the company manufacture and market a new
transistor radio. After suitable test marketing, the research de-
partment presents the following price-demand equation
x = 10,000 − 1,000p, x is demand at price p.
Solving this equation for p, we have
p = 10 − 0.001x
where x is the number of radios retailers are likely to buy at $p per radio.
The financial department provides the following cost function
C(x) = 7,000 + 2x
where $7,000 is the estimate of fixed cost (tooling and overhead) and $2 is the
estimate of variable costs per radio (materials, labor, marketing, transportation,
storage, etc.)
(a) Find the domain of the function defined by the price-demand equation for p.
(b) Find the marginal cost function C ¢( x) and interpret.
(c) Find the revenue function as a function of x and find its domain.
(d) Find the marginal revenue at x = 2,000; 5,000; and 7,000. Interpret these results.
(e) Graph the cost function and the revenue function in the same coordinate system,
find the intersection points of these two graphs, and interpret these results.
(f) Find the profit function and its domain, and sketch its graph.
(g) Find the marginal profit at x = 1,000; 4,000; and 6,000. Interpret these results.

Solution
(a) Since p ≥ 0 and x ≥ 0, then p = 10 − 0.001x ≥ 0. Solve this equation, we have
0.001 x ≤ 10, or x ≤ 10,000. Thus, the domain of p is 0 ≤ x ≤ 10,000.
(b) The marginal cost is C ¢( x) = 2. Since this is a constant, it costs an additional $2
to produce one more radio at any production level.
(c) The revenue is the amount of money R received by the company for manufac-
turing and selling x radio at $p per radio and is given by
R = (number of radios sold) (price per radio) = xp
In general, the revenue R can be expressed as a function of p or x. When using
marginal functions, we will always use the number of items x as the indepen-
dent variable. Thus revenue function is
2
R(x) = xp = x (10 − 0.001x) = 10 x − 0.001 x , 0 ≤ x ≤ 10,000.
Thus, domain of the revenue function is 0 ≤ x ≤ 10,000.
 LN 5- 9
MBM054
Differentiation and Marginal Analysis

(d) The marginal revenue is

R ¢( x) = 10 − 0.002x, 0 ≤ x ≤ 10,000
For production levels of x = 2,000; 5,000; and 7,000, we have
R′(2,000) = 6 R′(5,000) = 0 R′(7,000) = −4
This mean that at production levels 2,000; 5,000; and 7,000, the respective
approximate changes in revenue per unit change in production are $6, $0, and
−$4. That is at the 2,000 output level, revenue increases as production increase;
at the 5,000 output level, revenue does not change with a “small” change in
production; and at the 7,000 output level, revenue decreases with as increase in
production.

(e) R or C
The intersection points of graph revenue R =
R = R(x) R(x) and graph cost C = C(x) called the break-
30,000 C = C(x) even points because revenue equals cost at
25,000
profit these production levels. The company neither
loss
20,000 makes nor loses money, but just breaks even.
15,000 The break even points are obtained as follows:
break-
10,000 event R(x) = C(x)
point 2
5,000 10 x − 0.001 x = 7000 + 2x
loss 2
x − 8000x + 7000000 = 0
0 5,000 10,000 x
(x − 1000) (x − 7000) = 0

R(1,000) = 9,000 = C(1,000) and R(7,000) = 21,000 = C(7,000)

The break even point are (1000, 9000) and (7000, 21000), see the figure. That
cost is greater than revenue for production levels 0 − 1000 and 7000 − 10000,
the company incurs a loss at these levels. The company makes a profit for the
production levels 1000 − 7000.

(f) P The profit function is P(x) = R(x) − C(x),

2
max P(x) at x = 4,000 P(x) = (10 x − 0.001 x ) − (7000 + 2x)
10,000
P = P(x) 2
= −0.001 x + 8x − 7000, 0 ≤ x ≤ 10,000
0 1000 4000 7000 10000 x
(g) The marginal profit is
−10,000
P′(x) = −0.002x + 8, 0 ≤ x ≤ 10,000
−20,000
P′(1,000) = 6, P′(4,000) = 0, P′(6,000) = −4.
−30,000
Note that P increase at x = 1000, P constant
at x = 4000, and P decrease at x = 6000.
 LN 5-10
MBM055
Differentiation and Marginal Analysis

Student Work-sheet
I.N Name Signature

Problems The price-demand equation for the production of television sets are given by x =
9,000 − 30p and the cost function are C(x) = 150,000 + 30x where x is the number of sets that
can be sold at a price of $p per set and C(x) is the total cost (in dollars) of producing x sets.
(a) Express the price p as a function of the demand x and find the domain of this function.
(b) Find the marginal cost, revenue function, and marginal revenue with its domain of functions.
(c) Find R ′(3,000) and R ′(6,000), and interpret the result.
(d) Graph the cost and revenue function on the same coordinate system for 0 ≤ x ≤ 9,000. Find
the break-even point, and indicate region of loss and profit.
(e) Find the profit function in term of x and its marginal profit and graph this function.
(f) Find P ′(1,500) and P ′(4,500), and interpret the result.

Solution

(d) y (e) y

0 x

0 x
 LN 5-11
MBM056
Differentiation and Marginal Analysis

Marginal average cost, revenue, and profit

Per unit Cost Revenue Profit
C ( x) R( x) P( x)
average C ( x) = x R ( x) = x P ( x) = x
d d d
marginal average C ¢( x) = dx C ( x) R ¢( x) = dx R ( x) P ¢( x) = dx P ( x)

Student Work-sheet
I.N Name Signature

Problems The cost (in dollars) of printing x dictionaries is C(x) = 20,000 + 10x.
(a) Find the average cost per unit if 1,000 dictionaries are produced.
(b) Find the marginal average cost at a production level 1,000 units and interpret the results.
(c) Use the result to estimate the average cost per dictionary if 1,001 dictionaries are produces.

Solution
 LN 5-12
MBM057
Differentiation and Marginal Analysis

Exercise 5
d Ê 3 1 ˆ
1. Find ÁË 3 + 5 ¯˜ and simplify.
dx 4 x 2x

d Ê 2 x5 - 4 x3 + 2 x ˆ
2. Find ˜ and simplify.
dx ÁË x3 ¯

3. The total cost in dollars of producing x tennis rackets, 0 ≤ x ≤ 120 per day is
C(x) = 800 + 60x − 0.25x .
2

(a) Find the marginal cost at a production level of x rackets

(b) Find the marginal cost at a production level of 60 rackets and interpret the
result.
(c) Find the actual cost of producing 61- th rackets, and compare cost with the
result (b).
(d) Find C ′(80), and interpret the result.
4. Medicine A drug is injected into the bloodstream of a patient through her right
arm. The concentration of the drug (in milligrams per cc) in the bloodstream of
0.14t
the left arm t hours after the injection is given by C (t ) = .
t2 +1
Find C ′(t), C ′(0.5), and C ′(3) and interpret the results.
5. Profit analysis The total profit (in dollars) from the sale of x lawn mowers is
P(x) = 30x − 0.03x − 750, where 0 ≤ x ≤ 1000.
2

(a) Find the average profit per mower if 50 mowers are produced
(b) Find the marginal average profit at a production level of 50 mowers and
interpret.
(c) Estimate the average profit per 51 mowers are produced.
6. Break even analysis The price-demand equation for the production of garden
hoses is p(x) = 20 − x and the cost function of this product is C(x) = 500 + 2x,
where x is the number of garden hoses that can be sold at the price of $p per unit
and C(x) is the total cost (in dollars) of producing x garden hoses.
(a) Express the revenue function in term of x.
(b) Graph the cost function and the revenue function in the same coordinate
system for 0 ≤ x ≤ 400. Use approximation technique to find the break even
points correct to nearest unit.

Math Quote No human investigation can be called real science if it

cannot be demonstrated mathematically. Leonardo da Vinci (1452 – 1519)