Mathematical Induction

Geometric progression
Arithmetic Progression
Permutation
Combination

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 Let the formula or proposition be denoted by P(n).the
principle of mathematical induction states that if
(i) the formula or given proposition P(n) involving n is true
for n=1,2 and
(ii)if the truth of P(m) for n=m implies it is ,true for
P(m+1),then P(n) is true for all positive integral values of n.

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 Use mathematical induction to prove the following results:
 1+3+5+7+……+(2n-1)=n^2.
 2+6+10+……..+(4n-2)=2n^2.
 1+2+3+……….+n=n(n+1)/2.
 (1+x)^n >1+nx, for n=2,3,4,..and x>(-1).

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Find the sum of the first n natural number.
Find the sum of the squares of the first n natural
numbers.
Find the sum of the cubes of the first n natural numbers.
Find the sum of the series: 1*4+3*7+5*10+………to n
terms

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If for a sequence {un}, un+1-u n remains
constant for all natural numbers n ,then
sequence is called the A.P. and the
numerical difference between two
consecutive, terms is called the common
difference of the A.P.

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A series in arithmetic progression thus becomes
an additive series in which the common difference
can be found by subtracting each terms from its
preceding one.
The nth term of an A.P.
Let a be the first term and d be the common
difference. Then nth term =a+(n-1)d.

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The sum of n terms of a series in A.P. is denoted by
Sn and Sn= (n){2a+(n-1)d}/2, where a is first term
of series and d is common difference.

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We can represent the terms in A.P. as follows:
I. Three terms: a-d , a ,a+d.
II. Four terms : a-3d ,a-d ,a+d ,a+3d.
III. Five terms : a-2d ,a-d ,a ,a+d ,a+2d.

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1. The monthly salary of a person was Rs 3200 for each of the first
three years .He then got annual increment of Rs400 per month
for each of following successive 12 years. His salary remained
stationary till retirement when he found that his average monthly
salary during the service period was Rs6980. Find the period of
his service
2. A man is employed in a company at Rs16000 per month and is
promised an increment of Rs500 per year. find the total amount
which he receives in 12 years and his pay in the last year.
3. Find the sum of all the numbers between 200 and 400 which are
divisible by 7.

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1. Find five numbers in A.P. such that their sum is 35 and the
sum of their squares is 285.
2. Find the nth term of the series whose sum to n terms is
3n2+4n.show that the series is in A.P.
3. If pth term of an A.P. is 1/q and qth term is 1/p ,show that
the sum of its pq terms is (pq+1)/2
4. Find the sum of all natural numbers between 250 to 1000,
which are exactly divisible by 3.

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1. Two posts are offered to a man, in the first one, the starting salary is Rs1200 per month
with the annual increment of Rs80.in the second post, the salary commences at Rs850 per
month but the annual increment is Rs120. The man will accept that post which will give him
more earnings in the first twenty years of service. Find which post should he accept??

2. The Cricket Control Board of India decides to raise a cricketer`s beneficiary fund of Rs5
crores. A start is made with Rs10 lacks and every year an additional worth Rs3 lacks is
made. In how many years will the fund reach the desired value?? What should be the last
year’s contribution to make up the desired fund??
3. Insert four arithmetic means between 4 and 64.
4. S1 , S2 , S3,……….Sp are the sum of first n terms of each of the ‘p’ A.P’ s whose first terms
are1, 2, 3,…………and common differences are 1,3,5,………..respectively. show that
S1+S2+…….+Sp = [np(np+1)/2]

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1. Find the sum of integers which are multiples of 6 and
lie between 200 and 500.
2. Find the sum of all odd numbers of four digit which are
divisible by 9.

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 Geometric Progression: If in any sequence
consecutive ratio between any two terms is
same it is said to be a geometric
progression.
nth term of an G.P. :-
nth term = arn-1 ,where a is first term and r is common ratio.
Sum of a G.P. :-
sum of first n terms of G.P. is denoted by Sn
and it is given by
Sn = a(rn -1)/(r-1) , r≠1.

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 Geometric mean:- If three non-zero numbers
a,b,c are in G.P. ,then b is called the
geometric mean between a and b.
i.e. a/b =b/c => b =√ac .
Important notes on G.P.:-
It is convenient to take
1. Three terms in G.P. as a/r , a , ar
2. Five terms in G.P. as a/r2 ,a/r ,a ,ar,ar2
3. Four terms in G.P. as a/r3 ,a/r ,ar ,ar3.
4. nth term from the end = l(1/r)n-1 ,where l is
last term and r is the common ratio.

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 If l denotes the nth term of a G.P. then
Sn= (lr-a)/(r-1).
Infinite geometric series: The sum of the
terms of an infinite geometric series is
given by a/(r-1) , provided |r|<1.

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1. Three numbers are in G.P. their product is 64 and sum is
124/5 .find the numbers.
2. If a,b,c are in A.P. and x,y,z are in G.P. ,prove xb-c yc-a za-b =1.
3. 5th term of a G.P. is 7.Find the product of first 9 terms of this
G.P.
4. If 4th and 5th term of a G.P. are 2 and 8 respectively. Find the
product of first 6 terms.
5. If a = 1+x+x2+x3+……..∞ , b=1+y+y2+y3+………∞, then find
the value of 1+xy+(xy)2+(xy)3+…..∞
6. The ratio of sum of first three terms of G.P. to sum of first six
terms is 125:152. Find the common ratio.

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1. If the third ,sixth and last terms of a G.P. are 6,48 and 3072
respectively , find the first term in the G.P.
2. Three numbers whose sum is 21 are in A.p. if 2,2,14 are
added to them respectively , the resulting numbers are in G.P.
Find the numbers.
3. Find the sum of series 1+3+9+27+…to 10 terms.
4. Find the sum to n terms of the series .6+.66+.666+…..
5. Find the series 8+88+888+………….to n terms.
6. If a and b are positive numbers such that a+b=1 ,
x=1+a+a2+……..∞ and y= 1+b+b2+……..∞
prove that (1/x) +(1/y) = 1.

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Let G1,G2,…..Gn be the n G.M. between a and b. Then
a,G1,G2,….Gn ,b are in G.P. whose first term is a , the last
term is b , and the number of terms is n+2. If r is the
common ratio of this G.P. Then
b = an+2=arn+1 ⇨ r =(b/a)1/n+1
∴ G1 = ar=a(b/a)1/n+1,G2=ar2=a(b/a)2/n+1….Gn=arn

Question: Insert four geometric means between 1/5 and

1/15625.

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What's the Difference?
In English we use the word "combination" loosely, without
thinking if the order of things is important.
In other words:
"My fruit salad is a combination of apples, grapes and
bananas" We don't care what order the fruits are in, they
could also be "bananas, grapes and apples" or "grapes,
apples and bananas", its the same fruit salad.
"The combination to the safe was 472". Now we do care
about the order. "724" would not work, nor would "247". It
has to be exactly 4-7-2.

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So, in Mathematics we use more precise language:

If the order doesn't matter, it is a Combination.

If the order does matter it is a Permutation.

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The factorial function (symbol: !) just means to multiply a
series of descending natural numbers. Examples:
4! = 4 × 3 × 2 × 1 = 24
7! = 7 × 6 × 5 × 4 × 3 × 2 × 1 = 5,040
1! = 1
Note: it is generally agreed that 0! = 1. It may seem funny
that multiplying no numbers together gets us 1, but it helps
simplify a lot of equations.

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When there are m ways to do one thing,
and n ways to do another,
then there are m×n ways of doing both.

Example: you have 3 shirts and 4 pants.

That means 3×4=12 different outfits.

Example: There are 6 flavors of ice-cream, and 3 different cones.

That means 6×3=18 different single-scoop ice-creams you
could order.

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1. In a college election, there are 4 candidates for president
, 3 candidates for vice president and 2 for secretary. In
how many ways can these three offices be filled??
2. There are five routes for journey from Delhi to Prayagraj
. In how many different ways can a man go from Delhi
to Prayagraj and return, if for returning
(i) any of the routes is taken.(ii) the same route is taken.
3. In how many ways can a chairman and vice-chairman of
a board of 6 members can occupy their seats??

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Permutations-: In permutation we have different
arrangement of certain numbers of objects, say r at time
from n different objects without repetition.
Permutation of n different things-:
1. Permutation of n different things taken r at a time, when
r≤n are nPr = n!/(n-r)!
2. The number of permutations of n different things all at a
time is n!
3. The number of permutations of n different things taken
r at a time in which each thing is repeated r times in any
arrangement is nr.

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1. Find how many four letter words can be formed out of
the word LOGARITHMS.
2. In how many ways 5 passengers can be seated in a
compartment having 16 vacant seats??
3. If np4 = 12 np2 , find n.
4. Indicate how many 4 digit numbers greater than 7000
can be formed from the digits 3,5,7,8,9.
5. A number of four different digits is formed by using the
figures 1,2,3,4,5,6,7 in all possible ways. How many of
these are greater than 3400??

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4. For finding the number greater than 7000 the first digit can be
any of the 7, 8 ,9 . Now the first digit can be selected in 3 ways
and the remaining three digits can be any of the four digits left
, which can be chosen in 4P3 ways . Therefore ,
the total number of ways = 3* 4P3=72.
5. Since the number is to be greater than 3400, the extreme left
position in the four digit number should be occupied by one of
the digits 3,4,5,7,6and accordingly we have two cases to
consider.
Case1. The extreme left position is occupied by 3.
cont…..

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 In this case , the second position from left can be filled up by
any of 4,5,6,7, i.e. 4 ways. Having filled up the first two
positions from the left, the remaining two positions can be
filled up by the remaining 5 digits in 5P2 ways.
Hence by fundamental principle of counting ,the total number
in this case = 1*4*20=80
Case2. The extreme left position is occupied by 4,5,6 or 7.
Thus in this case the extreme left positions can be filled up in 4
ways . Having filled the first position the remaining 3 positions
can be filled by the remaining 6 digits in 6P3 ways .Hence, the
total number of numbers in this case is 4* 6P3= 480.
Thus the total number of numbers greater than 3400 that can be
formed using four different digits from 1,2,3,4,5,6,7 is
80+480=560.

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6. Find how many different 4 digit numbers greater than
7000 can be formed from the digits
3,4,7,8 and 9. (2013)
7. How many numbers of six digits can be formed by using
the digits 4,5,6,7,8,9 no digits being repeated in any
number?? How many of them are not divisible by 5??

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6. Digits to be used are 5.
Case1. When repetition of digits is not allowed .
In this case for first extreme left place we have 3 choices.
And for remaining three places we have 4 choices . So first
extreme left place can be filled up by 3 ways and remaining
3 places can be filled up in 4P3 ways .Hence the total
number of numbers in this case = 3*4P3=72.
Case2. When repetition is allowed.
In this case for extreme left position we have 3 choices .
And for the remaining positions we have 5 choices . Hence
remaining three positions can be filled up in 5*5*5 ways .
Hence the total number of numbers in this
case=3*5*5*5=375.
Thus the total required number of numbers =72+375=447.

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7. Total number of numbers of six digits that can be formed by
using the digits 4,5,6,7,8,9 is 6P6=720.
We know that any number that is not divisible by 5 can not
have either 0 or 5 at the unit’s place.
i.e. for unit place we have 5 choices and for the remaining
positions we have also 5 choices.
i.e. remaining positions can be filled up in 5P5 ways.
Hence the total number of numbers of six digits which are not
divisible by 5 = 5*5P5=600.

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1. The number of permutations of n distinct objects taken r
at a time , when a particular object always occurs in each
arrangement , is r* (n-1)P(r-1)
2. The number of permutations of n distinct objects taken r
at a time , when a particular object is never to be
included in any arrangement , is n-1Pr
3. The number of distinct permutations of n objects(not
necessarily all distinct) of which n1 are of one kind,n2 of
a second kind……, nk of kth kind , is given by
n!/n1!*n2!*…. nk ! .

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1. How many words can be formed by the letters of word
“EXAMINATION” taken all together? How many of them
have no two vowels coming together??
2. Find the number of permutations of the word “HREETI”.

3. Find the number of arrangements that can be made out of

the letters of the words “SUCCESS” so that all S do not come
together.
4. In how many ways can the letters of the word “SQUARE” be
arranged so that the vowels occupy only even places??
5. How many words can be formed from the letters of the
word “FATEHPUR” when
(i) the three letters “PUR” occur together??
(ii) vowels occurs at even places??

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6. In how many ways can the letters of the word
“ACCOUNTANT” be arranged? In how many of these,
vowels are always together?? (2007)
7. How many numbers between 300 and 3000 can be
formed with the digits 0,1,2,3,4 and 5, no digit being
repeated in any number?
8. How many different numbers of 5 digits can be formed
from the ten digits 0,1,2,3,4,5,6,7,8,9, no digit being
repeated in any number? How many 5 digit numbers will
be formed if the repetition is allowed??
9. In how many ways can 8 examination papers be
arranged so that the best and the worst papers never
come together?? (2008)

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1. (ii) The word EXAMINATION has six vowels namely E ,A ,I
,A ,I and O of which A and I are repeated twice. To find
the number of words in which no two vowels come
together , we first find the number of words in which
these 5 vowels are always together.
To do so we regard them as tied together , forming only
one letter , so that the number of letters in the word
examination may be taken as 11-6+1=6.(AEIAIO= one
letter)
Thus the number of arrangements of these 6 letters is
given by 6!/2! .
However , the number of ways in which 6 vowels can be
arranged among themselves given by 6!/2!*2! Conti…

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∴ The number of words that can be formed using letters of
the word EXAMINATION so that vowels are always
together is given by 6!*6!/8 = 64800.
∴ The number of words which can be formed by the letters
of the word EXAMINATION so that no two vowels are
together = (total number)-(number of words when
vowels are always together)=4989600-64800 =
4924800.

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Solution7:- The positive integers divisible by 5 which are
greater than 3000 and less than 4000 and which can be
formed with the digits 3,4,5,6,7 and 8 will start with 3
and end with 5.
Hence for extreme left place we have 1 choice and for
unit place also we have 1 choice ,the remaining 2
positions can be filled up by the remaining 4 digits in 4P2
ways.
Hence the required number of positive
integers=1*4P2*1=12.

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Solution9:-
Let us regard the best and worst papers tied together, so that the
number of papers may be taken as 7.
These papers can be arranged in 7! Ways and the best and worst
papers can be arranged among themselves in 2!ways.
∴ The total no. of ways in which 8 papers can be arranged so that
the best and worst papers are never separated is given by 7!*2!.
Further, the number of ways in which 8 papers can be arranged
without restriction= 8!.
Hence, the number of ways in which 8 papers can be arranged so that the best
and worst papers never come together=8!-7!*2!=30240.

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Combination-: A selection of r objects, neglecting the order
of selection, from n distinct objects is called a
combination of n objects taken r at a time.
The number of combinations of n different objects taken r at
a time is given by nCr=n!/r!*(n-r)!
Some standard results in combinations-:
1. The total number of ways in which it is possible to make
a selection by taking some or all of n different things is
given by 2n-1.
2. The total number of ways in which it is possible to make
a selection by taking some or all out of n things, where
n1 things are alike of one kind, n2 things are alike of a
second kind and so on is given by{(n1+1)(n2+1)……}-1.

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1. Show that nPr = r! nCr. (2010)
2. nC =1 and nC =1.
0 n
N C = nC
3. r n-r. (2010)
nC + nC
r-1 =
n+1C
4. r r (2005 , 2007)
5. Find the value of r if 20Cr = 20Cr+2 (2013)
6. A box contains 7 red, 6 white and 4 blue balls. How
many selections of three balls can be made so that
(i) none is red (ii) one is of each colour ?
7. A question paper contains 10 questions divided into two
groups of 5 questions each. In how many ways can a
examinee answer 6 questions taking at least 2 questions
from each group?? 10 marks (2013 and 2009)

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9. In how many ways can a committee of 3 ladies and 4
gents be chosen from 8 ladies and 7 gents? What is the
number of ways if Miss X refuses to serve if Mr. Y is a
member?
10. From 6 gentleman and 4 ladies, a committee of 5 is to
be formed. In how many ways can this be done if
(i) the committee is to include at least one lady,
(ii) there is no restriction about its formation.

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• Matrices.
• Inverse of a matrix.
• Properties of the inverse.
• Echelon form of a matrix.
• Rank of a matrix by determinants method.
• Rank of a matrix using echelon form.
• Solution to a system of equations.
• Application of matrices to business problems.
• Input-Output Analysis.
• Preparation of depreciation lapse schedule.

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Elementary Row Operations—Notation

We use the following notation to describe

the elementary row operations:
Symbol Description
Change the ith row by adding
Ri + kRj → Ri k times row j to it.
Then, put the result back in row i.

Ri ↔kRi Multiply the ith row by k.

Ri ↔ Rj Interchange the ith and jth rows.

Echelon Form Of a Matrix:

A matrix whose all elements below it’s

principle diagonal are zero is called a
matrix in it’s echelon form.
1 3 6 10 0 1 3 0 0 0
Example: 0
 0 1 4 3  0
 0 1 0 3 
0 0 0 1 1
2
0 0 0 1 1
2
   
0 0 0 0 0 0 0 0 0 0
     
Leading 1's shift to Leading 1's have
the right in 0's above and
successive rows. below them.
Determination of Rank of a Matrix using Echelon Form of
a Matrix:

Working Rule:
1. Convert given matrix to it’s echelon form.
2. Find the number of nonzero principle diagonal
elements.
3. Rank of Matrix = Number of nonzero principle
diagonal elements.
 Solving the system of equations by matrix inversion
method:

Working Rule:-
1. Write the given system of equations in matrix form AX=B.
2. Find determinant of A.
CASE1: If detA ≠ 0 ⇨ A-1 exist. Find A-1 and apply X= A-1B.
in this case unique solution exist.
CASE2: If detA=0 ⇨ A-1 does not exist.
We can have two possibilities now
(a) If (adjA)B = 0 , then given system of equation is consistent and
have infinitely many solutions.
(b) If (adjA)B ≠0, then given system of equation is inconsistent
 Matrix method for solving homogeneous system of
equations :

Working Rule:-
1. Write the given system of equations in matrix form AX=O.
2. Find determinant of A.
3.(a) If detA≠0, then the system is consistent and will have a unique
solution. x=y=z=0.
(b) if detA=0, then the system is consistent with infinitely many
solutions.
∴ Put z=k and solve any two equations for x and y in terms of k.
 Matrix method for solving homogeneous system of
equations :

Working Rule:-
1. Write the given system of equations in matrix form AX=O.
2. Find determinant of A.
3.(a) If detA≠0, then the system is consistent and will have a unique
solution. x=y=z=0.
(b) if detA=0, then the system is consistent with infinitely many
solutions.
∴ Put z=k and solve any two equations for x and y in terms of k.
 Gauss Jordan /Gauss elimination Method:-
This method can be used for both homogeneous and non-homogeneous
equations:
Working Rule:
1. Write the given system of equations in matrix form i.e. AX=B.
2. Construct the augmented matrix [A|B] by introducing the vector B to
the right of the coefficient A .
3. use elementary row operation to transform the [A|B] matrix in it’s
echelon form. Then the system of equations can be solved easily.
 Application of Matrices to Business Problems:
1. A company produces three products everyday. Their total production
on a certain day is 45 tonnes. It is found that the production of third
product exceeds the production of the first product by 8 tonnes while
the total production of first and third product is twice the production
of second product. Determine the production level of each product,
using matrix algebra.
2. An amount of Rs 650000 is invested in three investments at rates of
6% , 8% and 9% per annual respectively. The total annual income is
Rs. 48000. The income from the third investment is Rs. 6000 more
than the income from the second investment. Using matrix algebra,
determine the amount of each investment.
 Application of Matrices to Business Problems:
3. a manufacturer can produce two different products A and B that
requires two machine operations: grinding, turning. The machine hrs
requirements per unit of product are given below for A and B . The
total machine hours available for grinding are 24, for turning 38. find
how much units of A and B are produced during a given time period.
Using matrix inversion method.

A B
Grinding 2 5
Turning 3 8
 Application of Matrices to Business Problems:
4. A, B and C have Rs. 1250,Rs.1700 and Rs 2100 respectively. They
utilized the amount to purchase three types of shares of price x, y and
z respectively.
A purchased 20 shares of price x, 50 shares of price y and 30 shares
of price z.
B purchased 44 shares of price x, 30 shares of price y and 60 shares of
price z.
C purchased 12 shares of price x, 40 shares of price y and 100 shares
of price z. find x,y,z.
 Application of Matrices to Business Problems:
4. two companies A and B are holding shares in each other. A is
holding 20% shares of B and B is holding 10% shares of A. if the
separately earned profits of the two companies are Rs. 98000 and
Rs.49000 respectively, find the total profit of each company using
matrix algebra. Also show that the total of the profits allocated to
outside shareholders is equal to the total of separately earned profits.
5. To control a certain crop disease it is necessary to use 8 units of
chemical A, 14 units of chemical B and 13 units of chemical of C.
one barrel of spray ‘P’ contains one unit of A, 2 unit of B and 3 unit
of C and one barrel of spray ‘Q’ contains two unit of A, 3 unit of B
and 2 unit of C. one barrel of spray ‘R’ contains one unit of A, 2 unit
of B and 2 unit of C. find how many barrels of each type of spray be
used to just meet the requirments.
 Preparation of depreciation lapse schedule:
Depreciation :- Decrease in the value of the fixed assets like
car,machinery etc. is called the depreciation.
Scrap Value:- The value of a depreciable asset at the end of its useful life
is called the scrap value.
Total Depreciation:-The difference between the original cost and the
scrap value is the total depreciation.
Book Value:- Book value at given date is the original cost minus
accumulated depreciation at that time.
Straight Line Method:- In this method, the annual depreciation of the
asset is found by dividing the total depreciation by the number of
years in useful life.
 Preparation of depreciation lapse schedule:
Sum of years digit method:- In this method, depreciation will be more in
earlier years of life of asset and will go on diminishing as time
passes. The fraction of the asset to be depreciated each years
determined by putting the digits in reverse order over the sum of the
digits of life periods.
Question1. An equipment costing Rs. 50000 has an estimated useful life
of 4 year with a salvage value of Rs. 10000. Find the annual
depreciation and construct a schedule for depreciation using straight
line method and then by the sum of years digit method.
Question2. A machine costing Rs. 30000 have a useful life of 5 years and
final scrap value of zero find the annual depreciation using straight
line method and then by the sum of years digit method.
 Preparation of depreciation lapse schedule:
Question3. A firm purchases three machines M1, M2,M3 costing Rs.
45000,Rs. 30000 and Rs.60000 respectively. Each has five years
useful life and scrap value zero. Find the depreciation of each
machine for each years using matrix notation it(1) all the machines
are depreciated by sum of years digit method.(2) all are depreciated
by straight line method.
Question4. A firm purchases two machines costing Rs. 10000 and Rs.
20000 respectively. Each machine is having useful life of 4 years and
both have Rs. 5000 as salvage value at the end of 4 years. Find
depreciation of each machine for each year using straight line method
and then by the sum of years digit method. ( 7 marks)
 Input – Output analysis:

Input Industry 1 Industry 2 ………….. Industry n Final Total

Output demand output
Industry 1 X11 X12 ……… X 1n C1 x1
Industry 2 X21 X22 ……….. X2n C2 x2
Industry3 X 31 X32 ……….. X 3n C3 x3
. . . . . .
. . . . . . .
. . .. . . . .
. . . . . . .
. . . . . . .
Industry n Xn1 Xn2 …………. Xnn Cn xn
 Input – Output analysis:
Then the coefficient matrix
a11 a12 a13………………..a1n
a21 a22 a23………………..a2n
A = a31 a32 a33………………..a3n
. ………………………………….
an1 an2 an3 ann

where aij = xij/xj. d1

let us assume final demand changes to d2

dn
 Input – Output analysis:
Then, if y1
X= y2
is the output matrix to meet the final demand D.
.
.
yn
Then X= (I-A) -1 D, where I is the identity matrix.
The matrix (I-A) is called the leiontif matrix.
Hawkins-Simon Conditions for the Viability of the
System:
1. The determinant of (I-A) must be positive
2. the diagonal elements of (I-A) must be less than
1.
 Input – Output analysis:
Q1. suppose the inter-industry flow of the products of two industries is
given as :

Consumption Consumption Y Domestic Total

X
Demand/ Output
Final
demand
Production X 30 40 50 120

Production Y 20 10 30 60

Determine the technology matrix and test Hawkins- Simon Conditions for the viability
of the system. Find the total output vector when demand vector is 80
40
 Input – Output analysis:
Q2. suppose the inter-industry flow of the products of two industries is
given as :

Consumption Consumption Y Domestic Total

X
Demand/ Output
Final
demand
Production X 300 600 100 1000

Production Y 400 1200 400 2000

Determine the technology matrix and test Hawkins- Simon Conditions for the viability
of the system. Find the gross output vector when demand vector is 200
800
 Input – Output analysis:

Q3. two products A and B are produced such that .4 ton of A

and .7 ton of B are required to produce a ton of A.
0.1 ton of A and 0.6 ton of B are needed to produce a ton of B.
Write down a technology matrix. If 68 tons of A and 102 tons of
B are required, find out the gross production of both of them.
Q4. you are given the following technology matrix for a two
industry economy.

Steel Coal
Steel 0.2 0.2
Coal 0.4 0.1

Write down the input-output table for the economy, when the final demand target
are Rs.100crore in steel and Rs.20crore in coal.
 UNIT III

• Absolute and local maxima and minima.

• Point of inflexion
• Lagrangian multipliers.
• Derivative as a rate measure.
• Applications in business.
 Local Maximum and Minimum:-
Definition:
• A function f has a local maximum (or relative maximum) at c
if f(c) ≥ f(x) when x is near c.

•Similarly, f has a local minimum at c if f(c) ≤ f(x) when x is near

c.
 Absolute Maximum and Minimum:-

•A function f has an absolute maximum (or global maximum)

at c if f(c) ≥ f(x) for all x in D, where D is the domain of f. The
number f(c) is called maximum value of f on D.

•Similarly, f has an absolute minimum at c if f(c) ≤ f(x) for all x

in D and the number f(c) is called the minimum value of f on D.

•The maximum and minimum values of f are called the extreme

values of f.
 Example:

Absolute maximum
(also local maximum)

Local maximum
Local minimum

Local minimum

Absolute minimum
(also local minimum)
 Local Maximum and Minimum:-

Stationary Point:
a point where derivative is zero is called a stationary point.
Second Derivative Test For Local Extrema :
Step1: Find f ′ (x) .
Step2: Set f ′ (x)=0 and solve for x to get stationary points.
Step3: for each stationary point c, determine f ′ ′ (c) .
Step4: If f ′ ′ (c) > 0 then f has a local minimum at c.
Step5: if f ′ ′ (c) < 0 then f has a local maximum at c.
• Inflection Point: where f '' ( x) = 0 and f’’’(x)≠0.
 Local Maximum and Minimum:-

Example: Find the local extrema of the

function f (x) = x3 – 1.5x2 – 6x + 5.
Solution: f ′ (x) = 3x2 – 3x – 6 = 3(x + 1)(x - 2) ,
so f ′ (x) =0 at x=-1 and x=2
f ′ ′ (x) = 6x - 3
f ′ ′ (-1) = 6*(-1) – 3 = -9 < 0, so x = -1 is a local maximum
f ′ ′ (2) = 6*2 – 3 = 9 > 0, so x = 2 is a local minimum
Example: find the point of inflection of the curve
f (x) = x3 – 3x2 +3x .
Example: find the local extrema of the function
f (x) = X4-8x3 +22x2 -24x+1 .
 Lagrange multipliers:-

• suppose we wish to maximize or minimize a function

z=f(x,y) of two variables x and y subject to a single
constraint g(x,y)=0.
• We introduce a new variable ℷ, called the Lagrange
multiplier, and construct the function
F(x,y, ℷ)=f(x,y)- ℷg(x,y).
• Put Fx =0, Fy=0 , Fℷ=0
• find x,y and ℷ .
• find hessian determinant at these points.
• Then the function is maximum when determinant is positive
and minimum when determinant is negative.
• If f ′ (x)>0 for all x in an interval (a b), then f(x) is increasing
on (a b) and if f ′ (x)<0 for all x in an interval(a b), then f(x)
is decreasing on (a b).
 Lagrange multipliers:-

Question1 :
optimize the utility function U= 4xy-y2 subject to the
constraint 2x+y=6.
Question2: optimize Z= 4X2-2xy+6y2 , subject to x+y=72.
Question3:
A company produces two products at a total cost
C(x,y)=18X2+9y2 , where x and y represent the units
produced of each product. Find the number of units of each
product that will minimize cost if there must be a total of 54
units.
 Application Of Differential Calculus:-

 Total Cost Function:- The total cost of producing x units of

a commodity is denoted by a function C(x) called total cost
function.
 Fixed Cost:-It is independent of the quantity produced.
 Variable Cost:- It depends upon the amount of output and
varies with it such as labour, materials etc.
 Total Cost= Fixed Cost+ Variable Cost.
 Average Cost:- AC=C/x
 Marginal Cost:- It is defined as the rate of change of the
total cost when x units are produced. It is denoted by
MC=dC/dx
 Marginal Average Cost:- MAC= d(AC)/dx.
 Application Of Differential Calculus:-

Relation between AC and MC:-

1. When AC is decreasing, MC<AC
2. When AC is minimum, AC=MC.
3. When AC is increasing, MC>AC.
Total Revenue:- Total revenue function R=px, where p is the
price per unit and x is the units of demanded commodity.
Average Revenue: -The average revenue, AR= R/x =px/x=p.
Marginal Revenue:-The marginal revenue, MR=dR/dx.
Point Elasticity:-The point elasticity of the function y=f(x) at the
point x is denoted by η= (x/y)(dy/dx)
 Application Of Differential Calculus:-

Price(point) Elasticity Of Demand: - If p=f(x) be a demand function then

ηd = (-p/x)(dx/dp) .
Categories Of Elasticity
1. When | ηd |=1⇨demand is said to have unit elasticity.
2. When 0<| ηd |<1 demand is inelastic.
3. When 0<| ηd |< ∞ ⇨demand is elastic.
4. When | ηd |=0⇨demand is perfectly inelastic.
5. When | ηd |= ∞ ⇨demand is perfectly elastic.
Supply Elasticity of Demand:- ηs =(p/x)(dx/dp)
Elasticity of Cost:- ηC = (x/C)(dC/dx)
Elasticity of Average Cost:- ηAC =(x/AC)(dAC/dx)

Relationship between MR,AR and ηd :-

MR= AR(1-1/ ηd )
ηd = AR/(AR-MR).
Total Profit= R(x)-C(x)
 Application Of Differential Calculus:-

1. If a manufacturer’s total cost function is C= 0.1x2+3, find

(a) AC (b)MC © the marginal cost when x=4. (d) MAC
2. The average cost function for a commodity is given by
AC=x+5+36/x , where x is the output. Find the output for
which AC is increasing and the output for which AC is
decreasing . Also find the total cost and marginal cost .
3. If x=25-3p- P2 be a demand function, find the point
elasticity of demand at p=3.
4. If the demand curve is of the form p=a℮-kx , where p is the
price and x is the demand, prove thet the elasticity of
demand is 1/kx .
5. For the demand curve aQ+bP-K=0, where a,b and K are
positive constants. Determine the point elasticity of
demand when marginal revenue is zero. (2008).
 Application Of Differential Calculus:-
6. The marginal cost C’(x)=300+x/20 and R’(x)=400,x being
the number of units produced. Determine the profit
function, if fixed cost is 5000.
7. A firm has following marginal revenue and marginal cost
functions: MR= 50-4x and MC= 20+2x. Find break-even
points.
8. Given the cost function C=4x+450 and revenue function
R=46x-0.1x2 -450. Find
(a) MR (b) MC © AC.
9. for the curve xpn =c, where c and n are constants, show
that the price elasticity of demand is constant.
10. The total cost function of a product is given by
C(x)=x3-315x2+27000x-20000, where x is the number of
units produced. Determine the number of units that should
be produced to minimize the total cost.
 Applied Max-Min Problems:-
11. The total cost of producing q units of certain product is described by the
function C=4860+750000q+15q2 ,where C is the total cost stated in
rupees. Determine how many units should be produced in order to
minimize the average cost per unit. (2008)
12. A multi-product firm produces two commodities X1 and X2 whose prices
per units are 12 and 18 respectively . Assuming the firm’s cost function as
C(x)= X12 +2X1X2 +3X12 , obtain the optimum level of it’s products which
maximize profit. (2009)
13. Given the demand function p= (10-q)2 and cost function TC= 55q-8q2 , find
the maximum profit. (2008)
14. The demand function for a particular commodity is
p=15 ℮-x/3 for 0≤x≤8 where price per unit and x is the number of units
demanded. Determine the price and quantity for which total revenue is
maximum. (2009)
15. Given MC=20+x/30and MR= 35. The fixed cost is 2500. Determine the
maximum profit and the profit maximizing level of output.
(15marks)(2009)
 UNIT IV
• Consumer’s and Producer’s surplus.
• Business applications.
• Learning Curve.
• Differential Equations.
 Consumer’s And Producer’s Surplus:-
Consumer ‘s Surplus:- Let p = f(x) be the demand law where p is the price that
a consumer is willing to pay for a quantity x of a particular commodity .
Again, suppose p=g(x) is the supply function where p is the price that a
producer is willing to charge for a quantity x of a particular product. The
point of intersection of the demand curve and the supply curve is called
the equilibrium point E. The coordinates of E are (xe pe) where pe is
the market price at which a consumer is willing to pay for and a producer
is willing to sell for the particular commodity with demand xe .
In a free market economy, sometimes the consumers would be willing to
pay more for a commodity than the market price pe that they actually
have to pay. The benefit of this to the consumers i.e. the difference
between what consumers are willing to pay and what they would
actually pay in the absence of price discrimination is called
consumer’s surplus (CS)

C(x) = - pe xe .
 Consumer’s And Producer’s Surplus:-
CS under pure competition:- Under pure competition, the price is
determined by solving the demand and supply equation. For this value of
pe , we obtain corresponding value of xe and CS be calculated by given
formula.
CS under monopoly :- Under monopoly, the producer has the power to
choose price to maximize his profit. Here we solve MR=MC for x and get
the output level xe and then determine pe = f(xe). Then CS can be
calculated by given formula.
Producer’s surplus:- In a free market economy, there are also times
when some producers would be willing to charge a price lower than the
market price pe that the consumer actually pays. The difference between
the actual price at which a quantity is supplied and the minimum price at
which producers are willing to supply is called the producer’s surplus
(PS).
PS= pe xe -
 Consumer’s And Producer’s Surplus:-
Q1. The demand function for a commodity is given by p=100-8x. Find the
consumer’s surplus corresponding the market price p=4.
Q2. The demand law for a commodity is p=20-2x- x2 . Find the
consumer’s surplus when market demand is 3.
Q3. The supply curve for a commodity is p=√9+x and the quantity sold is
7 units. Find the producer’s surplus. Can you find the consumer’s surplus
?
Q4. A monopolist’s demand function is x=210-3p, where x is the quantity
demanded when price is Rs. p per unit. With the average cost function
AC= x+6+10/x. find the consumer surplus at the price which monopolist
will like to fix.
Q5. find the producer surplus and consumer surplus under perfect, given
the demand function: x=25/4 – p/8 and supply function p= 5+x.
 Learning Curve:
Rate Of Sales:
When the rate of sales of a product is a known function of t, say f(x),
where x is a time measure, then the total sales of the product during the
time interval (a, b) is given by

The general form of all learning curve is: f(x)= c xα , -1≤α<0 , c>0. where
f(x) is the number of hours of direct labour required to produce the xth
unit
• If a learning curve is known, the total number of labour-hour required to
produce units numbered a through b is
N=
 Learning Curve & Rate of Sales:
Q1. after an advertising campaign, a product has a sales rate f(t) given by
f(t)= 1000 ℮-0.5t , where t is the number of months since the close of
campaign. Find the total sales after three months.
Q2. The purchase price of a car is Rs. 75000. The rate of cost for repairs
is given by C=6000(1- ℮-0.5t ) , where t represents the years of use since
purchase. Find the cumulative repair cost at the end of 5 years.
Q3. Currently a firm is manufacturing 5000 items per day. It is estimated
that the rate of change of production P with respect to additional number
of workers x is given by dP/dx = 100-6 X1/2 . If the firm employs 16
workers more , estimate the new level of production.
Q4. A company manufacturing T.V. sets determines that it’s production
facility is following a learning curve of the form f(x)=1400 x-0.3 after
producing 100 T.V. sets, where f(x) denotes the rate of labour hours. How
many total labour hours are required to produce 200 additional units?