Scribd
Upload
26 views

Chapter 4 Differentiation

This document covers differentiation and its applications. It defines the derivative, discusses rules of differentiation, and examines marginal functions. The document also explores increasing and decreasing functions, consumption and savings, and using derivatives to find relative extrema.

Uploaded by

Thư Phạm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
26 views

Chapter 4 Differentiation

This document covers differentiation and its applications. It defines the derivative, discusses rules of differentiation, and examines marginal functions. The document also explores increasing and decreasing functions, consumption and savings, and using derivatives to find relative extrema.

Uploaded by

Thư Phạm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 23

CHAPTER 4

DIFFERENTIATION
SECTION 4.1
TH E D E R I VAT I V E O F A F U N C TI O N

• The slope, or gradient, of a line is taken to be the change in y divided by the corresponding change in x as you
move between any two points on the line.

• Find the slope of the straight line passing through A (1, 2) and B (3, 4)
• A straight line which passes through a point on a curve and which just touches the curve at this point is called a
tangent.

• The difference between the slope of a straight-line and the slope of a curve
• The slope of a straight line is fixed
• The slope of a curve varies as moving along the curve
• f ′(a) (read ‘f dashed of a’) represent the slope of the graph of a function f at x=a
• The notation f(a) gives the height of the curve above the x axis at x = a, whereas f ′(a) gives the gradient of the
curve at this point.
• The slope of the graph of a function is called the derivative of the function.
• In other words, the rule ‘find the slope of the graph of f at x’ defines a function.
• This slope function is usually referred to as the derived function.
• An alternative notation for the derived function is

Example: function y = x2
-> f(x) = x2

f’(-1.5)=
f’(-0.5)=
f’(1.5)=
SECTION 4.2
R U LE S O F D I F F E R EN TI AT I O N

•  The process of finding the derived function symbolically (rather than using graphs) is known as differentiation
• If f(x) = xn then f’(x) = n xn-1 or n xn-1
Example:
• f(x) = x2 -> f’(x)= 2x
• y = x4
• y=
• y=
• y=
• Rule 1: the constant rule

• Rule 2: the sum rule


• (a) y=x5 +x
• Rule 3 the difference rule
• (a) y=x5 −x2
• Rule 4: The function f ′(x) is called the first-order derivative and f ′′(x) is called the second-order derivative.
Evaluate f ′′(6) where f(x) = 4x3 − 5x2
SECTION 4.3
MARGINAL FUNCTIONS

• 4.3.1 Revenue and Cost

• The marginal revenue, MR, of a good is defined by

• The average revenue, AR, is defined by

• Example: The demand curve of a product: P= 100 – 2Q


• Calculate the Total Revenue
• Find the Marginal Revenue when current demand is 15
1. If the demand function is P = 60 − Q find an expression for TR in terms of Q.
• (1) Differentiate TR with respect to Q to find a general expression for MR in terms of Q. Hence write down the exact
value of MR at Q = 50.
• (2) Calculate the value of TR when (a) Q = 50 (b) Q = 51 and hence confirm that the 1-unit-increase approach gives a
reasonable approximation to the exact value of MR obtained in part (1).
2. If the total revenue function of a good is given by 100Q − Q2 write down an expression for the marginal revenue
function. If the current demand is 60, estimate the change in the value of TR due to a 2-unit increase in Q.
3. If the total revenue function of a good is given by 1000Q − 4Q2 write down an expression for the marginal revenue
function. If the current demand is 30, find the approximate change in the value of TR due to a
(a) 3-unit increase in Q;
(b) 2-unit decrease in Q.
MARGINAL COST

•  Marginal cost is the derivative of total cost with respect to output

• If the average cost function of a good is AC= 2Q + 6 +


find an expression for MC. If the current output is 15, estimate the effect on TC of a 3-unit decrease in Q.
• 4.3.2 Marginal product
• The marginal product of any input in the production process is the increase in output that arises from an
additional unit of that input.

Example: Q = 300L1/2 − 4L where L denotes the actual size of the workforce.


Find the marginal product of L 1,9,100 and 2500

• This production function illustrates the law of diminishing marginal productivity (sometimes called the law
of diminishing returns). It states that the increase in output due to a 1-unit increase in labor will eventually
decline.
4.3.3 The relationship between MC,ATC,AVC,AFC
CONSUMPTION AND SAVINGS

• If we assume that national income is only used up in consumption and savings then Y=C+S
• To analyze this behavior we use the concepts
• marginal propensity to consume, MPC

• marginal propensity to save, MPS


EXAMPLE

• If the consumption function is C = 0.01Y 2 + 0.2Y + 50 calculate MPC and MPS when Y =
30.
• If the savings function is given by S = 0.02Y 2 - Y + 100 calculate the values of MPS and
MPC when Y = 40. Give a brief interpretation of these results.
INCREASING AND DECREASING
FUNCTIONS

• A function f is increasing over I if, for every a and b in I,


• if a < b, then f(a) < f(b)
(If the input a is less than the input b, then the output for a is less than the output for b.)
• A function f is decreasing over I if, for every a and b in I,
• if a < b, then f(a) > f(b)
(If the input a is less than the input b, then the output for a is greater than the output for b.)
INCREASING AND DECREASING FUNCTIONS

• THEOREM 1
If f’(x) > 0 for all x in an open interval I, then f is increasing over I.
If f’ (x) < 0 for all x in an open interval I, then f is decreasing over I.
INCREASING AND DECREASING
FUNCTIONS

THEOREM 2
For any continuous function f that has exactly one value c in an open interval (a,b):
F1. f has a relative minimum at c if f’(x) < 0 on (a,c) and f’(x) > 0 on (c,b).
That is, f is decreasing to the left of c and increasing to the right of c.

F2. f has a relative maximum at c if f’(x) > 0 on (a,c) and f’(x) < 0 on (c,b).
That is, f is increasing to the left of c and decreasing to the right of c.

F3. f has neither a relative maximum nor a relative minimum at c if f’(x) has the
same sign on (a,c) as on (c,b).
INCREASING AND DECREASING FUNCTIONS
EXAMPLE

Given the function f(x)= 2x3 – 3x2 – 12x + 12 , find the relative maximum and relative minimum
Solution:
+ find the derivative of f(x)-> f’(x)= 6x2 – 6x -12
+ f’(x) = 0-> x= -1 and x = 2
+ Examine the interval A (- ∞,-1); B (-1,2); and C (2, ∞)
A B C
-1 2
If f’(x) is positive for one value in the interval, then it will be positive for all values in the interval. Similarly, if it is negative for
one value, it will be negative for all values in the interval

+ For A, test f’(-2)=24>0


+ For B, test f’(0)=-12<0
+ For C, test f’(4)=60>0
Þ f has a relative maximum at x=-1, f(-1)= 19
Þ f has a relative minimum at x= 2, f(2)= -8
EXAMPLE

• Find the relative extrema of the function f given by f(x)= 2x3 – x4


THE SECOND-DERIVATIVE TEST FOR RELATIVE EXTREMA

THEOREM 3:
Suppose that f is differentiable for every x in an open interval (a, b) and that
there is a value c in (a, b) for which f’(x) = 0 Then:
1. f(c) is a relative minimum if f’’(c)>0
2. f(c) is a relative maximum if f’’(c)<0

Example: A stereo manufacturer determines that in order to sell x units of a new stereo, the price per unit, in
dollars, must be
P(x) = 1000-x
Total cost: C(x)= 3000 + 20x

a) Find the total revenue .


b) Find the total profit .
c) How many units must the company produce and sell in order to maximize profit?
d) What is the maximum profit?
e) What price per unit must be charged in order to make this maximum profit?
EXAMPLE

Business: Determining a Ticket Price. Promoters of international fund-raising concerts must


walk a fine line between profit and loss, especially when determining the price to charge for
admission to closed-circuit TV showings in local theaters.
By keeping records, a theater determines that at an admission price of $26, it
averages 1000 people in attendance. For every drop in price of $1, it gains 50 customers. Each
customer spends an average of $4 on concessions. What admission price should the theater charge
in order to maximize total revenue?
1. A football team charges $30 per ticket and averages 20,000 people per game. Each
person spend an average of $8 on concessions. For every drop of $1 in price, the
attendance rises by 800 people. What ticket price should the team charge to maximize
total revenue? Calculate the TR max.
2. Find the extrema of f(x)= x3 – 27x- 6

You might also like