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Lec 9 Application of Diff PDF
Lec 9 Application of Diff PDF
Lec 9 Application of Diff PDF
Applications of Differentiation
1 1st Derivative Test
Increasing and Decreasing Functions Critical Points
Md. Azad Uddin
Relative Maxima and Minima
2 2nd Derivative Test BSc
(Hon’s) & MS in Applied Statistics, University of Dhaka MA in Development Economics, Hiroshima University
If f /(x) > 0 for all x in an open interval I, then f is increasing over I.
2
If f /(x) < 0 for all x in an open interval I, then f is decreasing over I.
Critical Points
For determining increasing or decreasing behavior using a derivative, the interval I is an open interval;
that is, it does not include its endpoints. These values are examples of critical values. Critical Points
Definition (Critical Points) Let f be a function and c be a point in its domain. We call c a Critical point for
f if f /(c)=0or f /(c) is undefined.
Finding Critical Point(s)
1
Find f /(x)
2
Critical Points
1st Derivative Test Critical Points
Critical Points
Example Find the critical points of the function
1
p(x)=(x2 − 3x)e-0.5x
Md. Azad Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management,
Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 9/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
1st Derivative Test Critical Points
1st Derivative Test Relative Maxima and Minima
(x)=6x
2
− 4x
3
=0 =⇒ x = 0,
3 2
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Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 15/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
1st Derivative Test Relative Maxima and Minima
is a relative maximum.
Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management, Md. North Azad South
Uddin University (NSU) November 12, 2018 Applications 17/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
1st Derivative Test Relative Maxima and Minima
Concavity
The “turning” behavior of a graph is called its concavity. The second derivative plays a pivotal role in
analyzing the concavity of a function’s graph.
Concavity
Md. Azad Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management,
Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 21/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
2nd Derivative Test Relative Maxima and Minima
Inflection Points
2nd Derivative Test Relative Maxima and Minima
2nd Derivative Test Inflection Points
Inflection Points
Inflection Points
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North South University November 12, 2018 29/58
2nd Derivative Test Inflection Points
Inflection Points
Determine intervals of concavity and find the inflection points for the function
g(x)=3x4 − 20x3 + 17 (1)
Find g’ and g” Find where g”(x) is 0, x=0 or 10/3 make a sign chart for g” at 0 and 10/3
(−∞,0), second derivative is positive , concave up (0,10/3), second derivative is negative, concave down (10/3,∞),
second derivative is positive , concave up
inflection points (0,f (0)), and (10/3,f (10/3))
Md. Azad Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management,
Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 31/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
2nd Derivative Test Inflection Points
+ 3200x − 80000
demand equation for your snow boards is
How many apartments should they rent in order to maximize their profit?
p = $20 − x/10
Solution
(At $20 per rental you wont sell any) and the cost equation is
All that we’re really being asked to do here is to maximize the profit subject to the constraint that x must
be in the range 0 ≤ x ≤ 250. First, we’ll need the derivative and the critical point(s) that fall in the range 0
≤ x ≤ 250. p/(x) = −16x + 3200 =⇒ 3200 − 16x =0 =⇒ x = 200
C =50+3x
($50 fixed costs and $3 per snow board rental). What is the marginal profit in terms of x? What price
should you charge to maximize profits? p(0) = −80000,p(200) = 240000,p(250) = 220000 So, it looks like
they will generate the most profit if they only rent out 200 of the Md. Azad apartments Uddin (NSU)
instead of all Applications 250 of of them.
Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management, Md. North Azad South Uddin University
(NSU) November 12, 2018 Applications 45/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
Applications in Business and Economics Maximization/Minimization
Applications in Business and Economics Maximization/Minimization
Maximization/Minimization
Elasticity
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Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 49/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
Applications in Business and Economics Elasticity
Elasticity
Elasticity is defined as
ε
d
Applications in Business and Economics Elasticity
Economic Applications
dq q
p dp p
q
Example what is the price elasticity of demand when p = 5 and demand is q = 100 − 5.p?
Profits π are a function of output sold given by the function π = 20.q − q2. Which value of q maximizes
profits? Set, π/ =0 =⇒ q = 10. Profits are maximized when marginal costs equal marginal benefits. ε
d
Md. Azad Uddin (NSU) Applications of Diff.
Visiting LecturerSchool of Business and Economics (SBE)Dept. of M =
=
dq dp
.
dq = =⇒ q dp
=
ε p
d
dq dp
.
p q
p 100-5p =⇒ ε
d
Thank
you 3
− 6x
2
− 36x + 41 (2)
on the interval [-4, 10]
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Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 57/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M