4.

6 Optimization
In this section, our goal is to be able to do the following:

1. Relate the concept of Absolute Extrema to Optimization

2. Use Absolute Extrema in the procedure of solving optimization problems

3. Deduce the function to be optimized given an optimization problem

4. Solve optimization problems of different types:

(a) Maximizing area, perimeter, or similar problems

(b) Maximizing revenue or profit

Day 1: Introduction and Problems involving Area or Perimeter

From the name itself, optimization deals with finding the highest or lowest values of certain
attributes in a given problem. One example of a problem involving optimization is when we’re
given a budget for a rectangular fence, and we want to maximize the area while staying within
the budget. In this particular problem, we want to optimize the ”area” attribute given the
constraint of the budget for the fence. Another possible optimization problem is when we’re
given the price-demand equation of a particular product as well as its cost function. For this
scenario, a possible problem to be solved is how many items to produce in order to maximize
revenue or profit.

When we want to optimize a certain attribute such as area or profit, we usually take the absolute
extrema of the function which models that particular attribute. Recall that absolute extrema
gives us the largest or smallest values of a given function over an interval, if they exist. Hence,
it is logical to use these absolute extrema when solving for optimization problems. Later on
when we do optimization problems, this will be clear.

There are many different types of optimization problems ranging from minimizing the cost of
piping across a river and the riverbank to analyzing the cost-effectiveness of flying different
airline routes. However, for the purposes of this course as well as in the interest of time, we
will only be tackling two types of optimization problems:

1. Area and Perimeter Problems 2. Revenue or Profit Problems

In many optimization problems, we aren’t given any functions immediately from the statement
of the problem. We are then required to deduce the function to be optimized as well as any
constraints to be factored into the optimization problem. Thus, this is an essential skill when
solving these types of problems.
To solve optimization problems, we present a general procedure to follow. Even though we
have a step-by-step process to follow, it’s also important to understand why we do these steps
instead of just memorizing the procedure.

Procedure: Strategy for Solving Optimization Problems

1. Introduce variables, look for relationships among the variables, and

construct a mathematical model of the form

Max (or min) f (x) on the interval I

2. Find the critical numbers of f (x).

3. Find the relevant absolute extrema of f (x) on the interval I and the
x’s where this occurs.

4. Use the solution to the mathematical model to answer all the questions
asked in the problem.

Note that in the procedure above, f (x) is to be only a function of one variable. In the case
where you get a function to be optimized and it is a function of two or more variables, you
must be able to transform this function into a function of only one variable by exploring the
various constraints to the problem.

First, we try our hand at area and perimeter problems, more specifically, maximizing area.

Example 1: Maximizing Area (P. 304)

A homeowner has $320 to spend on building a fence around a rectangular

garden. Three sides of the fence will be constructed with wire fencing at a
cost of $2 per linear foot. The fourth side will be constructed with wood
fencing at a cost of $6 per linear foot. Find the dimensions and the area of
the largest garden that can be enclosed with $320 worth of fencing.

Try this problem out first before moving on. You should get the following. The dimensions of
the garden with the maximum area of 800 ft.2 are 20 ft. x 40 ft., with one 20-foot side of wood
fencing.
The area of the rectangular garden is given by product of the lengths of the height and width
of the rectangle, which gives us A = xy, where x is the width of the rectangle and y is the
height. Without loss of generality, we assume that the side with the wood fencing is on the
width. This means that the total cost of producing the fence is given by:

Cost = 2y + 2x + 2y + 6x = 8x + 4y = 320

This gives us the optimization problem:

Max A = xy, subject to 8x + 4y = 320

What we want to do next is to make the function to be maximized into a function of only one
variable, say x. From 8x + 4y = 320, we get y = 80 − 2x, which we can substitute into the
original optimization function:

Max A(x) = x(−2x + 80) = −2x2 + 80x

To maximize the area A(x), we must first get the domain of the function. We know that the
sides of a rectangle must be positive, so we get x ≥ 0 and y ≥ 0. From y ≥ 0, we can get
x ≤ 40:

y = 80 − 2x ≥ 0 ⇒ 2x ≤ 80 ⇒ x ≤ 40

This gives us the final domain of x ∈ [0, 40] or 0 ≤ x ≤ 40. Next, we want to find the critical
numbers, and we can get this by getting the zeroes of the derivative of the area function A(x):

A0 (x) = −4x + 80 = 0 ⇒ x = 20

Thus, our singular critical number is x = 20. Finally, we want to evaluate A(x) on the critical
number x = 20 and the end points of the domain: x = 0 and x = 40.
Substituting the critical numbers and end points:

x A(x)
0 0
20 800
40 0

Here, we see that the highest value of the area is when x = 20, which gives a total area of 800
ft.2 . Since y = 80 − 2x, substituting x = 20 gives us y = 80 − 2(20) = 40.

Thus, the dimensions of the rectangle which maximizes area is 20 ft. x 40 ft. with one of the 20
ft. sides being fenced by wood. This gives us the maximized area of 800 ft.2 with $320 worth
of fencing.

Note: In the illustration above, we coincidentally set x to be the longer side of the rectangle
and y to be the shorter side. When we got the dimensions of the rectangle which optimized the
area, we got x = 20 and y = 40. Even though this is contradictory to the original illustration
we made, it does not matter. The illustration only serves as a guide to set up the necessary
functions and does not affect the final answer.

If you want to see this problem solved in a video, click on the link below:

https://youtu.be/bn5hRtfCQMM

Next, we do an example on minimizing perimeter.

Example 2: Minimizing Perimeter (P. 306)

Refer to Example 1. The homeowner judges that an area of 800 square

feet for the garden is too small and decides to increase the area to 1,250
square feet. What is the minimum cost of building a fence that will enclose
a garden with an area of 1,250 square feet? What are the dimensions of this
garden? Assume that the cost of fencing remains unchanged.

Like with the first example, try this problem out first before moving on. You should get
the following. The minimum cost for enclosing a 1,250-square foot garden is $400, and the
dimensions are 25 ft x 50 ft, with one 25-foot side of wood fencing.
This extension of the first example puts a spin on the procedure from the first problem. In
example 1, the area was the function to be optimized and cost of the fencing was the constraint.
Now, things are the other way around; the cost of the fencing is the function to be optimized
and the area is the constraint:

Cost = 8x + 4y, and Area = xy = 1250

This gives us the optimization problem:

Min C = 8x + 4y, subject to xy = 1250

Similar to Example 1, we want to make the function to be minimized into a function of only
1250
one variable, say x. From xy = 1250, we get y = , which we can substitute into the
x
original optimization function:
 
1250 5000
Min C(x) = 8x + 4 = 8x +
x x

Like Example 1, we must first get the domain of the function C(x). This time, since our
constraint is xy = 1250, neither x nor y can be equal to zero, so we get x > 0 and y > 0.

1250
y>0 ⇒ >0
x

1250
> 0 will be true only for positive values of x. Thus, this gives us the final domain of
x
x ∈ (0, +∞). Next, we want to find the critical numbers. We get the derivative C 0 (x) and find
the critical numbers:

5000
C 0 (x) = 8 − ⇒ x = 25
x2

5000
From 8 − , we’re actually supposed to get 3 critical numbers: x = −25, 0, 25, but since our
x2
domain is (0, +∞), we take only x = 25.

Since our domain isn’t a closed interval, we can’t use the same method as in Example 1 to find
the absolute extrema. We will have to use the second derivative test on our singular critical
number to determine if it is an absolute minimum:

10, 000 10, 000

C 00 (x) = ⇒ C 00 (25) = = 0.64 > 0
x3 253

Since C 00 (25) > 0, x = 25 is an absolute minimum. This gives us the minimum cost of
5000 1250 1250
C(25) = 8(25) + = $400. Since y = , substituting x = 25 gives us y = = 50.
25 x 25
Thus, the dimensions of the rectangle which minimizes cost is 25 ft. x 50 ft. with one of the 25
ft. sides being fenced by wood. This gives us the minimized cost of $400 with an area of 1250
ft.2 .

Day 2: Problems involving Revenue or Profit

We now move on from problems involving area and begin to tackle business-related problems.
The next few problems will tackle trying to optimize (maximize) revenue or profit given a
price-demand equation.

Before continuing on with the lesson, now might be a good time to review Marginal Analysis in
Business and Economics as the next few problems will bring back concepts from that section.

Example 3: Maximizing Revenue (P. 307)

An office supply company sells x permanent markers per year at $p per

marker. The price-demand equation for these markers is p = 10 − 0.001x.
What price should the company charge for the markers to maximize rev-
enue? What is the maximum revenue?

Again, try this problem out first before moving on. You should get the following. The company
will realize a maximum revenue of $25,000 when 5,000 markers are manufactured annually and
sold for $5 each.

Recall from Marginal Analysis in Business and Economics that we can get revenue from the
equation: Revenue = (Quantity)(Price) or R = xp. We are also given the price-demand
equation: p = 10 − 0.001x.

In this problem, since we want to optimize revenue, our function to be optimized is the revenue
function and our constraint is the price-demand equation:

Revenue = xp, and Price = 10 − 0.001x

This gives us the optimization problem:

Max R = xp, subject to p = 10 − 0.001x

As with the previous problems, we want to transform the function to be optimized into a
function of only one variable. We can easily substitute p = 10 − 0.001x:

Max R(x) = x(10 − 0.001x) = 10x − 0.001x2

Next, we must find the domain of the function R(x). Recall from Marginal Analysis that
demand (or quantity) can’t be negative and price can’t be negative as well, so we have x ≥ 0
and p ≥ 0. From p ≥ 0, we can get x ≤ 10, 000:

p = 10 − 0.001x ≥ 0 ⇒ 0.001x ≤ 10 ⇒ x ≤ 10, 000

This gives us the final domain of x ∈ [0, 10000] or 0 ≤ x ≤ 10, 000. Next, we want to find
the critical numbers, and we can get this by getting the zeroes of the derivative of the revenue
function R(x):

R0 (x) = 10 − 0.002x = 0 ⇒ x = 5000

Thus, our singular critical number is x = 5000. Finally, we want to evaluate R(x) on the critical
number x = 5000 and the endpoints of the domain: x = 0 and x = 10, 000.

Substituting the critical numbers and end points:

x R(x)
0 0
5000 25000
10000 0

Here, we see that the highest value of revenue is when x = 5000, which gives a total revenue of
$25000. Since p = 10 − 0.001x, substituting x = 5000 gives us p = 10 − 0.001(5000) = 5.

Thus, the maximum revenue of $25000 can be achieved by selling each marker at $5 per marker,
which would generate a demand of 5000 markers per year.

Next, we extend the previous example by adding a cost function in order to be able to optimize
a profit function.
 Example 4: Maximizing Profit (P. 308)

Refer to Example 3. The total annual cost of manufacturing x permanent

markers for the office supply company in Example 3 is

C(x) = 5000 + 2x

What is the company’s maximum profit? What should the company charge
for each marker, and how many markers should be produced?

Try this problem out first before moving on. You should get the following. The company will
realize a maximum profit of $11,000 when 4,000 markers are manufactured annually and sold
for $6 each.

Now, we extend Example 3 by adding the Cost Function C(x) = 5000 + 2x. We will reuse the
following from Example 3: R(x) = 10x − 0.001x2 and p = 10 − 0.001x. Recall from Marginal
Analysis that Profit = Revenue − Cost or P (x) = R(x) − C(x):

P (x) = R(x) − C(x) = 10x − 0.001x2 − (5000 + 2x) = 8x − 0.001x2 − 5000

This gives us the optimization problem:

Max P (x) = 8x − 0.001x2 − 5000

Since our function to be optimized is already a function of just one variable, we can move on.

Since we’re adopting the same price-demand equation from Example 3, we have the same
domain here in Example 4. This gives us the final domain of x ∈ [0, 10000] or 0 ≤ x ≤ 10, 000.
Next, we want to find the critical numbers, and we can get this by getting the zeroes of the
derivative of the profit function P (x):

P 0 (x) = 8 − 0.002x = 0 ⇒ x = 4000

Thus, our singular critical number is x = 4000. Finally, we want to evaluate P (x) on the critical
number x = 4000 and the endpoints of the domain: x = 0 and x = 10, 000.
Substituting the critical numbers and end points:

x P (x)
0 −5000
4000 11000
10000 −25000

Here, we see that the highest value of profit is when x = 4000, which gives a total profit of
$11000. Since p = 10 − 0.001x, substituting x = 4000 gives us p = 10 − 0.001(4000) = 6.

Thus, the maximum profit of $11000 can be achieved by selling each marker at $6 per marker,
which would generate a demand of 4000 markers per year.

From here on, no more solutions will be given, just the final answers. The next example modifies
the cost function of the company in Examples 3 and 4 by introducing a government tax on each
marker produced.

Example 5: Maximizing Profit (P. 309)

Refer to Examples 3 and 4. The government decides to tax the company

in Example 4 $2 for each marker produced. Taking into account this addi-
tional cost, how many markers should the company manufacture annually
to maximize its profit? What is the maximum profit? How much should
the company charge for the markers to realize the maximum profit?

You should get the following. The company will realize a maximum profit of $4,000 when 3,000
markers are manufactured annually and sold for $7 each.

Remark: Examples 3-5

Even though the tax caused the company’s cost to increase by $2 per marker,
the price that the company should charge to maximize its profit increases
only by $1. The company must absorb the other $1, with a resulting de-
crease of $7,000 in maximum profit.

This decrease in the overall welfare of both the producer and the consumer
is called a ”Deadweight Loss” in Economics. This concept should be ex-
pounded upon in your Introduction to Economics course.
For more examples and explanations on optimization, the following video series by Khan
Academy is suggested.

https://tinyurl.com/KhanAcademyCalcOptimization

Day 3: Exercises

The following are some exercises on 4.6 Optimization taken from the reference book:

9. Find two numbers whose sum is 13 and whose product is a maximum.

10. Find two numbers who sum is 19 and whose product is a maximum.

11. Find two numbers whose difference is 13 and whose product is a minimum.

12. Find two numbers whose difference is 19 and whose product is a minimum.

13. Find two positive numbers whose product is 13 and whose sum is a minimum.

14. Find two positive numbers whose product is 19 and whose sum is a minimum.

15. Find the dimensions of a rectangle with an area of 200 square feet that has the minimum
perimeter.

16. Find the dimensions of a rectangle with an area of 108 square feet that has the minimum
perimeter.

17. Find the dimensions of a rectangle with a perimeter of 148 feet that has the maximum
area.

18. Find the dimensions of a rectangle with a perimeter of 76 feet that has the maximum
area.

19. Maximum Revenue and Profit

A company manufactures and sells x smartphones per week. The weekly
price-demand and cost equations are, respectively,
p = 500 − 0.4x and C(x) = 20, 000 + 20x

(A) What price should the company charge for the phones, and how many
phones should be produced to maximize the weekly revenue? What is
the maximum weekly revenue?

(B) What is the maximum weekly profit? How much should the company
charge for the phones, and how many phones should be produced to
realize the maximum weekly profit?
20. Maximum Revenue and Profit
A company manufactures and sells x cameras per week. The weekly price-
demand and cost equations are, respectively,
p = 400 − 0.5x and C(x) = 2, 000 + 200x

(A) What price should the company charge for the cameras, and how many
cameras should be produced to maximize the weekly revenue? What
is the maximum weekly revenue?

(B) What is the maximum weekly profit? How much should the company
charge for the cameras, and how many cameras should be produced to
realize the maximum weekly profit?

21. Maximum Revenue and Profit

A company manufactures and sells x television sets per week. The monthly
cost and price-demand equations are, respectively,
x
C(x) = 72, 000 + 60x and p = 200 − 30 , 0 ≤ x ≤ 6000

(A) Find the maximum revenue.

(B) Find the maximum profit, the production level that will realize the
maximum profit, and the price the company should charge for each
television set.

(C) If the government decides to tax the company $5 for each set it pro-
duces, how many sets should the company manufacture each month to
maximize its profit? What is the maximum profit? What should the
company charge for each set?

22. Maximum Revenue and Profit

Repeat Problem 21 for
x
C(x) = 60, 000 + 60x and p = 200 − 50
, 0 ≤ x ≤ 10000

25. Maximum Revenue

A deli sells 640 sandwiches per day at a price of $8 each.
(A) A market survey shows that for every $0.10 reduction in price, 50
more sandwiches will be sold. How much should the deli charge for a
sandwich in order to maximize revenue?

(B) A different market survey shows that for every $0.20 reduction in the
original $8 price, 15 more sandwiches will be sold. Now how much
should the deli charge for a sandwich in order to maximize revenue?
26. Maximum Revenue
A university student center sells 1,600 cups of coffee per day at a price of
$2.40
(A) A market survey shows that for every $0.05 reduction in price, 50 more
cups of coffee will be sold. How much should the student center charge
for a cup of coffee in order to maximize revenue?

(B) A different market survey shows that for every $0.10 reduction in the
original $2.40 price, 60 more cups of coffee will be sold. Now how
much should the student center charge for a cup of coffee in order to
maximize revenue?

27. Car Rental

A car rental agency rents 200 cars per day at a rate of $30 per day. For
each $1 increase in rate, 5 fewer cars are rented. At what rate should the
cars be rented to produce the maximum income? What is the maximum
income?

28. Rental Income

A 300-room hotel in Las Vegas is filled to capacity every night at $80 a
room. For each $1 increase in rent, 3 fewer rooms are rented. If each rented
room costs $10 to service per day, how much should the management charge
for each room to maximize gross profit? What is the maximum gross profit?

29. Agriculture

A commercial cherry grower estimates from past records that if 30 trees

are planted per acre, then each tree will yield an average of 50 pounds of
cherries per season. If, for each additional tree planted per acre (up to 20),
the average yield per tree is reduced by 1 pound, how many trees should
be planted per acre to obtain the maximum yield per acre? What is the
maximum yield?
 30. Agriculture

A commercial pear grower must decide on the optimum time to have fruit
picket and sold. If the pears are picked now, they will bring 30 cents per
pound, with each tree yielding an average of 60 pounds of salable pears.
If the average yield per tree increases 6 pounds per tree per week for the
next 4 weeks, but the price drops 2 cents per pound per week, when should
the pears be picked to realize the maximum return per tree? What is the
maximum return?

Answer Key:
√ √
9. 6.5 & 6.5 14. 19 & 19
√ √
10. 9.5 & 9.5 15. x = 10 2 & y = 10 2
√ √
11. -6.5 & 6.5 16. x = 6 3 & y = 6 3

12. -9.5 & 9.5 17. x = 37 & y = 37

√ √
13. 13 & 13 18. x = 19 & y = 19

19. (A) Maximum revenue is $156,250 when 625 phones are produced and sold for $250 each.
(B) Maximum profit is $124,000 when 600 phones are produced and sold for $260 each.

21. (A) Maximum revenue is $300,000

(B) Maximum profit is $75,000 when 2,100 sets are manufactured and sold for $130 each.
(C) Maximum profit is $64,687.50 when 2,025 sets are manufactured and sold for $132.50
each.

25. (A) The deli should charge $4.80 per sandwich in order to maximize revenue.
(B) The deli should charge $8 per sandwich in order to maximize revenue.

27. The car rental agency should rent cars at a rate of $35 per day to achieve a maximum
income of $6,125.

29. 40 trees should be planted per acre to obtain the maximum yield of 1,600 pounds.

Day 4: Quiz