MAT 113 Tung Nguyen-UIS

Section 1.4: Functional Models

Objectives: In this section, we will learn:

X how to convert real-life problems to math problems.

X what supply curve, demand curve, and equilibrium point are.

X what break-even point is.

To be able to apply mathematical methods to solve real-life problems, we first need to

learn how to convert real-life problems to math problems. We will learn how to do that
in this section.

1. General Guideline in Converting Real-Life Problems to Math Problems

Step 1: Read the problem carefully to understand the question(s) being asked;

Step 2: If possible, draw a diagram or picture which describes the real-life problem;

Step 3: Introduce notations to the unknown quantities involving in the problem;

Step 4: Label the diagram (or picture) in Step 2 and summarize the real-world
problem. Use the notations introduced in step 3 if needed.

Step 5: Use proper techniques to find the answer(s) for the question(s) being asked.

Example 1: A manufacturer estimates that it costs $14 to produce each unit of a particular
commodity that sells for $23 per unit. There is also a fixed cost of $1200.

a. Express the cost and revenue as functions of the number of units that are produced
and sold.

b. What is the profit function for this commodity?

c. How much profit is generated when 2000 units of the commodity are produced?

Solution: We will use the above general guideline to convert this problem to a math
problem.

Step 1: Read the problem carefully to understand the question(s) being asked;

There are 3 questions being asked.

Step 2: If possible, draw a diagram or picture which describes the real-life problem.

There is no diagram or picture needed. So, we can skip this step.

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MAT 113 Tung Nguyen-UIS

Step 3: Introduce notations to the unknown quantities involving in the problem;

The unknown quantities in this problems are the revenue, the cost, the profit, and
the number of units that are produced and sold. We will denote the revenue by R
(initial of the word Revenue), the cost by C (initial of the word Cost), the profit by
P (initial of the word Profit), and the number of units produced and sold by x.
Z Remark: The above notations are not restricted. You can use other letters if you
prefer to do so.

Step 4: Label the diagram (or picture) in Step 2 and summarize the real-world
problem. Use the notations introduced in step 3 if needed.

Cost per unit = $14, Sell price per unit = $23, fixed cost = $1200.

Step 5: Use proper mathematical method(s) to find the answer(s) for the question(s)
being asked.

a. Express the cost and revenue as functions of the number of units that are
produced and sold.

Cost = C = fixed cost + variable cost

= 1200+ cost per unit ∗ number of units produced
= 1200 + 14x.
The cost clearly depends on the number of units produced x. Thus, it is a
function of x and we can write C(x) = 1200 + 14x.

Revenue = R = price per unit ∗ number of units sold

= 23x.
The revenue clearly depends on the number of units sold x. Thus, it is a
function of x and we can write R(x) = 23x.

b. What is the profit function for this commodity?

Profit = P = Revenue − Cost

= 23x − (1200 + 14x)
= 23x − 1200 − 14x
= 9x − 1200.
The profit clearly depends on the number of units produced and sold x. Thus,
it is a function of x and we can write P (x) = 9x − 1200.

c. How much profit is generated when 2000 units of the commodity are produced?

When x = 2000, we have P (x) = 9 · 2000 − 1200 = 16800. Hence, there is a

profit of $16800 when 2000 units are produced and sold.

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MAT 113 Tung Nguyen-UIS

Example 2: A landscaper wishes to make a rectangular flower garden that has its length
twice as long as its width. Express the area of the garden as a function of its width.
Solution: We will use the above general guideline to convert this problem to a math
problem.
Step 1: Read the problem carefully to understand the question(s) being asked;

There is 1 question being asked.

Step 2: If possible, draw a diagram or picture which describes the real-life problem.

We can draw a rectangle .

Step 3: Introduce notations to the unknown quantities involving in the problem;

The unknown quantities in this problems are the length, the width, and the area of
the garden. We will denote the garden’s length by y , the garden’s width by x, and
the area of the garden by A.

Z Remark: The above notations are not restricted. You can use other letters if you
prefer to do so.
Step 4: Label the diagram (or picture) in Step 2 and summarize the real-world
problem. Use the notations introduced in Step 2 if needed.

The garden’s length is twice as its width means y = 2x.

Step 5: Use proper mathematical method(s) to find the answer(s) for the question(s)
being asked. We are asked to express the area of the garden as a function of its
width.

Area = A = length ∗ width

= y·x
= (2x) · x (because y = 2x)
= 2x2 .
Therefore, the answer is A(x) = 2x2 .

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MAT 113 Tung Nguyen-UIS

Example 3: A city recreation department plans to build a rectangular playground 3600

square meters in area. The playground is to be surrounded by a fence. Express the length
of the fencing as a function of the length of one of the sides of the playground.
Solution: We will use the above general guideline to convert this problem to a math
problem.

Step 1: Read the problem carefully to understand the question(s) being asked;

There is 1 question being asked.

Step 2: If possible, draw a diagram or picture which describes the real-life problem.

Step 3: Introduce notations to the unknown quantities involving in the problem;

The unknown quantities in this problems are the length, the width, and the length
of the fencing of the garden. We will denote the garden’s length by y , the garden’s
width by x, and the length of the fencing by P .

Z Remark: The above notations are not restricted. You can use other letters if you
prefer to do so.

Step 4: Label the diagram (or picture) in Step 2 and summarize the real-world
problem. Use the notations introduced in step 2 if needed.

The area of the playground is 3600 meter square means xy = 3600.

Step 5: Use proper mathematical method(s) to find the answer(s) for the question(s)
being asked.
Length of the fencing = P = x + y + x + y
= 2x + 2y
To express P as a function of x, we need to replace y by an equivalent expression
in terms of x. This expression can be found by using the fact that xy = 3600. This
3600
implies y = . Hence,
x

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MAT 113 Tung Nguyen-UIS

P = 2x + 2y
3600
= 2x + 2 ·
x
( 3600 )
= 2 x+
x
( 3600 )
Thus the answer is P (x) = 2 x + .
x
Z Remark: We can also express P as a function of y in similar manner.

Example 4: Please read Examples 1.4.1, 1.4.5 on pages 46, 50; and watch the following
videos on Blackboard.

• A Modeling Problem in Construction.

• A Modeling Problem in Manufacturing

2. Supply Curve, Demand Curve, and Market Equilibrium Point

• The unit price p (for some commodity) at which producers are willing to supply x
number of units to the market in general will change with respect to x. Thus, p is a
function of x and often denoted by p = S(x) (S stands for S upply). Naturally, producers
will supply more when the price is high and supply less when the price is low. The supply
curve is the graph of the function p = S(x).
Illustration:

• The unit price p (for some commodity) at which consumers are willing to pay depends
on the number of units x available on the market. Thus, p is a function of x and often
denoted by p = D(x) (D stands for Demand). Naturally, consumers will be willing to pay
at a higher price when there are less units available and lower price when there are more
units available. The demand curve is the graph of the function p = D(x).

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MAT 113 Tung Nguyen-UIS

Illustration:

• The law of supply and demand says that in a competitive market environment, supply
tends to equal demand, and when this occurs, the market is said to be in equilibrium.
Thus, market equilibrium occurs precisely at the production level xe , called equilibrium
quantity, where

S(xe ) = D(xe )

The corresponding unit price pe = S(xe ) = D(xe ) is called the equilibrium price. When
the market is not in equilibrium, it has a shortage when demand exceeds supply (which
means D(x) > S(x)) and a surplus when supply exceeds demand (which means S(x) >
D(x)).
Illustration:

Example 5: Producers will supply x units of a certain commodity to the market when
the price is p = 2x + 15 dollars per unit, and consumers will demand (buy) x units when
385
the price is p = dollars per unit. Find the equilibrium production level xe and the
x+1
equilibrium price pe .

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MAT 113 Tung Nguyen-UIS

Solution: We solve the equation S(x) = D(x) to find xe .

S(x) = D(x)
385
2x + 15 =
x+1
(2x + 15)(x + 1) = 385
2x2 + 17x + 15 = 385
2x2 + 17x − 370 = 0

The above quadratic equation has two solutions x = 10 and x = −37/2. Since x de-
notes for the number of units of certain commodity, x has to be positive. Therefore, we
only accept 10 as the only solution of S(x) = D(x). Hence, xe = 10. Then, we can find
pe = 2xe + 15 = 2 · 10 + 15 = 35.

3. Break-Even Analysis

The break-even point for a company is the stage where the company’s profit is zero
which means revenue is equal to cost. On the Cartesian coordinate system, the break-
event point is the point at which the graphs of the revenue function and the cost function
cross.
Illustration:

Example 6: A manufacturer can sell a certain product for $80 per unit. Total cost consists
of a fixed overhead of $4500 plus production costs of $50 per unit. How many units must
the manufacturer sell to break even?
Solution: The revenue function is R(x) = 80x and the cost function is C(x) = 4500 + 50x
where x is the number of units produced and sold. The break-even point occurs when

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Revenue = Cost. That is,

R(x) = C(x)
80x = 4500 + 50x
30x = 4500
x = 150

Answer: the company has to produce and sell 150 units to break-even.

Example 7: Watch the following video on Blackboard.

• Finding Market Equilibrium.

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MAT 113 Tung Nguyen-UIS

Section 2.1: Average Rate of Change, Instantaneous Rate of

Change, and The Derivative

Objectives: In this section, we will learn:

X how to compute the average rate of change of a given function on a given interval
[a, b].
X how to find the instantaneous rate of change of a given function at a given value.
X the concept of the derivative of a given function.
X the concept of increasing, decreasing functions.
X what the derivative tells us about increasing/decreasing property of the graph of a
function.

This is one of the more challenging sections in this class. We will learn this section
in a more informal way than what is used in the textbook. The approach I use here
allow you to avoid having to deal with many technical details of the concepts of lim-
its. You should rely on my lecture notes to do the homework for this section. If you are
familiar with the approach used in the book, I have no problem with you using that ap-
proach. In general, the approach used in the textbook is a more algebraically difficult one.

1. Average Rate of Change of A Function

The average rate of change of a function f is the ratio between total change
in f -value and the total change in x-value. On an interval [a, b], the total
change in f -value is f (b) − f (a) while the total change in x-value is b − a.
Thus, the average rate of change of a function f on a given interval [a, b]
is computed by the following quotient
f (b) − f (a)
Average rate of change of f on [a, b] =
b−a

Z Remark:
f (b) − f (a) Total change in f -value
• =
b−a Total change in x-value
• The unit of the average rate of change are the unit of f per unit of x.

Example 1: Let f (x) = x2 + 2x. Compute the average rate of change of f on the interval
[1, 3] and the interval [1, 1.1].
Solution: The total change of f -value on the interval [1, 3] is
f (3) − f (1) = (32 + 2 · 3) − (12 + 2 · 1) = 15 − 3 = 12
while the total change in x-value is 3 − 1 = 2. Thus,

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MAT 113 Tung Nguyen-UIS

f (3) − f (1)
The average rate of change of f on [1, 3] =
3−1
12
=
2
= 6

The total change of f -value on the interval [1, 1.1] is

f (1.1) − f (1) = (1.12 + 2 · 1.1) − (12 + 2 · 1) = 3.41 − 3 = 0.41

while the total change in x-value is 1.1 − 1 = 0.1. Thus,

f (1.1) − f (1)
The average rate of change of f on [1, 1.1] =
1.1 − 1
0.41
=
0.1
= 4.1

Example 2: At a certain factory, it is determined that an output of Q √ TVs is to be

expected when h worker-hours of labor are employed where Q(h) = 2000 h. Find the
average rate of change of output as the labor employment between 2025 worker-hours and
2500 worker-hours. What is the unit of the average rate of change?
Solution: In this problem, the output Q is the function while the hours h assumes the
role of the independent variable x in the general setting. Find the average rate of change
of output as the labor employment changes from 2025 worker-hours to 2500 worker-hours
means we need to find the average rate of change of output Q on the interval [2025, 2500].

The total change of Q-value on the interval [2025, 2500] is

√ √
Q(2500) − Q(2025) = 2000 2500 − 2000 2025 = 10000

while the total change in x-value is 2500 − 2025 = 475. Thus,

10000
The average rate of change of Q on [2025, 2500] =
475
≈ 21.05

The unit of the average rate of change is the unit of Q (TV) per unit of h (hour). Hence,
it is TV per hour or TV/hour. Thus, the average rate of change of output as the labor
employment changes from 2025 worker-hours to 2500 worker-hours is 21.05 TVs/hour.

Next, we will learn that the average rate of change of a function f on a given interval
[a, b] can be interpreted geometrically as the slop a a secant line.

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MAT 113 Tung Nguyen-UIS

2. Average Rate of Changes as Slope of the Secant Line

Recall that secant lines of a given graph are lines which intersect the graph at two different
points. The secant line passing through two points A(a, f (a)) and B(b, f (b)) on the graph
of f as shown in the following figure.

has the slope, denoted by mAB , computed by the formula

f (b) − f (a)
mAB =
b−a
which is the same as the formula used to compute the average rate of change of a function
f on a given interval [a, b] we just learned on previous page! Thus, we can conclude that

f (b) − f (a)
Average rate of change of f on [a, b] = mAB =
b−a

In other words, the average rate of change of a function f on a given interval [a, b] can be
interpreted geometrically as the slope of the secant line connecting two points A(a, f (a))
and B(b, f (b)).

Example 3: Let f (x) = x2 + 2x.

a. Compute the average rate of change of f on the interval [1, 3].

b. Compute the slope of the secant line of the graph of f which passes through the
point A(1, f (1)) and B(3, f (3)).

c. Verify the claim

“The average rate of change of f on [a, b] is the same as the slope of the straight
line connecting two points A(a, f (a)) and B(b, f (b)) on the graph of f .”

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MAT 113 Tung Nguyen-UIS

Solution:

a. We did this question in Example 1 and got the average rate of change of f on the
interval [1, 3] = 6.

b. The points A(1, f (1)) and B(3, f (3)) are A(1, 3) and B(3, 15). The slope of the
secant line of the graph of f which passes through the point A(1, 3) and B(3, 15) is
15 − 3
mAB = =6
3−1

c. The claim is confirmed!

3. Infinitesimal and The Concept of Approaching/Converging

An infinitesimal is an extremely small number in the sense that it is smaller than any
positive number we can think of but it is not equal to zero. A typical scenario when
such number can be seen is when we let a number b approaches as closely as possible
to a number a but never touches a. It is clear that the length of the interval [a, b] or
equivalently the distance between a and b gets infinitely smaller as b approaches a. the
length of the interval [a, b] or equivalently the distance between a and b is an infinitesimal
because

• it is not equal to 0 (since b never touches a) and

• it is smaller than any positive number we can think of. To see this, we pick any
really small number d we can think of. Then, in the process of approaching to a,
b will eventually gets sufficiently close to a so that the distance between a and b is
d/2 which is smaller than d.

4. Instantaneous Rates of Change of a Function (Also Called The Derivative)

Let’s revisit an example we discussed earlier in this section.

Example 4: At a certain factory, it is determined that an output of Q√TVs is to be ex-

pected when h worker-hours of labor are employed where Q(h) = 2000 h.

We learned how to find the average rate of change of output between two levels of labor
which is in terms of worker-hours. An interesting question comes up at this point is how
to find the rate of change of the TV output at a single level of labor. For example, what
is the rate of change of the TV output exactly at the moment when 2500 worker-hours of
labor was employed?

Although the average rate of change of output between 2025 worker-hours and 2500
worker-hours reflects somewhat the rate of change of the TV output at the 2500 worker-
hours level but the accuracy is not very good since the average is taken over a larger
interval from 2025 to 2050. To improve the accuracy, we need to compute the average

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MAT 113 Tung Nguyen-UIS

of the output on much smaller intervals, the smaller is the better. We typically find the
averages rate of change on the following shrinking intervals containing 2500:

[2500, 2500.1], [2500, 2500.01], [2500, 2500.001], , [2500, 2500.0001]

Most of the time, the above averages rate should give a clear pattern for us to make an
educated guess on what the rate of change of the TV output the 2500 worker-hours level.
Let’ compute those averages to figure the pattern. The more decimal places used, the
easier it is to see the pattern. Use at least 5 decimal places when computing the average
rates of change.

I am going to use 10 decimal places in this example.

• The total change of Q-value on the interval [2500, 2500.1] is

√ √
Q(2500.1) − Q(2500) = 2000 2500.1 − 2000 2500

while the total change in x-value is 2500.1 − 2500 = 0.1. Thus,

√ √
2000 2500.1 − 2000 2500
The average rate of change of Q on [2500, 2500.1] =
0.1
≈ 19.9998000039

• The total change of Q-value on the interval [2500, 2500.01] is

√ √
Q(2500.01) − Q(2500) = 2000 2500.01 − 2000 2500

while the total change in x-value is 2500.01 − 2500 = 0.01. Thus,

√ √
2000 2500.01 − 2000 2500
The average rate of change of Q on [2500, 2500.01] =
0.01
≈ 19.9999800003

• The total change of Q-value on the interval [2500, 2500.001] is

√ √
Q(2500.001) − Q(2500) = 2000 2500.001 − 2000 2500

while the total change in x-value is 2500.001 − 2500 = 0.001. Thus,

√ √
2000 2500.001 − 2000 2500
The average rate of change of Q on [2500, 2500.001] =
0.001
≈ 19.9999980026

• The total change of Q-value on the interval [2500, 2500.0001] is

√ √
Q(2500.0001) − Q(2500) = 2000 2500.0001 − 2000 2500

while the total change in x-value is 2500.001 − 2500 = 0.0001. Thus,

√ √
2000 2500.0001 − 2000 2500
The average rate of change of Q on [2500, 2500.0001] =
0.0001
≈ 19.9999998074

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MAT 113 Tung Nguyen-UIS

The averages rate of changes show a clear pattern of getting closer to 20. Thus, we can
make an educated guess that when the the interval around 2500 keeps shrinking infinites-
imally, the rate of the TV output the 2500 worker-hours level is 20 TVs/hour.

Z The rate of the TV output the 2500 worker-hours level is also called the instantaneous
rate of change of the TV output at 2500. The word “instantaneous” is used to reflect the
fact that we are talking about the rate at a single level of labor.

The instantaneous rate of change (or simply rate of change) of a function f at

x = a (a is a given number) is found by
1) computing the averages rate of change of f on the intervals
[a, a + 0.1], [a, a + 0.01], [a, a + 0.001], and [a, a + 0.0001]
2) and then make an educated guess on the instantaneous rate of change based
on the pattern shown in the values of the four average rates of change computed.
Z The more decimal places used, the easier it is to see the pattern. Use at least
5 decimal places when computing the average rates of change.
The long terminology “instantaneous rate of change” is often replaced by the
shorter terminology “the derivative”. We denote the derivative of f at x = a,
or simply the derivative of f at a by the notation f ′ (a) ( read “f prime at a”).

Example 5: Given the function f (x) = 5x2 − 3. Find the instantaneous rate of change of
f at x = 1.

Solution: In this problem a = 1. We will compute the averages rate of change of f on

four intervals [a, a + 0.1], [a, a + 0.01], [a, a + 0.001], and [a, a + 0.0001] which are

• [1, 1 + 0.1] = [1, 1.1],

• [1, 1 + 0.01] = [1, 1.01],

• [1, 1 + 0.001] = [1, 1.001],

• [1, 1 + 0.0001] = [1, 1.0001].

f (1.1) − f (1) (5 · 1.12 − 3) − (5 · 12 − 3)

Average rate of change = = = 10.50000
1.1 − 1 0.1
on [1, 1.1]
f (1.01) − f (1) (5 · 1.012 − 3) − (5 · 12 − 3)
Average rate of change = = = 10.05000
1.01 − 1 0.01
on [1, 1.01]
f (1.001) − f (1) (5 · 1.0012 − 3) − (5 · 12 − 3)
Average rate of change = = = 10.00500
1.001 − 1 0.001
on [1, 1.001]

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MAT 113 Tung Nguyen-UIS

f (1.0001) − f (1) (5 · 1.00012 − 3) − (5 · 12 − 3)

Average rate of change = = = 10.00050
1.0001 − 1 0.0001
on [1, 1.0001]

Answer: The averages rate of changes show a clear pattern of getting closer to 10. Thus,
we can make an educated guess that when the the interval around 1 keeps shrinking
infinitesimally, the instantaneous rate of change of f at x = 1 is 10.

Example 6: Find the derivative of the function f (x) = 5x2 − 3 at x = 1.

Solution: Recall that the derivative of the function f at x = 1, denoted by f ′ (1), is the
same as the instantaneous rate of change of f at x = 1 which we already found in the
previous example. Therefore, the derivative of the function f at x = 1 is 10 which is
expressed in mathematical notation as f ′ (1) = 10.

5. Slope of The Tangent Line To The Graph of A Function f at x = a

We will learn next how to obtain the slope the tangent line at a given point A(a, f (a)) on
the graph of a given function f .

The difficulty we face here is that there is only one point A(a, f (a)) on the tangent line
with known coordinates. We learned in College Algebra class that coordinates of two
different points on the line are needed to find the slope of that line. Since the line of
interest here is a tangent line, we do not have a way to find the coordinates of the second
point! To overcome this difficulty, we use the same idea used to find instantaneous rate
of change from averages rate of changes. That is, to use the slopes of the scant lines on
intervals around x = a that are shrinking infinitesimally to obtain the slope of the tangent
line. Below are figures illustrating the fact that these secant lines get closer and closer to
the tangent line when the b approaches to a which causes the size of the interval [a, b] to

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MAT 113 Tung Nguyen-UIS

shrink to zero but never equal to 0 because b never touches a. Obviously, when the secant
lines get closer and closer to the tangent line, their slopes also get closer and closer to the
slope of the tangent line.

Let b move closer to a on the next figure.

Let b continue to move even closer to a on the next figure.

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MAT 113 Tung Nguyen-UIS

6. Geometric Interpretation of The Derivative

We have seen that the average rate of change of a function f on an interval [a, b] is the
slope mAB of the secant line passing through two points A(a, f (a)) and B(b, f (b)) on the
graph of f . Thus, we have

When b approaches to a, the average rate of change of a function f on [a, b] gets closer
and closer to the instantaneous rate of change of f at a while the slope mAB of the secant
line gets closer to the slope of the tangent line to the graph of f at point (a, f (a)). We
can add these facts to the above figure.

Therefore, we can conclude that

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MAT 113 Tung Nguyen-UIS

The above important conclusion is summed up below.

The slope of the tangent line to the graph of f at the point (a, f (a)) is equal to
the derivative of the function f at a. That is,
m = f ′ (a).

Example 7: Find the slope of the tangent line to the graph of the function f (x) = 5x2 − 3
at the point (1, 2) (notice that f (1) = 2). Then, find the equation of this tangent line.
Solution: The slope of the tangent line to the graph of the function f (x) = 5x2 − 3 at the
point (1, 2) is given by m = f ′ (1). In Example 5, we already found this derivative to be
10. Hence, m = f ′ (1) = 10. The equation of this tangent line can be obtained by using
the point-slope form:
y − 2 = 10(x − 1) ⇒ y = 10x − 8.

7. Increasing, Decreasing Properties of Functions

• A function is increasing if the value of f (x) increases as x increases. The graph of an

increasing function climbs as x moves from left to right.
Illustration: Both of the following functions are increasing functions.

• A function is decreasing if the value of f (x) decreases as x increases. The graph of a

decreasing function descends as x moves from left to right.
Illustration: Both of the following functions are decreasing functions.

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MAT 113 Tung Nguyen-UIS

8. What does the derivative tell us graphically?

The derivative of a function provides us a lot of information about its graph, such as
increasing/decreasing property, local maxima and local minima,. . . We will use the fol-
lowing well-known facts later in Chapter 3. I will repeat these facts again but it is good
to have a first look at them.

• If f ′ > 0 on an interval (a, b) (which means f ′ (x) > 0 for all x in (a, b)),
then the graph of f is increasing on (a, b).
• If f ′ < 0 on an interval (a, b) (which means f ′ (x) < 0 for all x in (a, b)),
then the graph of f is decreasing on (a, b).

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