MATH FOR BUSINESS 1

Math for Business

Chapter 4: Differentiation

4.3. Marginal function:

Marginal revenue: the effect on TR of a change in the value of Q from some existing
level (Q thay đổi 1 lượng thì ảnh hưởng TR như thế nào)

𝑑(𝑇𝑅)
MR =
𝑑𝑄

Δ(TR) ≅ MR × ΔQ

Marginal cost: derivative of total cost with respect to output (Q thay đổi 1 lượng thì
ảnh hưởng TC như thế nào)

𝑑(𝑇𝐶)
MC = Δ(TC) ≅ MC × ΔQ
𝑑𝑄

PRACTICE
1. A company estimates that the marginal revenue (in dollars per unit) realized by
selling x units of a product is 48 – 0.0012x. Assuming the estimate is accurate, find
the increase in revenue if sales increase from 5,000 units to 10,000 units.

3. A firm’s demand function is given by P = 100 - 4√𝑄 – 3Q

(a) Write down an expression for total revenue, TR, in terms of Q.
(b) Find an expression for the marginal revenue, MR, and find the value of MR when
Q = 9.
(c) Use the result of part (b) to estimate the change in TR when Q increases by 0.25
units from its current level of 9 units and compare this with the exact change in TR(*)

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Marginal product of Marginal propensity to Marginal propensity to

labour consume save

Definition Derivative of output with Derivative of consumption with Derivative of savings with
respect to labor respect to income respect to income

Formula 𝑑𝑄 𝑑𝐶 𝑑𝑆
MPL = MPC = 𝑑𝑌 MPS = 𝑑𝑌
𝑑𝐿

Note Law of diminishing returns

when MPL’ < 0 1 = MPC + MPS

PRACTICE
4. A firm’s production function is given by
Q = 5√𝐿 − 0.1𝐿 .
(a) Find an expression for the marginal product of labour, MPL.
(b) Solve the equation MPL = 0 and briefly explain the significance of this value of L.
(c) Show that the law of diminishing marginal productivity holds for this function.

4.1. If the consumption function is

C = 0.01Y2 + 0.2Y + 50
a) Calculate MPC and MPS when Y = 30
b) Assume that all your money will be seperated into investment, charity, consumtion and
saving with
I = 0.04Y2 + 0.5Y and S = 0.03Y2 + 0.4Y + 20
Find the marginal propensity to charity when Y = 50

4.5. Elasticity:
|E| < 1  inelastic
% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑑𝑒𝑚𝑎𝑛𝑑
ED =
% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑝𝑟𝑖𝑐𝑒
|E| = 1  unit elastic

E=
𝑃𝐴𝑣𝑔
x
∆𝑄
=
𝑃
x
𝑑𝑄 |E| > 1  elastic
𝑄𝐴𝑣𝑔 ∆𝑃 𝑄 𝑑𝑃
𝑑𝑃
point elasticity Lưu ý: Nếu đề cho P theo Q, ta tìm rồi
arc elasticity 𝑑𝑄
(trung bình (thế điểm có 𝑑𝑄
cộng) sẵn) đảo ngược lại sẽ thành
𝑑𝑃

Supply hay demand đều cùng công thức:

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 MATH FOR BUSINESS 3

PRACTICE
5. (a) Find the elasticity of demand in terms of Q for the demand function:
P = 20 - 0.05Q
(b) For what value of Q is demand unit elastic?
(c) Find an expression for MR and verify that MR = 0 when demand is unit elastic.

6. If the supply equation is Q = 7 + 0.1P + 0.004P2

find the price elasticity of supply if the current price is 80.

(a) Is supply elastic, inelastic or unit elastic at this price?
(b) Estimate the percentage change in supply if the price rises by 5%

7. A supply function is given by

Q = 40 + 0.1P2
(a) Find the price elasticity of supply averaged along an arc between P = 11 and P = 13.
Give your answer correct to 3 decimal places.
(b) Find an expression for price elasticity of supply at a general point, P.
Hence:
(b’) Estimate the percentage change in supply when the price increases by 5% from its
current level of 17. Give your answer correct to 1 decimal place.
(b’’) Find the price at which supply is unit elastic. (*)
Global maximum
4.6. Optimisation of economic functions: (Maximum value)

Local maximum

Stationary points
(Critical points,
turning points,
extrema)
Stationary point of
inflection

Global minimum
(Minimum value)

Local minimum

Cách tìm cực đại, cực tiểu:  f ″(a) > 0  pt đạt cực tiểu tại x = a
 f ″(a) < 0  pt đạt cực đại tại x = a
Bước 1: Giải f′(x) = 0 để tìm cực trị, x = a.
 f ″(a) = 0  không thể tìm cực đại
Bước 2: Tìm f′′(a) hay cực tiểu với dữ liệu đề cho

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Cách vẽ đồ thị bậc 3: Bước 3: Kẻ bảng giá trị (bao gồm: giới
hạn, giao trục tung, trục hoành, cực trị)
Bước 1: Tìm TXĐ
Bước 4: Vẽ đồ thị (chú ý: phần < 0 kẻ đứt
Bước 2: Tìm sự biến thiên của hàm số (
khúc vì trong kinh tế không có Q < 0, L <
giới hạn – cực trị – bảng biến thiên)
0,…)
Average product of labour (labour productivity): measures the average output per worker
𝑄
APL =
𝐿

At the point of maximum APL  APL = MPL

𝑑(𝑀𝑅) 𝑑(𝑀𝐶)
At the point of maximum profit  MR = MC and <
𝑑𝑄 𝑑𝑄

PRACTICE
8. The supply and demand equations of a good are given by
1
P = QS + 25 and P = -2QD + 50 respectively.
2
The government decides to impose a tax, t, per unit. Find the value of t which
maximises the government’s total tax revenue on the assumption that equilibrium
conditions prevail in the market

9. The demand and total cost functions of a good are

3𝑄2 𝑄3
4P + Q - 16 = 0 and TC = 4 + 2Q - +
10 20
respectively.
(a) Find expressions for TR, π, MR and MC in terms of Q.
(b) Determine the value of Q which maximises profit.

10. Daily sales, S, of a new product for the first two weeks after the launch is modelled by
S = t3 - 24t2 + 180t + 60 (0 ≤ t ≤ 13)
where t is the number of days.
(a) Find and classify the stationary points of this function.
(b) Sketch a graph of S against t on the interval 0 ≤ t ≤ 13.
(c) Find the maximum and minimum daily sales during the period between t = 5 and
t = 9 (*)

11. A firm’s total cost and demand functions are given by

TC = Q2 + 50Q + 10 and P = 200 - 4Q
respectively.
(a) Find the level of output needed to maximise the firm’s profit.
(b) The government imposes a tax of $t per good. If the firm adds this tax to its costs

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 MATH FOR BUSINESS 5

and continues to maximise profit, show that the price of the good increases by two-fifths
of the tax, irrespective of the value of t. (*)

12. The demand functions for a firm’s domestic and foreign markets are
P1 = 50 - 5Q1
P2 = 30 - 4Q2
and the total cost function is
TC = 10 + 10Q
where Q = Q1 + Q2. Determine the prices needed to maximise profit
(a) with price discrimination
(b) without price discrimination . (*)

Chapter 5: Partial differentiation

5.1. Functions of several variables:

𝑥
𝑧 = 𝑓(𝑥, 𝑦) = 𝑥 2 𝑦 3 + 3𝑥 3 + 6𝑦 + +4
𝑦

𝜕𝑧 1 𝜕2 𝑧
𝑓𝑥 = = 2𝑥𝑦 3 + 9𝑥 2 + 𝑓𝑥𝑥 = = 2𝑦 3 + 18𝑥
𝜕𝑥 𝑦 𝜕𝑥 2

𝜕𝑧 𝑥 𝜕2 𝑧 2𝑥
𝑓𝑦 = = 3𝑥 2 𝑦 2 + 6 − 𝑓𝑦𝑦 = = 6𝑥 2 𝑦 +
𝜕𝑦 𝑦2 𝜕𝑦 2 𝑦3

𝜕2 𝑧 1
𝑓𝑥𝑦 = 𝑓𝑦𝑥 = = 6𝑥𝑦 2 −
𝜕𝑥𝜕𝑦 𝑦2
𝜕𝑧 𝜕𝑧
Small increments formula: ∆z = ∆x + ∆y = 𝑓𝑥 ∆x + 𝑓𝑦 ∆y
𝜕𝑥 𝜕𝑦

𝑑𝑦 𝑓𝑥
Implicit differentiation: if 𝑓(𝑥, 𝑦) = constant then =−
𝑑𝑥 𝑓𝑦

Ex: Find the derivatives of y3 + 2xy2 − x = 5

Ý tưởng: Xem vế trái là 1 phương trình 𝑧 = 𝑓(𝑥, 𝑦) = 5 (constant)  dùng công thức

PRACTICE
1. Find expressions for all first- and second-order partial derivatives of the following
𝜕2 𝑧 𝜕2 𝑧
functions. In each case verify that: = (∗)
𝜕𝑥𝜕𝑦 𝜕𝑦𝜕𝑥

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𝑦 𝑥
a) 𝑧 = 𝑥𝑦 c) 𝑧 = 𝑥 2 + 2𝑥 + 𝑦 e) 𝑧 = 𝑥 2 + 𝑦
b) 𝑧 = 𝑒 𝑥 𝑦 d) 𝑧 = 16𝑥1/4 𝑦 3/4

2. Use the small increments formula to estimate the change in

z = x2y4 - x6 + 4y
when
(a) x increases from 1 to 1.1 and y remains fixed at 0
(b) x remains fixed at 1 and y decreases from 0 to -0.5
(c) x increases from 1 to 1.1 and y decreases from 0 to -0.5.
𝑑𝑦
3. Find the value of at the point (-2, 1) for the function which is defined implicitly by
𝑑𝑥
𝑥
x2y – =6
𝑦

5.2. Partial elasticity and marginal functions:

Q = f(P, PA, Y )

Price elasticity of demand Cross-price elasticity of demand Income elasticity of demand

% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄 % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄 % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑄
EP = EPA = EY =
% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃 % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃𝐴 % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑌

𝑃 𝜕𝑄 𝑃𝐴 𝜕𝑄 𝑌 𝜕𝑄
Formula
= x = x = x
𝑄 𝜕𝑃 𝑄 𝜕𝑃𝐴 𝑄 𝜕𝑌

|EP| < 1 : inelastic E𝑌 < 0: inferior goods

EPA < 0: complementary goods
|EP| = 1 : unit elastic E𝑌 > 0: normal goods
EPA > 0: substitute goods
Note |EP| > 1 : elastic E𝑌 > 1: superior goods
Utility: Satisfaction of buying goods U = U (𝑥1 , 𝑥2 )
Marginal utility of xi:
𝜕𝑈 𝜕𝑈 𝜕𝑈
 With change: ∆U = ∆𝑥𝑖 = ∆𝑥1 + ∆𝑥2 + ⋯
𝜕𝑥𝑖 𝜕𝑥1 𝜕𝑥2
𝜕𝑈 𝜕𝑈
 At point: and
𝜕𝑥1 𝜕𝑥2

Ex: U (20, 5) = 25, U (15, 10) = 30 means that buying 15 of G1 and 10 of G2 will satisfy
customer more that 20 of G1 and 5 of G2

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Law of diminishing utility: the higher x  the lower satisfied rate of 1 unit change in
x (therefore, the indifference curve commonly has downward-slope)
Indifference curve: at A, B people have the same satisfaction. U0 = U (x0, y0)
Marginal rate of commodity substitution (MRCS): 𝑑𝑥2 𝜕𝑈/𝜕𝑥1
MRCS = − =
increase in G2 needed to maintain utility if G1 𝑑𝑥1 𝜕𝑈/𝜕𝑥2

decrease by 1 unit

Marginal rate of technical substitution (MRTS):

PRACTICE
4. Given the demand function
Q = 200 - 2P - PA + 0.1Y 2
where P = 10, PA = 15 and Y = 100, find
(a) the price elasticity of demand
(b) the cross-price elasticity of demand
(c) the income elasticity of demand.
Estimate the percentage change in demand if PA rises by 3%. Is the alternative good
substitutable or complementary?

5. Given the utility function

U = 𝑥11/2 𝑥21/3
determine the value of the marginal utilities

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𝜕𝑈 𝜕𝑈
and
𝜕𝑥1 𝜕𝑥2

at the point (25, 8). Hence

(a) estimate the change in utility when x1 and x2 both increase by 1 unit
(b) find the marginal rate of commodity substitution at this point.

6. Evaluate MPK and MPL for the production function

Q = 2LK + √𝐿
given that the current levels of K and L are 7 and 4, respectively. Hence
(a) write down the value of MRTS
(b) estimate the increase in capital needed to maintain the current level of output
given a 1 unit decrease in labour.

5.3. Unconstrained optimisation:

𝑥
𝑧 = 𝑓(𝑥, 𝑦) = 𝑥 2 𝑦 3 + 3𝑥 3 + 6𝑦 + 𝑦 + 4 (thường là 𝜋 , TR, TC – quy ra 2 biến)

Bước 1: Giải 𝑓𝑥 , 𝑓𝑦 , 𝑓𝑥𝑥 , 𝑓𝑦𝑦 , 𝑓𝑥𝑦

Bước 2: Xét 𝑓𝑥 = 0, 𝑓𝑦 = 0  Stationary points

2
Bước 3: Xét ∆ = 𝑓𝑥𝑥 𝑓𝑦𝑦 − 𝑓𝑥𝑦

֍ Nếu ∆ > 0
o 𝑓𝑥𝑥 < 0, 𝑓𝑦𝑦 < 0  maximum
o 𝑓𝑥𝑥 > 0, 𝑓𝑦𝑦 > 0  minimum
֍ Nếu ∆ < 0  saddle point

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 MATH FOR BUSINESS 9

PRACTICE
7. A monopolist sells its product in two isolated markets with demand functions
P1 = 32 - Q1 and P2 = 40 - 2Q2
The total cost function is TC = 4Q where Q = Q1 + Q2
Find the values of Q1 and Q2 which maximise profi t and calculate the value of the
maximum profit.

8. A firm’s production function is given by

Q = 2L1/2 + 3K1/2
where Q, L and K denote the number of units of output, labour and capital. Labour
costs are $2 per unit, capital costs are $1 per unit and output sells at $8 per unit. Show
that the profit function is
π = 16L1/2 + 24K1/2 – 2L – K (*)

9. An additional cost of $50 per unit is incurred by a firm when selling to its non-EU
customers compared to its EU customers. The demand function is the same in both
markets and is given by
20P + Q = 5000
and the total cost function is given by
TC = 40Q + 2000
where Q is total demand.
Find the maximum profit with price discrimination. (*)

10. A firm is able to sell its product in two different markets. The corresponding demand
functions are
P1 + 2Q1 = 100
2P2 + Q2 = 2a
and the total cost function is
TC = 500 + 10Q
where Q = Q1 + Q2 and a is a positive constant.
Determine, in terms of a, the prices needed to maximise profit
(a) with price discrimination
(b) without price discrimination.

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10 MATH FOR BUSINESS

Show that the profit with price discrimination is always greater than the profit without
discrimination, irrespective of the value of a. (*)

5.4. Constrained optimisation:

Objective function (𝜑): a function subjects to constraintss

With 𝒇(𝒙, 𝒚) and 𝝋(𝒙, 𝒚) = 𝑴

5.4.1. If 𝝋 is simple – linear equations (ax + by = M)

𝑀−𝑏𝑦
 𝑥=  replace 𝑥 in the function 𝑓(𝑥, 𝑦) to become 𝑓(𝑥)
𝑎

Find 𝑓′(𝑥)= 0  x0, y0

Find 𝑓′′(𝑥0 ) (x) to confirm that stationary point is a maximum or a minimum

PRACTICE
11. A firm’s production function is given by
Q = 10K1/2L1/4
Unit capital and labour costs are $4 and $5 respectively and the firm spends a total of
$60 on these inputs. Find the values of K and L which maximise output. (*)

5.4.2. If If 𝝋 is not simple – nonlinear equations (we use Larrange multiplier)

Bước 1: Tìm 1 phương trình mới
g(x, y, λ) = f(x, y) + λ[M - φ(x, y)]
Bước 2: Giải các phương trình sau đồng thời
𝜕𝑔 𝜕𝑔 𝜕𝑔
= 0; = 0, =0
𝜕𝑥 𝜕𝑦 𝜕λ

Bước 3: Giải các biến số và tìm yêu cầu đề

PRACTICE
12. An individual’s utility function is given by
U = 𝑥1 √𝑥2
where 𝑥1 and 𝑥2 denote the monthly consumption of two goods. Unit prices of these
goods are $2 and $4 respectively, and the total monthly expenditure on these goods is

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 MATH FOR BUSINESS 11

$300.
(a) Write down the budgetary constraint.
(b) Show that if the budgetary constraint is satisfi ed the maximum value of U is 500
and write down the corresponding values of x1 and x2. Verify that the stationary
point is a maximum.

13. A monopolistic producer of two goods, G1 and G2, has a joint total cost function
TC = 10Q1 + Q1Q2 + 10Q2
where Q1 and Q2 denote the quantities of G1 and G2 respectively. If P1 and P2 denote
the corresponding prices then the demand equations are
P1 = 50 - Q1 + Q2
P2 = 30 + 2Q1 - Q2
Find the maximum profit if the firm is contracted to produce a total of 15 goods of
either type. Estimate the new optimal profit if the production quota rises by 1 unit.

Chapter 6: Integration
6.1. Indefinite integration:
Integral (anti – derivative or primitive): 𝐹(𝑥) if 𝐹 ′ (𝑥) = 𝑓(𝑥): nguyên hàm

1 1 1 𝑚𝑥
∫ 𝑥 𝑛 d𝑥 = 𝑥 𝑛+1 + 𝑐 ∫ d𝑥 = ln 𝑥 + 𝑐 ∫ 𝑒 𝑚𝑥 d𝑥 = 𝑒
𝑛+1 𝑥 𝑚
+𝑐 +𝑐
PRACTICE
1. (a) Find the total cost if the marginal cost is MC = Q + 5 and fixed costs are 20.
(b) Find the total cost if the marginal cost is MC = 3e0.5Q and fixed costs are 10.

2. Find the short-run production functions corresponding to each of the following marginal
product of labor functions:
6
a) 1000 – 3L2 b) − 0.01
√𝐿

3. Find:

5 2
a) ∫ 𝑥(𝑥 5 − 2)d𝑥 b) ∫ 𝑥10 − 3√𝑥 + 𝑒 −𝑥 d𝑥 c) ∫ 𝑥 3 − 𝑥 6 + 𝑥 − 4𝑒 −4𝑥 d𝑥

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6.2. Definite integration:

𝑏
Definite integral: tích phân ∫𝑎 𝑓(𝑥)d𝑥
Limits of integration: a, b
Applicability of definite integration:
 Consumer’s surplus
 Producer’s surplus
 Investment flow
 Discounting

𝑄0
CS = ∫ 𝑓(𝑄𝐷 )d𝑄 − 𝑄0 𝑃0
0

𝑄0
PS = 𝑄0 𝑃0 − ∫ 𝑔(𝑄𝑆 )d𝑄
0

Consumer’s surplus Producer’s surplus

Net investment (I): Rate of change Discounting:
of capital stock K 𝑛
𝑡2 𝑃 = ∫ 𝑆e−𝑟𝑡/100 d𝑡
d𝐾
𝐼= ∫ 𝐼(𝑡)d𝑡 0
d𝑡 𝑡1

PRACTICE
4. Find the consumer’s surplus at P = 5 for the following demand functions:
10
(a) P = 25 – 2Q (b) P =
√𝑄

5. Find the producer’s surplus at Q = 9 for the following supply functions:

(a) P = 12 + 2Q (b) P = 20√𝑄 + 15

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6. If the net investment function is given by

I(t) = 100e0.3t
calculate
(a) the capital formation from the end of the second year to the end of the fifth year
(b) the number of years required before the capital stock exceeds $100 000.

Chapter 7: Matrices
7.1. Basic matrix operations:
Entry Column
Row
7 3 4
A= [ ]
1 5 6

Matrix order 2x3

𝑎12 : row 1, column 2 of A  𝑎12 = 3

֍ Transposition: AT = B (transfer column with rows)

5
Row vector: only 1 row C = [5 2 1 −4] D = [4]
2
Column vector: only 1 column

7 3 4 6 2 1
A= [ ] B= [ ]
1 5 6 0 4 4

֍ Addition and subtraction: if C = A + B or C = B + A then

7+6 3+2 4+1 13 5 5
C= [ ]=[ ]
1+0 5+4 6+4 1 9 10
Note: to add or subtract, 2 matrices must have the same order (m x n)

Zero matrix: all entries are 0

֍ Scalar multiplication: tích vô hướng

7𝑥12 3𝑥12 4𝑥12 84 36 48

Ex: To find 12A, we multiply each entry with 12  12A = [ ]=[ ]
1𝑥12 5𝑥12 6𝑥12 12 60 72
 𝑘(𝐀 + 𝐁) = 𝑘𝐀 + 𝑘𝐁
 𝑘(𝑙𝐀) = (𝑘𝑙)𝐀
֍ Matrix multiplication: just have C = AB when A: m x s and B: s x n; then C: m x n

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Note: Row x Column, Multiply  Plus

AB ≠ BA

PRACTICE

1. A firm manufactures three products, P1, P2 and P3, which it sells to two
customers, C1 and C2. The number of items of each product that are sold to these
customers is given by

The firm charges both customers same price for each product according to P1 P2 P3 B = [100 500 200]T

To make each item of type P1, P2 and P3, the firm uses four raw materials, R1, R2,
R3 and R4. The number of tonnes required per item is given by

The cost per tonnes of raw materials is

In addition, let E = [1 1]

Find the following matrix products and give an interpretation of each one.
(a) AB (b) AC (c) CD (d) ACD (e) EAB (f) EACD (g) EAB – EACD

2. A firm orders 12, 30 and 25 items of goods G1, G2 and G3. The cost of each item of G1,
G2 and G3 is $8, $30 and $15 respectively.
a) Write down suitable price and quantity vectors, and use matrix multiplication to work
out the total cost of the order.
b) Write down the new price vector when the cost of G1 rises by 20%, the cost of G2
falls by 10% and the cost of G3 is unaltered. Use matrix multiplication to work out
the new cost of the order and hence find the overall percentage change in total cost.

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3. Two matrices A and B are given by

and if A = B find the values of a, b, c and d. (*)

4. If find the matrix X which satisfies the matrix equation: 2A + XT = 3B

7.2. Matrix inversion: (just apply for square matrix)

7.2.1. 2x2 Matrix:

1 0
Identity: I where I = [ ])
0 1
 AI = A and IA = A or A-1A = I and AA-1 = I

𝑎 𝑏 1 𝑑 −𝑏
For A = [ ]  A-1 = 𝑎𝑑−𝑏𝑐 [ ]
𝑐 𝑑 −𝑐 𝑎

𝑎 𝑏  If det (A) = 0  singular

det (A) or |A| or | | = ad – bc
Determinant: 𝑐 𝑑  If det (A) ≠ 0  non - singular

To find x, y through simultaneous equations: 𝑎𝑥 + 𝑏𝑦 = 𝑒

𝑐𝑥 + 𝑑𝑦 = 𝑓
𝑎 𝑏 𝑥 𝑒
can be written as Ax = b where 𝐀 = [ ] x = [𝑦 ] b = [𝑓 ]
𝑐 𝑑
then we can solve x = A-1b

7.2.1. 3x3 Matrix:

1 0 0
Identity: I = [0 1 0]
0 0 1

+ − + To find cofactor: cross the vertical and horizontal line through that entry
[− + −]
+ − + The cofactor is the determinant of the 2 x 2 matrix not lined and the sign

3 6 2
Ex: A = [1 5 3], find A23, A31?
4 3 2

3 6 6 2
A23 = − | | = − (3x3 – 4x6) = 15 A31 = + | | = + (6x3 – 2x5) = 8
4 3 5 3

To find determinant of a 3 x 3 matrix: multiply entries in any one row or column by their
corresponding cofactors and adding together.

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16 MATH FOR BUSINESS

Ex: With previous A, find det (A)

5 3
A11 = + | | = + (5x2 – 3x3) = 1
3 2

6 2
A21 = − | | = − (6x2 – 3x2) = −6
3 2
Adjugate matrix
det (A) = a11A11 + a21A21 + a31A31 = 3 x 1 + 1 x (-6) + 4 x 15 = 57 Transposition of cofactors

𝑎11 𝑎12 𝑎13 𝐴11 𝐴21 𝐴31

1
For A = [𝑎21 𝑎22 𝑎23 ]  A-1 = |𝐀| [𝐴12 𝐴22 𝐴32 ]
𝑎31 𝑎32 𝑎33 𝐴13 𝐴23 𝐴33

To find inversion of a matrix 3x3:

1) Find cofactors of 3 entries 4) Transpose the cofactors to have

2) Find det A  ≠ 0 or = 0 adjugate matrix
3) Find 6 other cofactors 5) Finish the scalar multiplication

PRACTICE
5.

6.

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 MATH FOR BUSINESS 17

7.

8. Use matrices to solve the following pairs of simultaneous equations:

(a) 3x + 4y = -1 (b) x + 3y = 8
5x - y = 6 4x - y = 6

5 −2 7
9. Find the cofactor of the matrix [6 1 −9]
4 −3 8

10. Find (where possible) the inverse of the matrix

Are these matrices singular or non-singular?

7.2. Cramer’s rule: (apply for any n x n matrix)

det(𝐀𝒊 ) where Ai is the n x n matrix found by replacing the ith column of A by the
𝑥𝑖 = det(𝐀)
right-hand-side vector b.

Ex: Solve the system of equations

Using Cramer’s rule to find x1

A is the coefficient matrix:

A1 is constructed by replacing the first column of A by the right-hand-side vector

which gives A1 =

9 2 3
1 6 −9 6 −9 1
det (A1) = |−9 1 6| = 9| | – 2| | + 3| | = 9(-37) – 2(–123) + 3 (–76) = –315
7 5 13 5 13 7
13 7 5

det (A) = … = -63

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18 MATH FOR BUSINESS

det(𝐀𝟏 ) −315
𝑥1 = = =5
det(𝐀) −63

PRACTICE
11.

Chapter 8: Linear Programming

8.1. Graphical solution of linear programming problems:

Step 1: Sketch the feasible region

Step 2: Identify the corners of the feasible region and find their coordinates.

Step 3: Evaluate the objective function at the corners and choose the one which has the maximum
or minimum value.

Ex: Solve the linear programming problem

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 MATH FOR BUSINESS 19

Maximize 5x +3y

Subject to 2x + 4y ≤ 8

x≥0

y≥0

Step 1: The non-negativity constraints x ≥ 0 and y ≥ 0 indicate that the region is bounded by the
coordinate axes in the positive quadrant.
The line 2x + 4y = 8 passes through (0, 2) and (4, 0). Also, at the test point (0, 0) the inequality 2x
+ 4y ≤ 8 is true ( 0 ≤ 8). The feasible region is sketch below:

Step 2: The feasible region has 3 corners, (0, 0), (0, 2) and (4, 0).

Step 3:

Corner Objective function The maximum value of the objective function

is 20, which occurs when x = 4, 4, y = 0
(0,0) 5(0) + 3(0) = 0

(0,2) 5(0) + 3(2) = 6

(4,0) 5(4) + 3(0) = 20

Note:

+ If, in step 3, the maximum (or minimum) occurs at 2 corners then the problem has infinitely
many solutions. Any point on the line segment joining these corners, including the two corners
themselves, is also a solution

+ If, there are many corners and 1 corner is not with integer x, y  ignore that value

+ If, there is only 1 corner not with integer x, y  find 4 points near that value to find min, max

+ In unbounded feasible region, we just can find minimum value of the objective function

8.2. Application of linear programming:

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20 MATH FOR BUSINESS

Decision variable: the unknowns in a linear programming problem which can be

controlled. (Ex: x = number of bowls, y = number of plates)
Integer programming: a linear programming problem in which the search for solution is
restricted to points in the feasible region with wholenumber coordinates.
Shadow price: the change in the optimal value of the objective function due to a one unit
increase in one of the available resources (nearly like marginal)

PRACTICE
1. A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1
hour to make, whereas each pair of trousers takes 40 minutes. The materials for a jacket cost $32
and those for a pair of trousers cost $40. The company can devote only 34 hours per week to the
production of jackets and trousers, and the firm’s total weekly cost for materials must not exceed
$1200. The company sells the jackets at a profit of $12 each and the trousers at a profi t of $14 per
pair. Market research indicates that the firm can sell all of the jacketsthat are produced, but that it
can sell at most half as many pairs of trousers as jackets.
(a) How many jackets and trousers should the firm produce each week to maximise profit?
(b) Due to the changes in demand, the company has to change its profit margin on a pair of
trousers. Assuming that the profi t margin on a jacket remains at $12 and the manufacturing
constraints are unchanged, fi nd the minimum and maximum profit margins on a pair of trousers
which the company can allow before it should change its strategy for optimum output.

2. A food producer uses two processing plants, P1 and P2, that operate 7 days a week. After
processing, beef is graded into high-, medium- and low-quality foodstuffs. High-quality beef is
sold to butchers, medium-quality beef is used in supermarket ready-meals and the low-quality
beef is used in dog food. The producer has contracted to provide 120 kg of high-, 80 kg of
medium- and 240 kg of low-quality beef each week. It costs $4000 per day to run plant P1 and
$3200 per day to run plant P2. Each day P1 processes 60 kg of high-quality beef, 20 kg of
medium-quality beef and 40 kg of low-quality beef. The corresponding quantities for P2 are 20
kg, 20 kg and 120 kg, respectively. How many days each week should the plants be operated to
fulfill the beef contract most economically?

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Cách tìm det = máy tính

MODE 6  1: nhập matrix cần tính

AC  Shift 4  7   Shift 4  3 : tìm được det của A, tương tự nếu nhiều matrix thì nhập B,
C bằng cách Shift 4  2  2, 30

Cách tìm AT cofactor

AT cofactor sẽ tính = A-1 x det (A)

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֍ GOOD LUCK TO YOU ֍

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November 30, 2020