Marginal Values

 Marginal Revenue
dR
R 
dx
 Marginal Cost
dC
C 
dx
 Marginal Profit

dP
P   R  C 
dx
 Suppose that C(x) dollars is the total cost of producing x toys

C ( x)  110  4 x  0.02 x 2
a. The marginal Cost function

b. Marginal cost for x=50

c. Actual cost in producing the 51st unit

2 xy  x  2
x 2  y 3  2xy 2
 Suppose in a certain market that x thousands of
creates are supplied daily when p dollars is the
price per crate and the supply equation is

px  20 p  3 x  105  0

If the daily supply is decreasing at the rate of 250

creates per day, what rate is the price changing
when the daily rate is 5000 crates?
Optimization
 When discussing the geometic significance of the slope of a straight
line, the following relationships of slope and behavior of the line
 Whem m>0, the line is rising
 When m<0, the line is falling
 When m=0, the line is horizontal

 f‘ represents the slope of the tangent line, similar conclusions can be

made
 f‘ is positive, that is f’>0, the curve is rising or the function is increasing in the vicinity of
[a, f(a)]
 f‘ is negative, that is f’<0, the curve is falling or the function is decreasing in the
vicinity of [a, f(a)]
 f‘ is zero, that is f’=0, the tangent line is horizontal in the vicinity of [a, f(a)]
1st derivative test

 Find the 1st derivative of the function

 Determine the critical values
 Considering one critical value at a time, test it by
substituting a value less and greater than the
critical value
 If the value changes from positive to negative, the
function is at its maximum
 If it changes from negative to positive, the function is
at its minimum
 If zero, try the 2nd derivative test
2nd derivative test
 Find the 1st derivative test
 Find the critical values
 Find the 2nd derivative
 Substitute each critical values in the 2nd
derivative
 If the sign is positive, the function is at its minimum
 If the sign is negative, the function is at its maximum
 If zero or DNE, an inflection point or neither min or max
y  x 3  12 x  4
y  3x 5  20 x 3