MA107: Quantitative Methods (Mathematics) 201415

Exercises 5: Partial derivatives

For all homeworks in this course please note that no marks will be given for answers only. Always
show the method used to obtain your answers.
Please write clearly. Dont just use formulae, but explain in a few words what you are doing.
Several of the exercises for this course also appear as exercises in the book Mathematics for Economics
and Finance, sometimes with partial solutions. No marks will be given for just copying solutions
from that book.
1. Find the first and second order partial derivatives of the following functions.
f (x, y) = x2 + 2xy + 3y 2 ;

g(x, y) = (x2 + y 2 )1/2 ;

h(x, y) = x y .

2. Suppose that R = R(q1 , q2 ), where q1 and q2 are themselves functions of k and l.

Write down the chain rule formulae for R/k and R/l. Evaluate R/k and R/l as functions
of k and l when
R(q1 , q2 ) = q1 q22 ,

q1 (k, l) = 3k + 4l

and

q2 (k, l) = 5k + 6l.

3. (a) Calculate dy/dx at the point (x, y) = (1, 1) when y is the function of x defined implicitly by
the equation x2 + 2xy + 3y 2 = 6.
(b) Using an extension of the method described in the notes and the book, find q/k and q/l at
the point where (k, l) = (1, 1) when q, k and l are related by the equation q 3 k + k 3 l + qk 2 l = 3.
4. Show that the Cobb-Douglas production function
q(k, l) = Ak l1

(A constant, 0 < < 1)

is homogeneous of degree 1.
q
, is positive and decreases as l increases [for fixed k].
l
Verify Eulers theorem and explain its significance in terms of the distribution of the total product
amongst capital and labour.
Show that the marginal product of labour,

Extra exercises
The following exercises are extra, and you are not expected to submit these with your homework.
They are meant to give you further questions to practice with. And, as some of them may be based
on old exam questions, they may give you an idea about what you can expect on the exam.
1. The quantity, y, is defined as a function of x through the equation
x2 y 3 6x3 y 2 + 2xy = 1.
Find a general expression for the derivative, y 0 (x), and calculate y 0 (1/2).
Hint: It may help to note that y 3 3y 2 + 4y 4 = (y 2)(y 2 y + 2).
2. Show that the production function F (K, L) = (K 1/4 + L1/4 )4 is homogeneous of degree 1.
Verify that K

F
F
+L
= F (K, L).
K
L