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Functions and Their Applications: Chapte
Functions and Their Applications: Chapte
Chapter Outline
Learning Objectives
INTRODUCTION
For the use of mathematical models in decision-making the first requirement is to identify relevant factors
(also called variables) involved in the problem and then defining their interrelationships. Such relationships
are expressed in the form of an equation or set of equations/inequalities. These equations or inequalities
with or without an objective function help the decision-maker in better understanding of the problem and
arriving at an optimal decision. For example, total inventory cost is expressed in terms of total purchase
cost, ordering cost, holding cost and shortage cost. The differential calculus method is used to calculate
economic order quantity to achieve minimum total inventory cost.
The aim of this chapter is to explain some fundamental concepts about functions, their classification
and application in the context of business and economic problems.
Functions and Their Applications 55
have a specific relationship among the selected variables. For example, for the purpose of finding total
inventory incremental cost (TIC), the specific relationship between T and Q is stated as :
D Q*
TIC = Cp + C ...(i)
Q* 2 h
where Q* = 2 DCp / C h is the optimal order size and D, Cp and Ch are total annual demand, procurement
cost per order and holding cost per unit per time period respectively. It may be noted here that equation
(i) indicates rule of correspondence between the dependent variable TIC and independent variable (Q). That
is, as soon as different values to Q are assigned in the set of real numbers, the corresponding unique value
of TIC is determined by the given relationship and that relationship is called a real function. The various
values of Q form a set called the domain and the corresponding values of TIC form another set called the
range of the function. It can also be expressed as f : Q → TIC.
Based on the above discussion, we can now define the function as a correspondence among variables
of two non-empty sets A and B as follows :
Definition : If A and B are two non-empty sets and there exists a rule of correspondence by which each
element x of set A is related to unique element y of set B, then such correspondence is called the function
from A to B. It is represented as :
f : A → B, such that y ∈ B and x ∈ A.
where y = f (x)
Remarks
1. Value of function : The element y in B that is associated to x by f is denoted by f (x) and is called
the value of f at x.
2. Domain of f : The set A is called the domain of function f.
3. Co-domain of f : The set B is called the co-domain of function f.
4. Range of f : The set { f (x) : x ∈ A, f (x) ∈ B} of all values taken by f is called the range of f. It is
obviously a subset of B.
Intervals
If a and b are two real numbers such that a > b , then a set of real numbers can be enumerated between
a and b.
The set of all real numbers between a and b without these end points is called the open interval and
is written as :
(a, b) = {x ∈ R : a < x < b}
However, if end points a and b are included in the set, then it is called a closed interval and is written as :
[a , b] = {x ∈ R : a ≤ x ≤ b]
There are also intervals which are closed at only end point. For example,
(a, b] = {x ∈ R : a < x ≤ b}
and [a, b) = {x ∈ R : a ≤ x < b}
Every mathematical relationship may not define the function. For example, the equation y = x does not
define a function, since we find that there exist twovalues ± 2 of y corresponding to the given value x = 4.
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The dimension of a function is determined by the number of independent variables. For example,
(a) y = f (x) is a single-variable (or one-dimensional) function.
(b) y = f (x, z) is a two-variable (or two-dimensional) function.
(c) y = f (x, z, r) is a three-variable (or three-dimensional) function.
Example 1 : Let p + 3q/2 = 27 be an equation involving two variables p (price) and q (quantity). Indicate
the meaningful domain and range of this function when (a) the price (b) the quality are considered
independent variables.
Solution : (a) When price ( p) is taken as independent variable, we have
2
q = 18 – p
3
Domain : 0 ≤ p ≤ 27
Range : 0 ≤ q ≤ 18
(b) When quantity (q) is taken as independent variable, we have
3
p = 27 – q
2
Domain : 0 ≤ q ≤ 18
Range : 0 ≤ p ≤ 27
Example 2 : Find the domain and range of the following functions :
(a) y = – | x | (b) y = 3 − 2x .
Solution : (a) Domain = set of values of x for which y is meaningful
= set of real numbers (R) because for all x ∈ R, y has a unique value, i.e.,
| x | ≥ 0 for all x ∈ R.
Thus, – x ≤ 0 or y ≤ 0, for all x ∈ R
Range : {y : y = – x and x ∈ R} = {y : y ≤ 0}
(b) The value of y will be real for those values of x for which the expression under the radical sign is
non-negative (≥ 0). Thus, the domain of y is given by 3 – 2x ≥ 0 or 3 ≥ 2x or x ≤ 3/2, i.e., the set
of all real numbers in the interval (∞, 3/2)]. For range, we have y = 3 − 2 x or y2 = 3 – 2x which gives
2
x = (3 – y )/2.
Since x ≤ 3/2, therefore, (3 – y2)/2 ≤ (3/2) or 3/2 – y2/2 ≤ 3/2 or – y2/2 ≤ 0 or y2/2 ≥ 0 which implies
either y ≤ 0 or y ≥ 0. Also y is the positive square root, therefore rejecting y ≤ 0, we have y ≥ 0. Thus,
the range of y is the set of all non-negative real numbers.
Example 3 : Find the domain and range of the following:
|x|
(a) (b) [x] (c) [x] – x (d) | x – 1 |
x
|x|
Solution. (a) For f (x) = , where f is defined for all x except at x = 0. Therefore, domain ( f ) = R – {0}
x
when x > 0, f (x) = 1 and when x < 0, f (x) = – 1. Thus, range ( f ) = {1, – 1}.
Functions and Their Applications 59
R|
x, x ≥0
S|
| x | = − x, x < 0
T 0, x =0
The sin and cosec are said to be co-functions, as are the cos and sec and tan and cot.
The trigonometric functions are defined similarly for negative angles. An angle θ may be measured in
degrees or radians. However, in calculus and its applications to business and economics radian measure
is usually more convenient.
The trigonometric functions are very useful in the study of business cycles, seasonal or other cyclic
variations are described by sine or cosine functions.
2. Exponential Functions : A function having a constant base and a variable exponent is called an
exponent function, such as
(i) y = ax , a ≠ 1, a > 0 (ii) y = k ax , a ≠ 1, a > 0
bx
(iii) y = k a , a ≠ 1, a > 0 (iv) y = k ex
where a, b, e, and k are constants
and x is an exponent.
In calculus and its applications to
business and economics, such func-
tions are useful for describing sharp
increase and decrease in the value of
dependent variable. For example, the
graph of exponential function y = k ax
indicates rise to the right in the value
of y for a > 1 and k > 0 whereas indi-
cates fall to the left for a < 1 and k > 0,
as shown in Fig. 2.6 (a) and (b). Fig. 2.6 : Exponential Function
The rules governing the exponents
are as under:
(i) a x1 ⋅ a x2 = a x1 + x2 (ii) a x1 / a x2 = a x1 − x2 (iii) ( a x1 ) x2 = a x1 x2
(iv) ( a ⋅ b ) x1 = a x1 ⋅ b x1 b g
(v) a / b x1 = a x1 ⋅ b − x1 (vi) ao = 1.
3. Logarithmic Functions : A logarithmic function is expressed
as : y = logax where a > 0 , a ≠ 1 is the base. It is read as
“y is the log to the base a of x”. This relationship may also
be expressed by the equation x = a y. It is an exponential
function. Thus, logarithmic and exponential functions are
inverse functions, i.e., if x is an exponential function of y,
then y is the logarithmic function of x.
Although the base of logarithm can be any positive number
other than 1, but most widely used bases are either 10 (common
or Briggsian logarithms) or e = 2.718 (natural or Naperian loga-
rithms).
By convention, log x denotes the common logarithm of x
and ln x denotes natural logarithm of x. If any other base is
Fig. 2.7 : Logarithmic Function
meant, it is specified.
Some important properties of the logarithms are as follows. If x and y are positive real numbers, then
(i) log a (x y) = log a x + log a y (ii) log a (x/y) = log a x – log a y
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RS x , if x ≤ 0 R| 1 ; x > 0
(i) f (x) = x , at x = 0 (ii) f (x) =
T x , if 0 < x ≤ 2
2 (iii) f (x) = S| 0 ; x = 0
T − 1; x < 0
R| 2
| x in ( − ∞, 0) R| x , x > 0
(iv) f (x) = S x in ( 0, 1) (v) f (x) = S 0, x = 0 (vi) f (x) = x + x – 1 |
|| 1 in (1, ∞) |T − x , x < 0
Tx
Functions and Their Applications 63
R| 1 − x , 0 < x < 1
| 23 − x , 1 < x < 12 x
(vii) f (x) = S (viii) f (x) =
|| 21 2 1 |x|
|T 2 , x = 2
2. If f (x) = 1 – x2 + x4, then prove that f (– x) = f (x).
3. Examine whether the function below is even or odd
e x + e− x e x − e− x
(a) y = , (b) y =
2 2
4. If f (x) = log x, then proved that f (x y) = f (x) = f (y) and f (xn) = n f (x).
5. Find a quadratic function, y = ax2 + bx + c, that fits the data points (1, 4), (– 1, – 2) and (2, 13). Estimate
the value of y when x = 3.
6. Graph the function y = – x2 + 4x – 2 with the set of values – 5 ≤ x ≤ 5 as the domain.
7. On the same graph paper, draw the graphs of function : y = x2 , y = x2 + x (plot at least 10 points
for each graph).
− b + b2 − 4 a c − b − b2 − 4 a c
and
2a 2a
Remark : The number of roots of the given function is always equal to the highest power of the
independent variable.
Special Cases
The expression b2 – 4ac in the value of x is known as discriminant which determines the nature of the
roots of the quadratic equation as discussed below:
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(i) If b2 – 4 ac > 0, then the two roots are real and distinct.
(ii) If b2 – 4 ac = 0 , then the two roots are equal and are equal to – b/2a.
(iii) If b2 – 4 ac < 0, then the two roots are imaginary (not-real) because of the square root of negative
number.
The roots of a polynomial : y = (x – a) (x – b) (x – c) ... are a, b, c .....
Remark : From this discussion, it is clear that we need to find out the actual roots to determine their nature.
The value of (b2 – 4 ac) is sufficient to determine the nature of the roots.
− b + b2 − 4 a c − b − b2 − 4 a c
α = and β=
2a 2a
are the roots of this equation. Then the sum and product of these roots is given by
−b − Coefficient of x
Sum of roots = α + β = =
a Coefficient of x 2
c Constant term
Product of roots = α . β = =
a Coefficient of x 2
The above general equation can be written as
b c
x2 + x+ = 0 or x2 – (Sum of roots) x + (Product of roots) = 0.
a a
This is the formula to find an equation whose roots are given. Alternatively, an equation whose roots are
α and β is given by (x – α) (x – β) = 0.
1. Consider the general quadratic expressions ax2 + bx + c, a ≠ 0 and c > 0. Show that
(i) ax2 + bx + c ≥ 0 for all x if and only if its discriminant b2 – 4 a c ≤ 0.
(ii) of the two roots of the equation : ax2 + bx + c = 0, it is not possible that one is imaginary and
the other is real.
(iii) ax2 + bx + c can be written as (k x + d )2 for some k and d if b2 = 4 ac.
2. Consider the quadratic equation 2x2 – 8x + c = 0. For what value of c the equation has (i) real roots
(ii) equal roots, and (iii) imaginary roots ?
3. Determine the quadratic equation whose roots are :
(i) – 1, – 2 (ii) a/b, b/a (iii) – 3, – 2/3 (iv) α2, β2
4. Consider the general quadratic equation ax2 + bx + c = 0. If α and β are the roots of the equation,
then show that, α + β = – b/a and α · β = c/a.
(1 + n 2 + n 4 )
5. If a and b are the roots of the equation x2 – ( 1 + n2 ) x + = 0, then prove that
2
a2 + b2 = n2.
Functions and Their Applications 65
By definition, break-even analysis determines the optimum value of q for which profit P equals zero, i.e.:
Total revenue = Total cost
or p ⋅ q – (k + v.q) = 0
k Fixed cost
or q* (optimum) = =
p − ( v . q ) Selling price − Variable cost
Example 11 : A firm produces an item whose production cost function is C = 80 + 4x, where x is the number
of items produced. If entire stock is sold at the rate of Rs. 8 then determine the revenue function. Also
obtain the ‘break-even’ point.
Solution : The revenue function is given by R = 8x. Also given that, C = 80 + 4x. Therefore,
Profit, P = R – C = 8x – (80 + 4x) = 4x – 80
The break-even point occurs when R – C = 0 or R = C, i.e., 8x = 80 + 4x or x = 20 (units).
Example 12 : A company producing dry cells introduces production bonus for its employees which increases
the cost of production. The daily cost of production C (x) for x number of cells is Rs. (3.5x + 12,000).
(a) If each cell is sold for Rs. 6, determine the number of cells that should be produced to ensure no loss.
(b) If the selling price is increased by 50 praise, what would be the break-even point ?
(c) If at least 6000 cells can be sold daily, what price the company should charge per cell to guarantee
no loss ?
Solution : Let R (x) be the revenue due to the sales of x number of cells.
(a) Given that, cost of each cell is Rs. 6. Then R (x) = 6x. For no loss, we must have
R (x) = C (x) or 6x = 3.5 x + 12,000 or x = 12,000/2.5 = 4,800 cells.
(b) Increased selling price is, Rs. (6 + 0.50) = Rs. 6.5. Thus, R (x) = 6.5 x. Now for break-even point, we
must have
R (x) = C (x) or 6.5 x = 3.5 x + 12,000 or x = 12,000/3 = 4000 cells.
(c) Let p be the unit celling price. Then revenue from the sale of 6000 cells will be, R (p) = 6000 p. Thus,
for no loss, we must have
R ( p ) = C ( p ) or 6000 p = 3.5 × 6000 + 12,000 or p = 33,000/6000 = Rs. 5.5.
Example 13 : A hotel charges Rs. 80 a day for each room. However, special concession is available for each
room if more than 6 rooms are rented by a group, the rent of a room is decreased by Rs. 3 to a minimum
of Rs. 50. Each occupied room requires daily cleaning and other charges of Rs. 10. The hotel also incurs
a maintenance charge of Rs. 3 per room if it is not rented. The hotel has 50 rooms.
(a) Compute the rent per room that a group has to pay if 15 rooms are rented.
(b) Find the profit as a function of the number of rooms rented to a group in case only one group is staying
in the hotel at a time.
Solution : (a) Since the rent is reduced at the rate of Rs. 3 per room, the rent is reduced by Rs. (13 – 6) × 3
= Rs. 21. Thus, the group has to pay at the rate of Rs. 80 – 21 = Rs. 59 per room.
(b) Let P(x), R(x) and C(x) denote respectively the profit, revenue and cost functions. First, we compute
R(x).
R(x) = 80x, if 0 ≤ x ≤ 6.
Since the rent is reduced to a minimum of Rs. 50, we get
50 = 80 – 3(x – 6) ⇒ x = 16
∴ R(x) = [80 – 3(x – 6)] x, if 6 ≤ x ≤ 16
= x (98 – 3x), if 6 ≤ x ≤ 16
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