MATHEMATICS

Departament of Quantitative Economics

University of Oviedo

PROPOSED EXERCISES FOR THE STUDENT

PART I. LINEAR ALGEBRA
UNIT 1. REAL VECTOR SPACE

1.- Study if the following vectors are linearly independent or not.
a) 𝑢 = 1,0,2 , 𝑣 = −2,2,4 𝑎𝑛𝑑 𝑤 = 0,2, −3
b) 𝑢 = 2,1,2 , 𝑣 = 2 − ,2,0 𝑎𝑛𝑑 𝑤 = 4, −1,2
c) 𝑢 = 1,0,2 𝑎𝑛𝑑 𝑣 = −2,2,4

2.- Determine 𝑚 and 𝑛 such that vectors
𝑢 = 1,2, 𝑚 𝑣 = 𝑚, 1,2 𝑤 = 0,1, 𝑛
are linearly independent.

3.- Given the vectors 𝑢 = 2, −1,0 , 𝑣 = −3,1,1 𝑎𝑛𝑑 𝑤 = −2,0,2 .
a) Express, if possible, w as a linear combination of u and v .
b) Are the previously obtained scalars unique? Are they coordinates of w ?
4.- a) Find among the following vectors of IR 2 a basis in this vector space.
𝐴 = 2, −1 , −4, 2 , 4, −2 , 6, 3 , (0, 0)
c) Obtain 𝑘 such that the set of vectors 2,1,0 , −1,0,1 , 𝑘, 1,2 is a basis in IR 3

5.- Given the vectors in IR3, v1 = (1,0,1) v2 = (2,1, m) v3 = (3,1,1) v4 = (2,1,1) , m Î IR

a) Is there any value of m such that the system of vectors {v1 , v2 , v3 , v4 } is a set of
linearly independent vectors? Please, give reasons for your answer.
b) Is there any value of m such that the system {v1 , v2 , v3 } is linearly independent?
Please, give reasons for your answer.
c) For m = 0, and using the vectors of the system {v1 , v2 , v3 , v4 }, find a basis in IR 3 .

6.- Given the vector x Î IR 2 with coordinates ( 2, -3) with respect to the basis
B = {(1, 2 ) , ( 2,0 )}, obtain the coordinates of vector x with respect to the basis
B ' = {(1,1) , ( 3,1)} .
7.- In the vector space IR 3 , calculate the coordinates of vector v = ( 1,1,-1 ) with
respect to the basis B = {(1,0,2), (0,1,1), (-1,-1,0) }
8.- Given the vectors v1 = (a ,0,1) , v2 = ( 0, -1,1) , v3 = ( 0,1, a ) and v4 = (1,0,0 ) in IR 3
a) Could {v1 ,v2 ,v3 ,v4 } be a basis of IR3 ?
b) Calculate a such that {v1 ,v2 ,v3 } are a basis in IR3 . Please, give reasons for
your answers.
1
 PROPOSED EXERCISES FOR THE STUDENT
PART I. LINEAR ALGEBRA
UNIT 2. DIAGONALIZATION OF MATRICES

æ2 1ö
9.- Given a matrix B = ç ÷ . Study if the following vectors
è1 2ø
x = (1,1) , y = ( -1,1) , z = ( -1, 2) , are eigenvectors of B and if so, indicate to which

eigenvalue are they associated. If possible, diagonalize matrix B and then, obtain B3.

æ 2 -3 ö
10.- Given matrix C = ç ÷ study, from the definition of eigenvector, if
è -3 2 ø
( 2, 2) , ( 0, 0) and ( -1, -1) are eigenvectors associated to matrix C. If so, indicate which
are their associated eigenvalues.

11.- Given the following matrices, study if they are diagonalizable and, if so, obtain the
associated diagonal matrix.

æ 3 -1 0 ö æ 3 0 0ö æ2 2 1ö
ç ÷ ç ÷ C = çç 1 3 1 ÷÷
A = ç -1 2 -1÷ B = ç 3 1 0÷
ç 0 -1 3 ÷ ç -1 0 1 ÷ ç1 2 2÷
è ø è ø è ø

12.- Given the matrix
æ 2 a 1ö
ç ÷
A = ç 0 - 1 3÷
ç 0 2 0÷
è ø
a) Calculate the values of a such that l = -3 is an eigenvalue of A.
b) Calculate the values of a such that (0,1,1) is an eigenvector of A.


13.- Given the matrix
æa b 3ö
ç ÷
A = ç 0 1 a ÷ , a, b Î IR
ç 0 1 2÷
è ø

i) Calculate the values of a and b for which l = 3 is an eigenvalue of A.
ii) Calculate the values of a and b for which (0,1,1) is an eigenvector of A.
iii) For a = 0, is A a diagonalizable matrix? If so, find a diagonal matrix associated
to A.

2
 PROPOSED EXERCISES FOR THE STUDENT
PART I. LINEAR ALGEBRA
UNIT 3. QUADRATIC FORMS

15.- Write down the analytical expression of the quadratic for with associated matrix:
æ3 1 0ö
a) A = ç 1 -2 3 ÷
ç ÷
ç0 3 4÷
è ø
æ 3 2 0ö
b) B = ç 2 2 2 ÷
ç ÷
ç0 2 1÷
è ø
16.- Classify the following quadratic forms:

a) q ( x1 , x2 ) = - x12 + 2 x1 x2
æ 3 2 0öæ x ö
b) q ( x, y, z ) = ( x y z ) ç 2 2 2 ÷ ç y ÷
ç ÷ç ÷
ç0 2 1÷ç z ÷
è øè ø
c) q ( x, y, z ) = 3x + 3 y + 5z - 4 xy
2 2 2

d) q ( dx, dy, dz ) = -dx2 - 3dy 2 - 3dz 2 + 4dydz

e) q ( x, y, z ) = 3x 2 + y 2 + 3z 2 + 2 xy - 2 6 xz
f) q ( x, y, z ) = 2 x 2 - y 2 + 5z 2 + 2 xy
g) q ( x, y, z ) = - x 2 - 3 y 2 - z 2 + 2 xy + 2 yz
h) q ( x, y, z ) = -2 x 2 - 3 y 2 - 3z 2 + 4 xy + 4 xz - 2 yz
æ 0 -2 öæ h ö
i) q ( h, k ) = ( h k ) ç ÷ç ÷
è -2 3 øè k ø
æ1 0 0ö æ x ö
j) q ( x, y, z ) = ( x y z ) ç 0 -4 0 ÷ ç y ÷
ç ÷ç ÷
ç 0 0 3÷ ç z ÷
è øè ø
17.- a) Find the sign of the quadratic form q ( x, y, z ) = x 2 - 3 y 2 - 2 z 2 + 2 xy subject to
ì3x + y = 0
í
î x - y = 0
b) Find the sign of the quadratic form q ( h1 , h2 , h3 ) = 2h12 + h22 - 4h1h2 + 2h2 h3 subject to
h1 - h2 + h3 = 0 .
c) Find the sign of the quadratic form q ( x, y, z ) = - x 2 + 2 xy - 5 y 2 + 4 xz - 6 z 2 subject to
ì x - 2z = 0
í
î2 y + z = 0

3
d) Find the sign of the quadratic form q ( x, y, z ) = x 2 + 2 xy - 2 xz + 4 y 2 + 4 yz + 5z 2
ìx - y + z = 0
subject to í
î y - 2z = 0
e) Find the sign of the quadratic form q ( dx, dy, dz ) = dx 2 - 2dxdy - 2dydz - dz 2 subject
to dx - dy = 0 .

4

PROPOSED EXERCISES FOR THE STUDENT
PART II. DIFFERENTIAL CALCULUS
UNIT 4. FUNCIONS OF SEVERAL VARIABLES


1.- Given 𝑓 𝑥, 𝑦 = 3𝑥 − 5𝑦. Calculate
𝑓 0,1 , 𝑓 2, −1 , 𝑓 𝑎, 𝑎 , 𝑓 𝑎 + ℎ, 𝑏 − 𝑓 𝑎, 𝑏

2.- Given 𝑓 𝑥, 𝑦 = 2𝑥 = − 3𝑦 = . Calculate

𝑓 −1,2 , 𝑓 2𝑎, 2𝑎 , 𝑓 𝑎, 𝑏 + 𝑘 − 𝑓 𝑎, 𝑏

3.- Obtain the domain of the following functions
a) 𝑓 𝑥, 𝑦 = 3𝑥𝑦 = − 45𝑥 > − 3𝑦 2x y

g) f ( x, y ) = e
4 x 2+ y2

b) 𝑓 𝑥, 𝑦 = 1 − 𝑥𝑦

c) 𝑓 𝑥, 𝑦 = ln(2 − (𝑥 = + 𝑦 = )) x
h) f ( x, y ) = s e n
d) 𝑓 𝑥, 𝑦 =
A
x + y2 2

BCDEA
æ x ö
i) f ( x, y ) = ln ç 2 2 ÷
e) 𝑓 𝑥, 𝑦 = 𝑥 = + 𝑦 = + 𝑥 = + 𝑦 = − 1 è -x - y ø
x
f) f ( x ) =
x -4 2

4.- Draw the level sets of the following functions

a) y = x x
1 2

b) z = x 2 + y 2
c) z = 2 x + y

d) z = ( x - 1)2 + ( y + 1)2

5.- Given the function z = x 2 - y 2 , study if points (2,-2) and (3,2) belong to the same level set.

6.- Study the continuity of the following functions:
y2 - x2
a) f ( x, y ) = d) f ( x, y ) = ln ( 2 x2 - 3 y )
x- y 2

yx - 3
b) f ( x, y ) = e) z = ( x - 1)2 + ( y + 1)2 -3𝑥 F − 4𝑦 > − 12
x + y -4
2 2

y+4
c) f ( x, y ) =
x -3

5
 UNIT 5. DERIVABILITY AND DIFFERENTIABILITY OF FUNCTIONS

1.- Find the gradient vector of the following functions:

a) f ( x, y) = 3x2 y + 3 x + y b)
c) f ( x , y ) = x a + b y
2
d) f ( x , y , z ) = e xy + 3z 2 y
1
e) f ( x, y) = ln( x + y ) + x y f) f ( p1 , p2 ) =
... ln( p2 )
p1


2.- Find the Hessian matrix of the following functions:
xy
a) f ( x , y , z ) = ln( 2 x - y + z ) b) f ( x , y ) = e
1 1
1
c) x = f ( p1 , p2 ) ln( p2 ) d) Q = f ( K , L) = 10 KL - K 2 - L2
p1


3.- Given the function:
x2 - 1
f ( x, y ) =
( x - 1) 2 + ( y - 1) 2
a) Is it continuous in its entire domain?
b) Do the partial derivatives exist at point (1,1)? And at point (0,0)?

6
 2
4.- The function X = f ( P1 , P2 , R ) = 10 - P1 - P1 + P2 + 0.1 R represents the demanded
quantity of a good, being P1 the price of the good, P2 the price of another related good
and R the available income for the consumer.

a) Study which is the effect on the demanded quantity of small changes in the
price of the good, remaining constant all the other variables (ceteris paribus).
b) Obtain the partial derivative of the demand with respect to the price of the
related good (P2). Is this good complementary or substitutive of the first one?
c) If the independent variables take the values P1=1, P2=3 and R=100 and a small
decrease happens on the income, which would be the approximate variation on the
demand?

1 1
5.- Let Q = f ( K , L ) = 20 K 2
L 3 be a production function where K and L represent,
respectively, the number of units of capital and labour used in the production process.
Is the marginal productivity of the capital increasing or decreasing with respect to the
variable K? And with respect to L?

6.- Let us consider the function f ( x, y ) from which we know that:

§ It is continuous at all point in the set {( x, y ) Î IR / x ¹ y} ! {(0, 0)}

2

Its partial derivatives exist at all point in the set {( x, y ) Î IR / x ¹ y} ! {(0,0)}

2
§
§ Its partial derivatives are continuous functions at all point in the set
{( x, y ) Î IR 2
/ x ¹ y}
Taking into account the above information, study if this function is differentiable
at points (1,1), (0,0), (4,1) and (4,4).

xy
7.- Given the function f ( x. y ) =
+ ln ( 2 x - y )
ex
a) Obtain the domain of function f ( x, y )
b) Study if the function is differentiable at (1, 4 ) and at (1,1)

7
8.- Given the following functions:

a) f ( x, y) = xy 2 sin ( 2 x ) b) g ( x, y) = ln( x - 2) + x 2 y
y 2 - x2
c) f ( x, y) = d) f ( x, y ) = ln( x - 1) + sin( xy)
x - y2
a) Obtain their domain
b) Study their continuity and differentiability in their domain.

9.- A Company produces two models of furniture: TACO and TECA. Its benefits depend
on the sales volume of each of them x1 and x2 expressed in monetary units (m.u.) in
the following way:


a) Knowing that the actual volume of sales of the products are 5 and 3 (m.u.)
respectively, what is more profitable for the Company, an increase in the sales of unit
TACO or an increase in sales of model TECA?
b) It the sales of model TACO increase by 0.1 m.u. and the sales of model TECA
decrease by 0.2 m.u. determine approximately the variation on the company’s benefit
reasoning the result.

10- Let A and B be two companies whose profits depend on advertising spending ( x )
and on the price of the good ( y ). If VA denotes sales of company A and VB sales of
Company B described through the following functions:
æ x2 y ö
VB ( x, y ) = 2 x
1
VA ( x, y ) = e2 x + ln ( xy ) - y 2 + çç ÷÷ ...
2

è 2 ø
a) At what rate would vary the sales of company B if advertising spending vary?
b) For which company would be more profitable an increase on advertising spending
if x =2 and y =1?
c) Obtain the differential of VA at point ( x, y ) = ( 2,1 ) giving a meaning to the
... .. ... ...

result.
d) If the spending on advertising of company A decreases by 0.1 units, how much
should vary the price of the good such that sales remain constant?
11- Given f ( x, y ) a function from which we know that

(
Ñf ( x, y ) = 5ln x + y 2 , x ) " ( x, y ) Î IR 2 . Obtain the differential at (1,1) and from it
obtain the variation of the function when me change from point (1,1) to point (1.01,
0.99).
12- Given the function f ( x, y, z ) = xy 2 + sin( xz ) use the differential to obtain,
approximately, the value of f (1.01, 0.99, 0.1) .

8

13.- In a paper by the economists P. Samuelson and S. Swamy, the authors study the
1/2
æ 3 1 ö
behaviour of function f (a ) = ç1 + a + a 2 ÷ . Find the linear approximation of f (a )
è 2 2 ø
at a neighbourhood of point a = 0 . Based on this solution, obtain the approximate
value of f (0.001) .


14.- Obtain Taylor’s polynomial for the function: f ( x, y) = x ln (1 + y ) , at a
neighbourhood of point (2,0). Calculate the approximate value of 1.89 ln(1.01).


15.- Given the function f ( x, y) = x y , obtain Taylor’s polynomial at point (1,0) and
calculate the approximate value of (1.2)0.1

9
 16.- Study if it is possible to obtain without calculator the approximate value of
A,H=
a) 1.01e0.02
b) 𝑙𝑛
A,HA

using a second order polynomial. If so, formulate the problem.

17.- Let us suppose that the total production of a country, Q, depends on the
quantities used of capital K and labour through the following expression:
(
Q( K , L) = ln 4K 2 L(1/2) . )
The marginal productivities and the hessian of the function are
¶Q 1 ¶Q 11
PMg K = ( K , L) = 2 PMg L = ( K , L) =
¶K K ¶L 2L
æ 1 ö
ç -2 K 2 0 ÷
HQ( K , L) = ç ÷
ç 0 1 1÷
ç - 2÷
è 2L ø
Obtain Taylor’s polynomial of second order using the above information at point (20,
15). Use it to obtain the approximate value of the production if K=20.01 and L=14.8.
Compare this result with the obtained result when a first order polynomial is used.


18.- Obtain dz/dt at t=1, if z= tg x2 and x= t2+ 2t.

19.- Obtain dy/ dt, if y= e2x, x= 2u2 and u = 3 t 2 + 3t .

20.- Given z= x sin y, where x= 2u+ v3 and y= u v. Find dz.

3 y
21.- Obtain the differential of z= uv, where u= x ,v= 4 ln y, at point x= 2, y= 1. Using
the differential obtain:
§ The increment in the function z when the independent variables take values x=2.02,
y=1.04
§ The new value of function z when the independent variables take values x=2.02, y=1.04

10
 u
x = ( u v ) + u ln v e y =
2
22.- If z = e xy + y 2 sen ( x 2 ) + y , where +v
v
¶z
a) Obtain (0,1)
¶u
b) At point (u, v) = (0,1) , obtain the differential of the compound function.
c) Given an increment on u of 0.1 units, determine the variation on v such that the
function remains constant.

23.- The benefits of a company depend on the produced quantities of two goods A and
B base don the following relation:
B ( x A , xB ) = 5x A xB2 + cos ( x A − 4) .

If the company produces 4 units of good A and 1 unit of good B:

a) For which good is more interesting to increase the production?
b) Calculate the approximate variation on benefits if the production of good A is
increased by 0.01 units and the production of good B is decreased by 0.002 units.
c) A detailed study of the situation of the company allows us to stablish that the
production of both goods depend on the use of factors capital (K) and labor (L) in the
following way:
x A = f (K, L) = K L and xB = f (K, L) = ln(K −1) + L
2
Which would be the approximate variation on the benefits of the company if, from an
initial situation in which (K,L)=(2,2), factor capital is slightly increased?


u
24.- If z = e xy + y 2 sin( x 2 ) + y , where x = (uv)2 + u ln v and y = + v .
v
¶z
a) Obtain ( 0,1)
¶u
b) At point (u,v)=(0,1), obtain the differential of the compound function.
c) Given an increment of u of 0.1, determine required the variation in v such that the
function remains constant.


25.- Let us suppose that the cost of a company depends on the produced quantities of
x1 , x2
two goods in the following way:
x
C (x1 , x2 ) = x1 ⋅ x22 +e 1
The produced quantities depend on the production factors capital (K) and labor (L)
x1 = (KL)+ KL2
1
x2 = 4K L
2

When K=4 and L=5, which would be the variation on the cost if the used amount of
capital is increased by 0.3 units and the used amount of labor is increased by 1 unit?

11
26.- A company produces two goods, x and y. Currently, the company is producing 4
units of good x and 6 units of good y obtaining a net benefit of 40 m.u. A study
conducted by a prestigious firm has allow us to know the following relation:
" 1 1 %
( )
∇B x, y = $ + 2, + 5'
#x+ y x+ y &
Answer, giving reasons, the following questions:
a) The company is studying the possibility of increasing the production of one of the
goods. The increase of the production of which good would be more interesting?
b) If the production of good x is reduced by 0.1 units, how much should vary the
production of good y such that the benefit remains constant?
c) If we know that the produced quantity of the goods depends on the use of
production factors capital and labour( K y L) in the following way
x = ln ( K L ) + K 2 L
y = 2 K L1/ 3
How would behave the profit of the company if an infinitesimal increment on the use
of factor capital takes place?


27- The income (I ) of a company depends on sales of two goods x1 and x2 , in the
2
( )
following way: I x1 , x2 = 4x1 x2 + 3x1

Those amounts depend on advertising expenditure (P) in the following manner:

1 3
x1= P ; x2= (P-3)
2 4
a) Determine the variation on the income of the company if an infinitesimal
variation happens on the expenditure on advertising when the current expenditure
in that concept is 4 m.u.
b) Estimate the variation on the income of the company if the expenditure in
advertising is increased by 0.2 m.u.

28.- Given the relation: j ( x, y, z ) = 3x 2 y z - y ln x - 3 = 0 .
(a) Study if the following function exists x= f (y, z) at a neighbourhood of point
(1,1,1).
(b) Calculate ¶ x/ ¶ z y ¶ x / ¶ y at point (1,1).

29.- Given the expression j ( x, y, z ) = xyz + e z - x - 2 = 0 . Does x=f (y, z) exist at a
neighbourhood of point (1,1,1)?

30.- Given the expression: xy + e z - x – zy = 1 . Does z= f(x,y) exist at a neighbourhood of
point (1,0,1)?

12
31.- Given e xy + y sen x - 1 = 0.
a) Prove the existence of x as an implicit function of y at a neighbourhood of point
(0,1).
b) at a neighbourhood of point (0,1), Is y and implicit function of x?
dx
c) If y = 2t 3 +4 . Calculate (t0 )
dt
x
32.- Given the relation y ( x, y, z ) = y 2 + + e yz ln x = 1
z
a) Study if this expression implicitly defines x = f ( y, z ) , at a neighbourhood of
point ( x, y, z ) = (1,0,1)
b) Calculate, if possible, the differential of the implicitly defines x = f ( y, z ) at
( y, z ) = ( 0,1)


33.- If we know that 𝛿 = 𝑄𝐾 = 𝐿 + 𝑒 NEO = 4 implicitly defines Q= f(K,L), where Q is
the produced quantity, K factor capital, and L labor at a neighbourhood of point (Q, K,
L)=(3,1,1), calculate the marginal productivities with respect to both production
factors.


34.- Suppose that the utility function of a consumer U, it is related with the
consumption levels of two goods x and y: F (U , x, y ) = 2Uxy 2 - lnU - 6 xy + 4 = 0
(a) Prove the existence of function U=f(x,y) in a neighbourhood of the point
(U,x,y)=(1,1,1).
(b) If an infinitesimal increment on the consumption of good x happens, which will be
the effect on the utility?
(c) If in order to compensate a decrease on the consumed amount of good y of 0.3
units, the consumption of good x increases by 0.02 units, By how much would be
affected the utility of the consumer?

35.- A company produces a good using two production factors. The relation among the
production and the used quantities of both factors is
K 2L
j ( q, K , L ) = ln q - +1 = 0
Q
Does this expression define the production of the company as a function of the used
quantities of production factors if q= 1, K= 1, L= 1? If so, obtain the marginal
productivities with respect to K and L.


36.- There is an empirical study that shows that there is a relationship between
oranges’ demand (D), oranges’ price, P1, and mandarins’ price, P2:

13
 D P1 - P2
F ( D, P1 , P2 ) = P12 + +e + ln D - 3 = 0
P2
a) Study if this equation implicitly defines the demand as a function of the price of
oranges and mandarins in a neighbourhood of point (1,1,1).
b) How would an increase on the oranges’ price affect the demand? And an increase
on the mandarins’ price?

14
 UNIT 6. HOMOGENEOUS FUNCTIONS


1.- Study if the following functions are homogeneous using the definition:
x3 + 3 y 3 2 2
a) f ( x, y) = 2 b) f ( x, y) = e x + y
x + 2y 2

x- y
x2 + y 2 + z 2 e
c) f ( x, y, z ) = tg d) f ( x, y) =
xy + yz x + 6y

æxö æ 3x ö
e) f ( x, y ) = sin ç ÷ f) f ( x, y, z ) = z 3 sin ç ÷
è yø è yø

2.- Study if the following functions are homogeneous and verify if Euler’s Theorem holds:
x2 + y 2
a) f ( x, y) = 2 x 4 y 3 + 4 x3 y 4 b) f ( x, y) =
x+ y

3- If f ( x, y ) and g ( x, y ) are two homogeneous functions of degree 2 and 3
respectively, study if the following functions are homogeneous indicating on which
properties you rely:

f ( x, y )
a) h( x, y ) =
g ( x, y )
¶g
b) k ( x, y ) = f ( x, y ) + ( x, y )
¶x
¶f
( x, y )
c) l ( x, y ) = ¶x
¶g
( x, y )
¶x
d) m( x, y ) = f ( x, y ) + g ( x, y )


4.- Let f1 ( x, y ) , f 2 ( x, y ) ,..., f k ( x, y ) be functions which homogeneity degrees are
respectively, m1 ,m2 ,...,mk and let c1 ,c2 ,...,ck be arbitrary real numbers. Is
g = c1 f1 x, y + c2 f 2 x, y + ...ck f k x, y a homogeneous function?
( ) ( ) ( )

5.- Given the Cobb-Douglas production function: Q = f ( K, L) = AK α Lβ where Q
represents the produced quantity, L labor units and K capital units, and where A, α, β
are real, positive parameters:
• Study if this function is homogeneous and if so, its homogeneity degree.
• Economical interpretation of the homogeneity degree.

15
 Given Q = f (K , L ) = 10 K L obtain its labor marginal productivity and study its
1/ 3 2 / 3
•
homogeneity based on the studied properties.

6.- Given the production function: Q = f (x1 , x2 ,..., xn ) with homogeneity degree 4/3,
determine the increment on the production level Q when inputs, xi, are increased by
40%. What happens when inputs are decreased by 30%?

7.- Given the following production function:
Q = f ( x1 , x2 ) = ( ax1- c + bx2 - c )
-1/ c
a, b, c > 0

Explaining the output Q as a function of two inputs (x1 , x2 ):
• Find the effect on the production level of a proportional variation of the inputs.
• Obtain the marginal productivities and comment their sign. Is in this case true that
proportional variations in the inputs (x1 , x2 ) do not affect the marginal
productivities?

8.- Given the following production function:
æKö
Q = f ( K , L ) = L K ln ç ÷
è L ø
What would be the effect on production of a proportional change on production factors?
Discuss the type of returns.


9.- For a certain consumer the demand of a particular good (D) depends on its price (p), on
the price of two alternative goods (p2, p3) and on his income level (R):

p2 + 2 R
D ( p , p 2 , p3 , R ) =
2 p3 + p
(a) What happens with the demanded quantity if prices and income vary all in the
same proportion, for example, they increase by 15%.
(b) Consider now a different consumer whose demand is a homogeneous function of
degree 1:
D '( p1, p2 , p3 , R)

What would happen with the demanded quantity if prices and increase all by 15%.

16


PROPOSED EXERCISES FOR THE STUDENT
PART III. MATHEMATICAL PROGRAMMING
UNIT 7: CLASSICAL MATHEMATICAL PROGRAMMING

8.- Obtain the optima of the following functions
a) f ( x, y ) = x3 + xy 2 - x
b) f ( x, y ) = e x + e y
c) f ( x, y ) = x3 + y 3
d) f ( x, y ) = x2e y + y
e) f ( x, y, z ) = x 2 - y 2 + z 2 - 4x + 6 y + 4z + 16
f) f ( x, y ) = x2 + ye y

10.-A firm produces three goods whose prices in a market of perfect competence are
p1 = 12, p2 = 16, p3 = 24 . If its cost function is:
C ( q1 , q2 , q3 ) = q12 + 2q22 + 3q32 + 2q1q2 + 25
Obtain the values of q1, q2 and q3 which maximize the benefit of the firm.
11.-The income of a firm is given by
I ( x, y ) = 15x + 12 y
And its costs by
C ( x, y ) = x3 + 3xy 2 + 5
Obtain the quantities to be sold by the company such that the benefit is maximum.

12.-Solve the following mathematical programs
a) f ( x, y ) = x2 + y 2 + x + y + 7 s.t: x + y = 2
f ( x, y ) = 200 - ( x - 2) - ( y - 2)
2 2
b) s.t: x + y = 16
c) f ( x, y ) = xy s.t: x + 2 y = 4
d) NO
e) f ( x, y ) = e x + e y s.t: x + y = 2
f) f ( x, y ) = x + y
2 2
s.t: xy = 4
g) f ( x, y ) = x3 + 3xy 2 s.t: xy = 9

13.- Given the programs
a) Opt f ( x, y ) = x 2 + y 2 - 2 x - 2 y and
Opt f ( x, y ) = x 2 + y 2 - 2 x - 2 y
b)
s.t : x + y = c
Determine under which condition they have the same optimum solution.

17
 3 1
14.-The Cobb-Douglas production function of a firm is given by Q ( L, K ) = 100L4 K 4
where L represents units of labour (150 monetary units per unit of labour) and K
represents capital units (250 m.u. per unit of capital). The total cost of labour and
capital is limited to 50,000 m.u. Find the maximum production level of this firm taking
into account the previous information (it is not necessary to check the sufficient
condition).

15.-The monthly production function of a firm is
Q ( x, y ) = 4 xy - 8x
Where variable x indicates the monetary units used for remuneration of labour and
variable y monetary units used for remuneration of raw materials.
Determine the monthly optimum production if the firm has a monthly budget of
60,000 monetary units for the acquisition of raw materials and for remuneration of
labour. The firm has to expend each month all its budget.
16.-Let us consider a firm which produces a good using to inputs. If its production
function is:
Q ( x, y ) = 5x + 2 y
And its cost function is:
C ( x, y ) = 8x 2 + 4 y 2
Determine the quantities of inputs with which the cost of producing 33 units of the
good is minimized. Would it be profitable to produce one more unit of the product
supposing its unitary price was 10 monetary units?

18.-A tv firm has a monthly income of 3x + 2 y millions of euros, being x the number
of subscribers who have hired 80 channels and y the number of subscribers who have
hired 40 channels (both in thousands).
Knowing that the relation between the users hiring the different services is given by
x2 + y 2 = 13 and that the firm is in its best financial moment, how many contracts has
the firm at this moment?

19.- A consumer wants to expend 250 m.u. of his budget in the consumption of two
goods in quantities x1 and x2 . His utility function is

U ( x1 , x2 ) = 20ln( x1 ) + 30ln(x2 ) ,
And the unitary prices are p1 = 5 m.u. and p2 = 6 m.u.
a) Calculate the quantities of the goods that the consumer should consume such
that he maximizes his utility.
b) Which would be the effect on the utility of an increase of one monetary unit in
the firm’s budget?
20.- A Publisher has 5 million euros to invest in the development and promotion of a
new book. They calculate that if they expend x millions of euros in development and y
3
millions in promotion they will obtain the following sales V ( x, y ) = x 2 y .

18
a) How much money should they assign to development and how much to promotion
in order to maximize sales?
b) If the Publisher has 0.1 million euros more, how would the maximum sales level be
affected?
21.- Given the function f ( x, y ) = x2 + ay 2 - 2 ( x - y ) ,
a) Determine (based on the values of a ) the unconstrained optimum.
b) Introduce a constraint such that the previous optimum is not a feasible
solution of the constrained program.
c) For a = 2 determine the optima of the function, constrained to the
following equation 3x - 4 y = 5 . Compare the result with the optimum
obtained in case a).
22.- Solve the program
Opt U ( x, y, z ) = ( x - 1) + ( y - 2 ) + ( z - 3)
2 2

s.t : x + y + z = 18
How would the optimum value of the objective function be affected by an infinitesimal
change in the constant of the constraint? Why?

19