MINISTRY OF EDUCATION AND TRAINING

NATIONAL ECONOMICS UNIVERSITY

MATHEMATICS FOR ECONOMICS AND BUSINESS

CALCULUS AND ITS APPLICATIONS

LECTURER : Dr.TONG THANH TRUNG

HA NOI 11/2020
 PART 2

Functions of one variable

2

3 Integration and It’s applications

PROGRAM
STRUCTURE

4 Functions of several variables

5 Review
CALCULUS AND ITS APPLICATIONS

LECTURER : Dr. TONG THANH TRUNG

HA NOI 11/2020

Copyright © 2019 - Trường Đại học Kinh tế Quốc dân

v1.0014105206
CHAPTER II: FUNCTIONS OF ONE VARIABLE

LESSON 2.1. Functions of one variable:

Fundamental concepts

LESSON 2.2. Limits and Continuity

LESSON 2.3. Differentiation

LESSON 2.4. Applications of differentiation

 CHAPTER II
FUNCTIONS OF ONE VARIABLE
LESSON 2.1 FUNDAMENTAL CONCEPTS FOR FUNCTION
OF ONE VARIABLE

LESSON 2.1’S GOALS: YOU WILL BE ABLE TO UNDERSTAND

Phân tích nội dung khoa học kiến

2.1.1 Some basic
thTthtPhân tích concepts forhọc
nội dung khoa functions of
2 Phân tích nội dung khoa học kiến thức “Động lực
one variable
học chất điểm”

2
2.1.2 Some functions in economics
 Chapter I: Functions of one variable
LESSON 1.1: Fundamental concepts for
function of one variable
2.1.1. Some basic concepts for functions of one
variable
 In everyday life, a variable may depend on one or more
changing variables.
 plant’s growth depends on sunlight and rainfall
 speed depends on distance traveled and time taken
 output depends on capital and labor v
 salary depends on education, experience, etc.
 Examples: y = f(x) = 5x+2
 y = g(x) = 5x2 + 3x + 4
 y = h(x) = (5x+1)/(3x-2).
Example: f(x) = 5x+2

f
y = f(x)

X Y

Domain Range
Some basic concepts for functions
Def 2.1: The variable is a symbol of the values on a
certain set of numbers.
Def 2.2: Let two X and Y be subsets of ℝ. A function f
from set X to set Y is a rule that assigns an unique
element y in Y to each element 𝒙𝒙 ∈ 𝑿𝑿
Denote: 𝒚𝒚 = 𝒇𝒇(𝒙𝒙)
In this notation, the symbol f represents the
function, the letter x is the independent variable
representing the input value of f, and y is the
dependent variable or output value of f at x.
Some basic concepts for functions

Def 2.3: Let a function y = f(x).

 The set contains all the values of the independent
variable of a function is called Domain of that
function.
 Real number 𝒚𝒚𝟎𝟎 corresponding to 𝒙𝒙𝟎𝟎 through rule f
is called the value of that function at 𝒙𝒙𝟎𝟎 .
 Gather all the values of the function when the
independent variable changes in the domain set is
called the Range of values of that function.
 Some basic concepts for functions
 Def 2.4: Let a function y=f(x) with domain D, its
graph consists of the points in the Cartesian plane
whose coordinates are the input-output pairs for f. By
the set notation, the graph is 𝒙𝒙, 𝒇𝒇 𝒙𝒙 | 𝒙𝒙 ∈ 𝑫𝑫
The graph of a function f is a drawing that represents
all the input-output pairs (𝒙𝒙, 𝒇𝒇(𝒙𝒙)).
Increasing and decreasing functions
 The basic geometric properties of a function are
whether it is increasing or decreasing and the location
of its local and global minima and maxima.
Some basic concepts for functions
Def 2.5: Let a function y=f(x).
 A function is increasing if its graph moves upward
from left to right. More exactly, a function f is
increasing if ∀𝒙𝒙𝟏𝟏 , 𝒙𝒙𝟐𝟐 ∈ 𝑫𝑫: 𝒙𝒙𝟏𝟏 < 𝒙𝒙𝟐𝟐 ⇒ 𝒇𝒇 𝒙𝒙𝟏𝟏 < 𝒇𝒇(𝒙𝒙𝟐𝟐 )

 A function is decreasing if its graph moves

downward from left to right. More exactly, a function f
is decreasing if
∀𝒙𝒙𝟏𝟏 , 𝒙𝒙𝟐𝟐 ∈ 𝑫𝑫: 𝒙𝒙𝟏𝟏 < 𝒙𝒙𝟐𝟐 ⇒ 𝒇𝒇 𝒙𝒙𝟏𝟏 > 𝒇𝒇(𝒙𝒙𝟐𝟐 )
Some basic concepts for functions

If the graph of a function climbs or rises as you

move from left to right, we say that the function is
increasing.

 If the graph descends or falls as you move from

left to right, the function is decreasing.
Linear Functions and Non-Linear functions
Def 2.6: Let a function 𝐲𝐲 = 𝒇𝒇(𝒙𝒙). We say that a function f
is a linear function if it satisfies two following
conditions:
1. ∀𝒙𝒙𝟏𝟏 , 𝒙𝒙𝟐𝟐 ∈ 𝑫𝑫: 𝒇𝒇 𝒙𝒙𝟏𝟏 + 𝒙𝒙𝟐𝟐 = 𝒇𝒇 𝒙𝒙𝟏𝟏 + 𝒇𝒇(𝒙𝒙𝟐𝟐 )
2. ∀𝒙𝒙 ∈ 𝑫𝑫 𝒂𝒂𝒂𝒂𝒂𝒂 ∀𝝀𝝀 ∈ 𝑹𝑹: 𝒇𝒇 𝝀𝝀𝝀𝝀 = 𝝀𝝀𝒇𝒇 𝒙𝒙
Example: 𝒇𝒇 𝒙𝒙 = 𝟒𝟒𝟒𝟒 − 𝟑𝟑
 𝒚𝒚 = 𝒂𝒂𝒂𝒂 + 𝒃𝒃
 a: the slope; b: y-the intercept
Non-Linear function:
 Quadratic functions: f(x) = ax2 + bx + c (𝒂𝒂 ≠ 𝟎𝟎)
Linear Functions and Non-Linear functions

 Polynomial functions: 𝑷𝑷 𝒙𝒙 = 𝒂𝒂𝒏𝒏 𝒙𝒙𝒏𝒏 + 𝒂𝒂𝒏𝒏−𝟏𝟏 𝒙𝒙𝒏𝒏−𝟏𝟏 + ⋯ + 𝒂𝒂𝟎𝟎

 Rational functions:
 y = k/x: y is inversely proportional to x
 y = 1/x + 2
 y =(1-x)/(x3-3x+2)
 y = p(x)/q(x)
 Absolute value functions: 𝒚𝒚 = |𝒙𝒙 − 𝟐𝟐|
 Exponential functions: 𝒚𝒚 = 𝟓𝟓𝒙𝒙 , 𝒚𝒚 = 𝒆𝒆𝒙𝒙
 Logarithm functions: 𝒚𝒚 = 𝒍𝒍𝒍𝒍𝒈𝒈𝒂𝒂 𝒙𝒙 , 𝐲𝐲 = 𝒍𝒍𝒍𝒍 𝒙𝒙 , 𝒚𝒚 = 𝒍𝒍𝒍𝒍 𝒙𝒙
 2.1.2 SOME FUNCTIONS IN ECONOMICS

 TC = a + b⋅Q
 QD = a – b⋅P; QS = - c + d⋅P (a, b, c, d >0)
𝐓𝐓𝐓𝐓
 𝐀𝐀𝐀𝐀 =
𝐐𝐐

 Revenue(Q) = p Q;
Find the break–even point for a firm with the following revenue
and cost functions:
 R(Q) = 20Q; TC(Q) = 5Q+1500
 We have profit function of firm is 𝝅𝝅 = 𝑻𝑻𝑻𝑻 − 𝑻𝑻𝑻𝑻 = 𝟏𝟏𝟏𝟏𝟏𝟏 − 𝟏𝟏𝟏𝟏𝟏𝟏𝟏𝟏
 Thus, the break–even point for a firm is Q = 100.
 Basic Terminologies

Variable
Function of one variable
Domain
Range
Linear function and Non-linear function
Increasing function
Decreasing function
Revenue function, Total cost function
 LESSON 2.2: LIMITS AND CONTINUITY

By the end of this lesson we will able to:

 understand about limits of a function of

one variable

 continuity of function of one variable

 LESSON 2.2: LIMITS AND CONTINUITY
 To understand what is really going on in differential
calculus, we first need to understand about the limits.

 In the studying of calculus, what happens to the

value of a function as the independent variable gets
very close to a particular value is very important.

 Consider function: S(t) = 20 + 5t

 If we want to know the distance traveled after 10
hours, what would we do?
We substitute t = 10 into the above equation.
 Limits and Continuity

For some functions, at some certain points, we can’t do

that.
𝒔𝒔𝒔𝒔𝒔𝒔𝒔𝒔
𝒇𝒇 𝒙𝒙 = 𝒙𝒙
at 𝒙𝒙𝟎𝟎 = 𝟎𝟎?

 What should we do?

 Look at the value at a very nearby point f(x).
 For MANY functions, as 𝒙𝒙 gets closer to 𝒙𝒙𝟎𝟎 , 𝒇𝒇(𝒙𝒙)
always approaches certain value, and we call it a limit.
 I. Limits
I. Definitions

Def 2.1: As x approaches the a, the limit of f(x) is L, written

lim 𝑓𝑓(𝑥𝑥) = 𝐿𝐿
𝑥𝑥→𝑎𝑎
if all values of f(x) are close to L for values of x that are
sufficiently close, but not equal, to a. The limit L must be a
unique real number.
We use the notation lim+ 𝑓𝑓(𝑥𝑥) = 𝐿𝐿 to indicate the limit from
𝑥𝑥→𝑎𝑎
the right (that is, where x > a).

We use the notation lim− 𝑓𝑓(𝑥𝑥) = 𝐿𝐿 to indicate the limit from

𝑥𝑥→𝑎𝑎
the left (that is, where x < a).
 Limits of function one variable

Theorem 2.1
As x approaches the 𝒙𝒙𝟎𝟎 , the limit of 𝒇𝒇 𝒙𝒙 is L if the limit
from the left exists and the limit from the right exists and
both limits are equal 𝑳𝑳. That is, 𝐥𝐥𝐥𝐥𝐥𝐥+ 𝒇𝒇(𝒙𝒙) = 𝐥𝐥𝐥𝐥𝐥𝐥− 𝒇𝒇(𝒙𝒙) = 𝑳𝑳
𝒙𝒙→𝒂𝒂 𝒙𝒙→𝒂𝒂

Example:
 Limits of function one variable

Def 2.2: (Limits at Infinity) If the value of the function

𝑓𝑓(𝑥𝑥) approach the number 𝐿𝐿 as 𝑥𝑥 increases without bound,
we write lim 𝑓𝑓(𝑥𝑥) = 𝐿𝐿.
𝑥𝑥→+∞
Similarly, we write lim 𝑓𝑓(𝑥𝑥) = 𝑀𝑀 when the function values
𝑥𝑥→−∞
𝑓𝑓(𝑥𝑥) approach the number M as decreases without bound.

Def 2.3: (Infinite Limits) We say that lim 𝑓𝑓(𝑥𝑥) is an

𝑥𝑥→𝑥𝑥0
infinite limit if 𝑓𝑓(𝑥𝑥) increases or decreases without
bound as 𝑥𝑥 → 𝑥𝑥0 . We write lim 𝑓𝑓(𝑥𝑥) = +∞ if 𝑓𝑓(𝑥𝑥)
𝑥𝑥→𝑥𝑥0
increases without bound as 𝑥𝑥 → 𝑥𝑥0 or lim 𝑓𝑓(𝑥𝑥) = −∞ if
𝑥𝑥→𝑥𝑥0
𝑓𝑓(𝑥𝑥) decreases without bound as 𝑥𝑥 → 𝑥𝑥0
 Limits of function one variable

Example:
2. Limit Properties (Page 110)
 II. Continuity of function one variable

Def 2.4: A function f is continuous at 𝑥𝑥0 if all three of

these conditions are satisfied:
 𝑓𝑓 𝑥𝑥0 is defined (the output at 𝑥𝑥0 exists)
 lim 𝑓𝑓 𝑥𝑥 exists (the limit as 𝑥𝑥 → 𝑥𝑥0 exists)
𝑥𝑥→𝑥𝑥0
 𝑙𝑙𝑙𝑙𝑙𝑙 𝑓𝑓 𝑥𝑥 = 𝑓𝑓(𝑥𝑥0 ) (the limit of the given function
𝑥𝑥→𝑥𝑥0
at 𝑥𝑥0 is the same as output)
Def 2.5: A function 𝑓𝑓 is continuous over an open

interval 𝑎𝑎, 𝑏𝑏 if and only if it is continuous at each

point in 𝑎𝑎, 𝑏𝑏 .
 Continuity

Def 2.6: A function f is continuous on the closed

interval [𝑎𝑎, 𝑏𝑏] if it is continuous on the open interval
𝑎𝑎, 𝑏𝑏 and lim+ 𝑓𝑓 𝑥𝑥 = 𝑓𝑓(𝑎𝑎) and 𝑙𝑙𝑙𝑙𝑙𝑙− 𝑓𝑓 𝑥𝑥 = 𝑓𝑓(𝑏𝑏).
𝑥𝑥→𝑎𝑎 𝑥𝑥→𝑏𝑏

Example: Consider continuity of the function f, given

2𝑥𝑥 − 1, 𝑓𝑓𝑓𝑓𝑓𝑓 𝑥𝑥 < 2

by: 𝑓𝑓 𝑥𝑥 = �
𝑥𝑥 + 2, 𝑓𝑓𝑓𝑓𝑓𝑓 𝑥𝑥 ≥ 2
 Basic Terminologies

Limits
Left limit and right limit
Limits at Infinity
Infinite Limits
Continuity
 Limits and Continuity

Exercises:

Limits: From Ex 19 to 80 (Pages 106-108)

Ex 19 to 36 (Page 118)
Ex 77 to 84 (Page 121)
Continuity: Ex 50 to 72 (Pages 119-120)
 LESSON 2.3: Derivatives

Lesson 2.3’s goals: consolidating your knowledge

about derivative.
By the end of the lesson we will be better able to:

 understand the derivative concepts

 understand the meaning of derivatives

 practice the derivative calculation Rules

 LESSON 2.3: Derivatives

I. Definitions
Def 3.1: Let the function 𝑦𝑦 = 𝑓𝑓(𝑥𝑥). The average rate
of change of y with respect to x, as x change from
𝑥𝑥1 to 𝑥𝑥2 is the ratio of the change in output to the
change of input:
𝑦𝑦2 −𝑦𝑦1 𝑓𝑓 𝑥𝑥2 −𝑓𝑓 𝑥𝑥1
= , where 𝑥𝑥1 ≠ 𝑥𝑥2 .
𝑥𝑥2 −𝑥𝑥1 𝑥𝑥2 −𝑥𝑥1
Example: Let a function y = f 𝑥𝑥 = 𝑥𝑥 3 . Find the
average of change as
a) 𝑥𝑥 changes from 1 to 3.
b) 𝑥𝑥 changes from 2 to 3.
=> want some measure to indicate the rate of
change at a point
Instantaneous rate of change
 Given a function f(x), the following value:
f ( x0 + ∆x) − f ( x0 )
lim
∆x →0 ∆x

 If it does exist, measure the instantaneous

rate of change of f(x) at 𝑥𝑥0
 Derivatives

Def 3.2: The derivative of a function 𝑦𝑦 = 𝑓𝑓(𝑥𝑥) at the

point 𝑥𝑥0 is the slope of the tangent line at that point

f ( x0 + ∆x) − f ( x0 )
lim = f '( x0 )
∆x → 0 ∆x
If 𝑓𝑓′(𝑥𝑥0 ) exists, then we say that 𝑓𝑓 is differentiable at
point 𝑥𝑥0.
Def 3.3: We say that the function 𝑓𝑓 is differentiable
over (𝑎𝑎, 𝑏𝑏) if it is differentiable at each point 𝑥𝑥0 in (𝑎𝑎, 𝑏𝑏).
 The derivative calculation Rules: The power rule, the
Sum-Difference rules, The Product rule, Quotient rule,
chain rule.
 II. Higher-order Derivatives
Consider the function given by
y = f ( x) = x 6 − 3x 4 + 2 x3 − 5 x + 7
Its derivative 𝑓𝑓𝑓 is given by:
y ' = f '( x) = 6 x5 − 12 x3 + 6 x 2 − 5.
The derivative function 𝑓𝑓′ can also be differentiated. We can
think of the derivative of 𝑓𝑓𝑓 as the rate of change the slope of
the tangent lines of 𝑓𝑓. It can also be regarded as the rate at
which 𝑓𝑓𝑓(𝑥𝑥) is changing. We use the notation 𝑓𝑓𝑓𝑓 for the
derivative (𝑓𝑓𝑓)’. That is, 𝑓𝑓𝑓𝑓(𝑥𝑥) = (𝑓𝑓𝑓(𝑥𝑥))’.
We call 𝑓𝑓𝑓𝑓 is second derivative of 𝑓𝑓.
Continuing in this manner, we have
f '''( x) = ( f ''( x))' (The third derivative of f)

( )
'
f ( ) ( x) f(
n n −1)
= ( x) (for all n ≥ 4) (The nth derivative of f)
 EXERCISES

1-84, PAGE 173-175 (TENTH EDITION)

1-42, PAGE 182-183 (TENTH EDITION)

Exercises: (Laurence D. Hoffmann)

Ex 19 to 28; 31,32 (Page 125)
Ex 52 to 63 (Page 126-127)
 CHAPTER II
FUNCTIONS OF ONE VARIABLE
LESSON 2.4 APPLICATIONS OF DIFFERENTIATION
LEC 2.4’S GOALS: YOU WILL BE ABLE TO UNDERSTAND
2.4.1 Using first derivative to find maximum and
2 minimum
Phân tích values.
nội dung khoa học kiến
thTthtPhân tích nội dung khoa học
2
2.4.2 Using
Phân the
tích nội
học chất điểm”
second
dung derivative
khoa học kiến thức “Độngto
lựcfind maximum
and minimum values.ật lí 1

2.4.3
2 Using derivatives to find absolute maximum
and minimum values.ật lí 10

2.4.4 Some Maximum-Minimum problems in

2 business and economics.í

2.4.5
2 Marginality and Elasticityậ lí 10
 I. MAXIMIUM/ MINIMUM PROBLEMs

 Profit maximizing
 Cost minimizing/ risk minimizing/ efficient
portfolios
 Optimal inventory
 Key formulas:
 Profit = Revenue – Cost
 Revenue = price. Sales
 Price is given if the product is under
competitive market
 Price may vary with sales if the firm has some
monopoly power
2.4.1. DEFINITIONS
Def 4.1: A critical value of a function 𝑓𝑓 is any number
𝑐𝑐, in the domain of function, for which the tangent
line at (𝑐𝑐, 𝑓𝑓(𝑐𝑐)) is horizontal or for which the
derivative does not exist. That is, c is a critical value
if 𝑓𝑓(𝑐𝑐) exists and 𝑓𝑓𝑓(𝑐𝑐) = 0 or 𝑓𝑓𝑓(𝑐𝑐) does not exist.
Def 4.2: Let 𝐷𝐷 be the domain of 𝑓𝑓.
 𝑓𝑓(𝑐𝑐) is a relative minimum if there exists within 𝐷𝐷
an open interval 𝐷𝐷1 = (𝑐𝑐 − 𝛿𝛿, 𝑐𝑐 + 𝛿𝛿) such that
𝑓𝑓(𝑐𝑐) < 𝑓𝑓(𝑥𝑥), for all 𝑥𝑥 in 𝐷𝐷1 \{𝑐𝑐}.
 𝑓𝑓(𝑐𝑐) is a relative maximum if there exists within 𝐷𝐷
an open interval 𝐷𝐷1 = (𝑐𝑐 − 𝛿𝛿, 𝑐𝑐 + 𝛿𝛿) such that
𝑓𝑓(𝑐𝑐) > 𝑓𝑓(𝑥𝑥), for all 𝑥𝑥 in 𝐷𝐷1 \{𝑐𝑐}.
Relative maximum or minimum values,
collectively referred to as relative extrema
(singular: extremum).

A function may have more

than one relative maximum
 2.4.2. Using first derivatives to find
maximum and minimum values.
THEOREM 4.1:

1) IF F’(X)>0 FOR ALL X IN I, THEN F IS

INCREASING OVER I.

2) IF F’(X)<0 FOR ALL X IN I, THEN F IS

DECREASING OVER I.

=> MAXIMUM: THE BOUNDARY POINT

=> MINIMUM: THE BOUNDARY POINT

 MAXIMUM OF MONOTONIC FUNCTIONS

Example:
a) f(x) = 2+3x on [10,20]?
b) b) f(x) = 2x2 – 5x +3 on [2.5, 10]?
c) f(x) = 2x2 – 5x +3 on [0, 2.5]?

A FUNCTION THAT IS MONOTONIC

ON SOME CLOSED INTERVAL WILL
HAVE A MAXIMUM AND A MINIMUM
AT THE BOUNDARY.
Theorem 4.2: If a function 𝑓𝑓 has a relative extreme value
𝑓𝑓(𝑐𝑐) on an open interval, then 𝑐𝑐 is a critical value, so
𝑓𝑓𝑓(𝑐𝑐) = 0 or 𝑓𝑓𝑓(𝑐𝑐) does not exist.

Theorem 4.3: (The first–derivative test for relative

extrema)
For any continuous function 𝑓𝑓 that has exactly one critical
value 𝑐𝑐 in an open interval (𝑎𝑎, 𝑏𝑏):
a) The function 𝑓𝑓 has a relative minimum at 𝑐𝑐 if 𝑓𝑓𝑓(𝑥𝑥) < 0
on (𝑎𝑎, 𝑐𝑐) and 𝑓𝑓𝑓(𝑥𝑥) > 0 on (𝑐𝑐, 𝑏𝑏). That is, 𝑓𝑓 is decreasing
to the left of 𝑐𝑐 and increasing to the right of 𝑐𝑐.
b) f has a relative maximum at 𝑐𝑐 if 𝑓𝑓𝑓(𝑥𝑥) > 0 on (𝑎𝑎, 𝑐𝑐) and
𝑓𝑓𝑓(𝑥𝑥) < 0 on (𝑐𝑐, 𝑏𝑏). That is, 𝑓𝑓 is increasing to the left of 𝑐𝑐
and decreasing to the right of 𝑐𝑐.
c) 𝑓𝑓 has neither a relative maximum nor a relative
minimum at 𝑐𝑐 if 𝑓𝑓𝑓(𝑥𝑥) has the same sign on (𝑎𝑎, 𝑐𝑐) as on
(𝑐𝑐, 𝑏𝑏).
Example 1: Find the relative extrema of the function 𝑓𝑓
given by:
a) 𝑓𝑓 𝑥𝑥 = 𝑥𝑥 3 − 𝑥𝑥 2 − 𝑥𝑥 + 2
𝑒𝑒 2𝑥𝑥+1
b) 𝑦𝑦 =
3𝑥𝑥+4
Example 2: An office supply company sells 𝑥𝑥
markers per year for $𝑝𝑝/𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 . The demand
equation for these markers is given by:
𝑝𝑝 = 10 – 0.001𝑥𝑥.
a) What price should the company charge per
marker in order to maximize revenue? What is the
maximum revenue?

b) If the cost function is 𝐶𝐶(𝑥𝑥) = 5,000 + 2𝑥𝑥. What

is the company’s maximum profit?
 2.4.3. Using second derivatives to find
maximum and minimum values.
CONCAVITY:

Let a function 𝑦𝑦 = 𝑓𝑓(𝑥𝑥) defined on interval 𝐼𝐼. We

say 𝑓𝑓 is concave if

f (ax1 + (1 − a ) x2 ) ≥ af ( x1 ) + (1 − a ) f ( x2 )
0 ≤ a ≤ 1, ∀x1 , x2 ∈ I .
CONCAVE DOWN: SLOPE DECREASING

CONCAVE DOWN: f’(x) decreasing

CONCAVE DOWN: f’’(x)<0 (for all x)

THE SECOND-DERIVATIVE TEST FOR RELATIVE EXTREMA

Theorem 4.4: (The second-derivative test for

relative extrema)
Suppose that 𝑓𝑓 is differentiable for every 𝑥𝑥 in
an open interval (𝑎𝑎, 𝑏𝑏) and that there is a critical
value 𝑐𝑐 in (𝑎𝑎, 𝑏𝑏) for which 𝑓𝑓𝑓(𝑐𝑐) = 0. Then:
a) 𝑓𝑓(𝑐𝑐) is a relative minimum if 𝑓𝑓𝑓𝑓(𝑐𝑐) > 0.
b) 𝑓𝑓(𝑐𝑐) is a relative maximum if 𝑓𝑓𝑓𝑓(𝑐𝑐) < 0.
c) For 𝑓𝑓𝑓𝑓(𝑐𝑐) = 0, the first-derivative test can be
used to determine where 𝑓𝑓(𝑥𝑥) is a relative
extremum.
 EXAMPLES

Example 3: Find the maximum profit and the

number of units that must be produced and sold in
order to yield the maximum profit. Assume that
revenue, R(x), and cost, C(x), are in dollars.
2 1 3
𝑅𝑅 𝑥𝑥 = 100𝑥𝑥 − 𝑥𝑥 ; 𝐶𝐶 𝑥𝑥 = 3
𝑥𝑥 − 6𝑥𝑥 2 + 89𝑥𝑥 + 100
 II. USING DERIVATIVES TO FIND ABSOLUTE
MAXIMUM AND MINIMUM VALUES

Definition: Suppose that 𝑓𝑓 is a function with domain 𝐼𝐼.

𝑓𝑓(𝑐𝑐) is absolute minimum if 𝑓𝑓 𝑐𝑐 ≤ 𝑓𝑓 𝑥𝑥 , for all 𝑥𝑥 in 𝐼𝐼.
𝑓𝑓(𝑐𝑐) is absolute maximum if 𝑓𝑓 𝑐𝑐 ≥ 𝑓𝑓 𝑥𝑥 , for all 𝑥𝑥 in 𝐼𝐼 .

Another definition: Suppose that 𝑦𝑦 = 𝑓𝑓(𝑥𝑥) is a

function with domain 𝐼𝐼. The number 𝑀𝑀 is called
absolute maximum of 𝑓𝑓if 𝑓𝑓 𝑥𝑥 ≤ 𝑀𝑀, for all 𝑥𝑥 in 𝐼𝐼
and there is exist 𝑐𝑐 ∈ 𝐼𝐼 such that 𝑓𝑓 𝑐𝑐 = 𝑀𝑀.

Similarly, we define for absolute minimum.

 II. USING DERIVATIVES TO FIND ABSOLUTE
MAXIMUM AND MINIMUM VALUES
Theorem 4.4: Maximum-Minimum Principle 1
Suppose that 𝑓𝑓 is continuous function defined over a closed
interval [𝑎𝑎, 𝑏𝑏]. To find the absolute maximum and minimum values
over [𝑎𝑎, 𝑏𝑏]:
a) Firstly, find 𝑓𝑓𝑓(𝑥𝑥)
b) Then determine all critical values in [𝑎𝑎, 𝑏𝑏]. That is, find all 𝑐𝑐 in [𝑎𝑎, 𝑏𝑏]
for which 𝑓𝑓𝑓(𝑐𝑐) = 0 or 𝑓𝑓𝑓(𝑐𝑐) does not exist.
c) List the values from step b) and the endpoints of the interval:
𝑎𝑎, 𝑐𝑐1 , … , 𝑐𝑐𝑛𝑛 , 𝑏𝑏
d) Evaluate 𝑓𝑓(𝑥𝑥) for each value in step
𝑓𝑓 𝑐𝑐 , 𝑓𝑓 𝑎𝑎 , 𝑓𝑓 𝑐𝑐1 , 𝑓𝑓 𝑐𝑐2 , … , 𝑓𝑓 𝑐𝑐𝑛𝑛 , 𝑓𝑓(𝑏𝑏)
The largest number of these is the absolute maximum of f over [𝑎𝑎 , 𝑏𝑏].
The smallest number of these is the absolute minimum of f over [𝑎𝑎 , 𝑏𝑏].
 EXAMPLES
Example 1: Find the absolute maximum and
minimum values of 𝑓𝑓 𝑥𝑥 = 𝑥𝑥 3 − 3𝑥𝑥 + 2 over the
1
interval [−3; − ].
2

Example 2:
 FINDING ABSOLUTE MAXIMUM AND MINIMUM
VALUES OVER OTHER INTERVALS

Theorem 4.5: Maximum-Minimum Principle 2

Suppose that 𝑓𝑓 is a function such that 𝑓𝑓𝑓(𝑥𝑥) exists for
every 𝑥𝑥 in an interval 𝐼𝐼, and that there is exactly one
(critical) value 𝑐𝑐 in 𝐼𝐼, for which 𝑓𝑓𝑓(𝑐𝑐) = 0. Then
 𝑓𝑓(𝑐𝑐) is absolute maximum value over 𝐼𝐼 if 𝑓𝑓𝑓𝑓(𝑐𝑐) < 0
 Or 𝑓𝑓(𝑐𝑐) is the absolute minimum value over 𝐼𝐼 if
𝑓𝑓𝑓𝑓(𝑐𝑐) > 0.
Note: Theorem 4.5 holds no matter what the interval 𝐼𝐼 is-
whether open, closed, or infinite in length. If 𝑓𝑓𝑓𝑓(𝑐𝑐) = 0,
either we must use Maximum-Minimum Principle 1 or
we must know more about the behavior of function
over the given interval.
 EXAMPLE

Example 1: Find the absolute maximum and

minimum values of the following functions:

1 3 1 2
a) f ( x) = x − x − 2x + 1
3 2
1 3
b) g ( x) =
− x + 6 x 2 − 11x − 50 ; over (0, 3).
3
 III. SOME MAXIMUM-MINIMUM PROBLEMS IN
BUSINESS AND ECONOMICS

Example 1: Find the maximum profit and the

number of units that must be produced and sold in
order to yield the maximum profit. Assume that
revenue, 𝑅𝑅(𝑥𝑥), and cost, 𝐶𝐶(𝑥𝑥), are in thousands of
dollars and 𝑥𝑥 is thousands of units.

R=( x) 100 x − x 2 ,
1 3
C ( x) = x − 6 x 2 + 89 x + 100;
3
 MAXIMUM-MINIMUM PROBLEMS, BUSINESS AND
ECONOMICS APPLICATIONS

Example 2: The total cost, in dollars, of producing

𝑥𝑥 units of certain products is given by
1 3
𝐶𝐶 𝑥𝑥 = 8𝑥𝑥 + 20 + 𝑥𝑥
100
𝐶𝐶 𝑥𝑥
a) Find the average cost, 𝐴𝐴 𝑥𝑥 = ⋅
𝑥𝑥
b) Find 𝐶𝐶𝐶(𝑥𝑥) and 𝐴𝐴𝐴(𝑥𝑥).
c) Find the minimum of 𝐴𝐴(𝑥𝑥) and assume that
𝐴𝐴(𝑥𝑥) has minimum at 𝑥𝑥0 . Find 𝐶𝐶𝐶(𝑥𝑥0 ).
d) Compare 𝐴𝐴 𝑥𝑥0 and 𝐶𝐶𝐶(𝑥𝑥0 ).
 III. MARGINAL AND DIFFERENTIALS
Definitions:
Let 𝐶𝐶(𝑥𝑥), 𝑅𝑅(𝑥𝑥) and 𝑃𝑃(𝑥𝑥) represent, respectively, the total cost,
revenue, and profit from the production and sale of 𝑥𝑥 items.
 The marginal cost at 𝑥𝑥, given by 𝐶𝐶′(𝑥𝑥), is the approximate
cost of the 𝑥𝑥 + 1 𝑡𝑡𝑡 item:
𝑪𝑪′ 𝒙𝒙 ≈ 𝑪𝑪 𝒙𝒙 + 𝟏𝟏 − 𝑪𝑪(𝒙𝒙)
 The marginal revenue at 𝑥𝑥, given by 𝑅𝑅𝑅(𝑥𝑥), is the approximate
revenue from the 𝑥𝑥 + 1 𝑡𝑡𝑡 item:
𝑹𝑹′ 𝒙𝒙 ≈ 𝑹𝑹 𝒙𝒙 + 𝟏𝟏 − 𝑹𝑹(𝒙𝒙)
 The marginal profit at 𝑥𝑥, given by 𝑃𝑃𝑃(𝑥𝑥), is the approximate
revenue from the 𝑥𝑥 + 1 𝑡𝑡𝑡 item:
𝑷𝑷′ 𝒙𝒙 ≈ 𝑷𝑷 𝒙𝒙 + 𝟏𝟏 − 𝑷𝑷(𝒙𝒙)
 DIFFERENTIALS AND DELTA NOTATION

Now suppose that we have a function given by

𝑦𝑦 = 𝑓𝑓(𝑥𝑥). A change in 𝑥𝑥 from 𝑥𝑥0 to 𝑥𝑥0 + Δ𝑥𝑥 yields
a change in 𝑦𝑦 from 𝑓𝑓(𝑥𝑥0 ) to 𝑓𝑓(𝑥𝑥0 + Δ𝑥𝑥). This
change in 𝑦𝑦 is given by:
Δ𝑦𝑦 𝑥𝑥0 = 𝑓𝑓 𝑥𝑥0 + Δ𝑥𝑥 − 𝑓𝑓 𝑥𝑥0

Definition: For 𝑦𝑦 = 𝑓𝑓(𝑥𝑥), we define 𝑑𝑑𝑑𝑑, called the

differential of 𝑥𝑥, by 𝑑𝑑𝑑𝑑 = Δx, and it is called the
differential expression of 𝑦𝑦 , by 𝑑𝑑𝑑𝑑
𝑑𝑑𝑑𝑑 = 𝑓𝑓 ′ 𝑥𝑥 𝑑𝑑𝑑𝑑
 IV. APPLICATION: ELASTICITY

Consider the following situation:

Production with no capital: Q = 2L0.6
 Should I expand the existing plant or open
a new plant with the same production
function?
 => what happens to Q when L is doubled?
Increases 2%, increases 1%?
 ELASTICITY
Q of interest:
 when L increases by 1%, by how many
percent total output increases
 when wage increases by 1%, by how many
percent supply for labor increases
 etc.
 Elasticity: measure the sensitivity of a
dependent variable with respect to a change
in an independent variable: how many
percentage change in Y in responding to 1
percent change in X?
 ELASTICITY
The price elasticity of demand is computed as the
percentage change in the quantity demanded
divided by the percentage change in price.

Percentage change
in Quantity Demanded
Price Elasticity of Demand =
Percentage change
in Quantity Price
 ELASTICITY

Example: If the price of an ice cream cone increases from

$2.00 to $2.20 and the amount you buy falls from 10 to 8
cones then how many is your elasticity of demand?

Solution: The price elasticity of demand at 𝑝𝑝 = 2 would be

calculated as:

 8 − 10 
  × 100 20 percent
 10  %=
− −2 ( % )
%=
 2.20 − 2.00  10 percent
  × 100
 2.00 
 ELASTICITY- CALCULATION
Let an economic function: Y = F(X)

∆X
We have: × 100 = % change in X
X
∆Y ( X )
×100 =% change in Y
Y
Hence:
% change inY ∆Y X
EY=
,X = ⋅
% change in X ∆X Y
 ELASTICITY- CALCULATION

When the change is very small:

∆Y ( X ) X dY X
EY , X = lim ⋅ = ⋅
∆X → 0 ∆X Y dX Y
Example:
Find price elasticity of demand at P =4?
 D1 = 30 – 3P
 D2 = 20 + 6P – P2
 ELASTICITY- CALCULATION

Back to D1:
 How does price elasticity of demand vary
with P?
 It increases with P in absolute value
 |E| <1: Inelastic
 |E| = 1: Unit elasticity
 |E| > 1: Elastic
 EXERCISES

From 1 to 46 Page 231 - 232; From 103 to 106

Pages 232

From 49 to 85 Page 259; From 97 to 104 Pages

259-260.

Marginal value: Ex 1 to 9 (P285); 17,18,19 (P286);

Elasticity: Ex1 to 16 (P376)

 LESSON 2.3: EXPONENTIAL AND
LOGARITHMIC FUCNTIONS
1 Exponential Functions

2 Logarithmic Functions

PROGRAM 3 Applications: Uninhibited and

STRUCTURE
Limited Growth Models

4 Applications: Decay

5 The Derivatives of a x and log a x

 2.3.1: Exponential Functions

Def 3.1: An exponential function f is given by

x
f ( x) = a ,
Where x is any real number, a > 0, and a ≠ 1 .
Then a is called the base. x
1
, f ( x) ( 0.3) .
x x
=
Examples: f ( x) 2= , f ( x)  =
 3
Def 3.2:
n
1
 1
e = lim (1 + h ) = lim 1 +  ≈ 2.7182182
h
h →0 n →∞
 n
 2.3.1: Exponential Functions

y a x (0 < a ≠ 1)
Consider a exponential function: =
If 0 < a < 1 then the given function is decreasing
function.
If a > 1 then the given function is increasing
function.
 2.3.2: Logarithmic Functions
 Def 3.3: A logarithm is defined as follows:

=y log a x (0 < a ≠ 1) means

= ay x
 The number log a x is the power y to which we raise a to get
x.
 The number a is called the logarithmic base. We read log a x
as “the logarithm, base a, of x”.
 For logarithm base 10, log10 x is the power y such that 10 y = x
We denote y = lg x or y = log x (Common logarithm)
y
=
 For logarithm base e, y log
= e x means e x. We denote
by y = ln x . We called Natural logarithm
 2.3.2: Logarithmic Functions

=
Consider a logarithmic function: y log a x (0 < a ≠ 1)
If 0 < a < 1 then the given function is decreasing
function.
If a > 1 then the given function is increasing
function.
Graph of logarithmic functions

a>1

logax

0<a<1
 Basic properties of logarithms
Theorem 3.1: Properties of logarithms
For any positive numbers 𝑀𝑀, 𝑁𝑁, 𝑎𝑎 and 𝑏𝑏, with 𝑎𝑎, 𝑏𝑏 ≠ 1
and any real number k:
P1: log a=
( MN ) log a M + log a N
M
P2: log
= a log a M − log a N
N
P3: log a ( M k )= k ⋅ log a M
P4: log a a = 1
P5: log a 1 = 0
log b M
P6: log a M = (The change-of-base formula)
log b a
 2.3.3: Derivatives of exponential
and logarithmic functions
The derivatives of exponential functions:

( a ) =a
x ' x
⋅ ln a; ( e ) =e ; ( a ) =a
x ' x u ' u( x)
⋅ ln a ⋅ u '( x)
The derivatives of logarithmic functions:
1 1 f '( x)
( log a x ) ; ( ln x ) ; ( log a f ( x) )
' ' '
= =
x ⋅ ln a x f ( x) ⋅ ln a
 2.3.4: GROWTH RATE AND
DECAY MODEL

This part can you yourself study.

 Exercises

From 11 to 54 P319.
From 89 to 100 P321
From 92 to 105 P336
From 18 to 38 P369
 CHAPTER III: INTEGRATION

THIS CHAPTER’S GOALS: YOU WILL BE ABLE TO

Understand the meaning of integration

 Indefinite and definite integrals
 Know how to calculate integration of
basic functions
 Improper Integrals
 Some applications of integration
 THE AREA UNDER A CURVE

Examples:
 Want to find the area
of a block of land
CONSUMER SURPLUS
PRODUCER SURPLUS
 THE AREA UNDER A CURVE
Imagine that we want to
calculate the area under a
curve which can be defined as
a function f(x) where x є [a,b]
Divide the interval into n equal
subintervals, ∆x
Riemann sum:
R= [f(x1)+...+f(xn)]∆x
R is an approximation of the
area
when n -> infinity, R-> exact
the value of the area
 when h small =>
A(x0+h) – A(x0) A(x0+h)-A(x0)~hf(x0)

x0+h
~ hf(x0)

x0 x0+h

A(x): area up to x
 THE AREA AND THE DIFFERENTIATION

Thus:
A(x 0 + h) − A(x 0 )
− > f (x 0 ) as h − > 0
h

=> A’(x) = f(x)

Meaning: derivative of the area = function f(x)
We called A(x) is anti-derivative of function f(x).
 LESSON 3.1: ANTI-DERIVATIVE AND
INDEFINITE INTEGRALS

I. DEFINITIONS:
Def 3.1: An antiderivative of a function f(x) is a
function F(x) whose derivative satisfies F’(x)=f(x).
Remark:
+) If F(x) is an antiderivative of a function f(x) then
F(x) + C (where C is a constant) is also
antiderivative of a function f(x).
+) If two functions F and G have the same derivative
over an interval, then F(x)=G(x)+C.
 INDEFINITE INTEGRALS

Def 3.2: The general form F(x)+C, (where C is a

constant) of the antiderivatives of f(x) is called the
indefinite integral of f(x).

Denote: ∫ f ( x)dx= F ( x) + C ⇔ F '( x=

) f ( x)

C is called the constant of integration.

Example:

∫ ( 2 x − 3) dx = x
2
− 3x + C because ( x − 3x ) ' = 2 x − 3
2
II. BASIC INTEGRATION FORMULAS

Basic Integration formulas: (pages 391)

1. ∫ kdx
= kx + C (k is a constant)
r +1
x
2. ∫ x =
r
dx + C , provided r ≠ −1
r +1
1
3. ∫ = dx ln x + C
x
b ax
4. ∫ be =
ax
dx e +C
a
 RULES AND SOME PROPERTIES OF
INTEGRATION
Basic rules:

1. ∫ kf ( x)dx = k ∫ f ( x)dx (k is a constant)

2. ∫ [ f ( x) ± g ( x)]dx =
∫ f ( x)dx ± ∫ g ( x)dx
3. If ∫ f ( x)dx =
F ( x) + C , then ∫ f (u )du = F (u ) + C , where u =
g ( x).

( ∫ f ( x)dx ) = f ( x)
'
4.

5. ∫ f '( x=
)dx f ( x) + C
 EXAMPLE

Example: Determine the following indefinite

Examples: Evaluate and the check by
integrals anddifferentiation:
the check by differentiation:
 4 1 4 − 52 
1. ∫  x + − x  dx
 8 x 5 
 −2 x 1 
2. ∫  e + 2 dx
 x 

∫ (4 )
2
3. 3
x − x dx
III. INTEGRATION TECHNIQUES:
SUBSTITUTION
du
1. ∫ = u +C
2 u
r +1
u
2. ∫ u r=
du + C , provided r ≠ −1
r +1
1
3. ∫ = du ln u + C
u
b u
4. ∫ be =
a⋅u
du e +C
a
du 1
5. ∫ 2 =− + C
u u
 INTEGRATION BY PARTS
Integration by parts:
∫ udv= uv − ∫ vdu

Example: Determine the following indefinite integrals:

( + 3 x ) dx
2
∫
−2 x
1. e

2. ∫ x e dx
2 3x

3x + 2
3. ∫ 2x −1 + 1
dx
 INTEGRATION BY PARTS

Tips on Using Integration by Parts

1. If you have had no success using substitution,
try integration by parts.
2. Use integration by parts when an integral is of
the form ∫ 𝑓𝑓 𝑥𝑥 𝑔𝑔 𝑥𝑥 𝑑𝑑𝑑𝑑.
Match it with an integral of the form ∫ 𝑢𝑢𝑢𝑢𝑢𝑢 by
choosing a function to be 𝑢𝑢 = 𝑓𝑓(𝑥𝑥), where can
be differentiated, and the remaining factor to be
𝑑𝑑𝑑𝑑 = 𝑔𝑔 𝑥𝑥 𝑑𝑑𝑑𝑑, where 𝑔𝑔(𝑥𝑥) can be integrated.
 INTEGRATION BY PARTS

3. Find du by differentiating and v by integrating.

4. If the resulting integral is more complicated than

the original, make some other choice for u and dv.
 IV. Applications of Indefinite Integrals
Example 1:
A town’s rate of population change is modeled by
P’(t) = 34t + 16, where t is the number of years since
1990 and P’(t) is in thousands of people per year.
a) Find the population model for this town if it is
known that in 2000, the town had a population of
2500.
b) Forecast the town’s population in 2055.
 INDEFINITE INTEGRALS
Example 2:
A company determines that the marginal
cost, MC, of producing the 𝑥𝑥 𝑡𝑡𝑡 unit of a
product is given by 𝑀𝑀𝑀𝑀 𝑥𝑥 = 𝑥𝑥 3 − 2𝑥𝑥.
Find the total-cost function, 𝑇𝑇𝑇𝑇 , assuming
that 𝑀𝑀𝑀𝑀(𝑥𝑥) is in dollars and that fixed costs
are $7000.
 EXERCISES

From Ex 59 to 66, P397

From Ex 1 to 12, P407

From Ex 81 to 100, Page 445

From Ex 47 to 51, Page 453

 Basic Terminologies

 Antiderivative, Antidifferentiation

 Indefinite integral

 Constant of Integration, Integrand

 Substitution

 Integration by parts
 EXERCISES

Indefinite integral From 31 to 38, P452

 LESSON 3.2: DEFINITE INTEGRALS

We known that:

INDEFINITE INTEGRAL DOES NOT

HELP US IN THE CALCULATION OF AREA
=> DEFINTE INTEGRAL
 DEFINITE INTEGRALS
I. DEFINITIONS:
Def 3.1: Let f be any continuous function on the
interval [a, b] and F be any antiderivative of f. Then
the definite integral of f from a to b is
b
b
∫ f ( x=
a
)dx F (=
x) a F (b) − F (a ).

The numbers a and b are known as the limits of

integration.
Example: Evaluate each of the following integrals:
1 2
2x − 3
∫ ( 3x − )
3
a. x dx b. ∫ 2 dx
0 0
x − 2x − 3
 II. SOME
c
BASIC
b
PROPERTIES
c
1) For a<b<c, =
f ( x)dx ∫
a
∫ f ( x)dx + ∫ f ( x)dx
a b
2) Let f and g be continuous functions and suppose
that 𝑓𝑓 𝑥𝑥 ≥ 𝑔𝑔(𝑥𝑥) over the interval [a, b]. Then the
area of the region between the two curves, from x = a
to x = b, isb b b

∫ f ( x)dx − ∫ g ( x)dx =∫ ( f ( x) − g ( x) ) dx
a a a
b a
3) ∫ f ( x)dx = − ∫ f ( x)dx
a b

𝑏𝑏 𝑏𝑏
4) ∫𝑎𝑎 𝑘𝑘𝑘𝑘 𝑥𝑥 𝑑𝑑𝑑𝑑 = 𝑘𝑘 ∫𝑎𝑎 𝑓𝑓 𝑥𝑥 𝑑𝑑𝑑𝑑
 III. Integration Techniques
1) Substitution

2) Integration by parts
 IV. AN APPLICATION OF DEFINITE INTEGRALS

Consumer surplus:
The additional benefits enjoyed by consumers
who pay less than they are willing and able to
pay for a good.

Producer surplus:
The additional benefits enjoyed by producers who
were able to sell for a price higher than they
would have been willing to sell for a good.
IV. AN APPLICATION OF DEFINITE INTEGRALS


 DEFINITIONS
Def 3.2: Suppose that p = D(Q) describes the
demand function for a commodity. Then the
consumer surplus is defined for the equilibrium
point (𝑄𝑄0 , 𝑃𝑃0 ) as Q
0

=CS ∫ D(Q)dQ − Q P .
0
0 0

Def 3.3: Suppose that p = S(Q) describes the

supply function for a commodity. Then the
producer surplus is defined for the equilibrium
point (𝑄𝑄0 , 𝑃𝑃0 ) as Q0

PS Q0 P0 − ∫ S (Q)dQ.
=
0
 EXAMPLE
Given D( x) = ( x − 5 ) and S ( x ) = x 2 + x + 3, find each of
2

the following.
a) The equilibrium point
b) The consumer surplus at the equilibrium point
c) The producer surplus at the equilibrium point
 EXAMPLE

Example: Given
− Q + 4.5 Q −5.5
=D(Q) e=
, S (Q) e
Find each of the following:
a) The equilibrium point
b) The consumer surplus at the equilibrium
point.
c) The producer surplus at the equilibrium point.
 Basic Terminologies

Definite integral
The area
Substitution
Integration by parts
Consumer surplus
Producer surplus
 EXERCISES

From 43 to 58, Pages 422, 423

From 106 to 114, P425.

 LESSON 3.3: IMPROPER INTEGRAL
Let’s try to find the area of the region under the graph
1
of y = 2 over the interval [1,+∞ )
x
 LESSON 3.3: IMPROPER INTEGRAL

Let’s try to find the area of region under the graph

of 𝑓𝑓(𝑥𝑥) over the interval [𝑎𝑎, +∞).
Note that this region is of infinite extent.
∞
=> ∫𝑎𝑎 𝑓𝑓 𝑥𝑥 𝑑𝑑𝑑𝑑

⇒ improper Integral
𝑎𝑎 +∞ +∞
∫−∞ 𝑓𝑓 𝑥𝑥 𝑑𝑑𝑑𝑑; ∫𝑎𝑎 𝑓𝑓 𝑥𝑥 𝑑𝑑𝑑𝑑; ∫−∞ 𝑓𝑓 𝑥𝑥 𝑑𝑑𝑑𝑑
 IMPROPER INTEGRAL
I. DEFINITIONS: +∞ b

Definition 3.1: ∫
a
f ( x)dx = lim ∫ f ( x)dx
b→+∞
a

If the limit exists, then we say that the improper

integral converges, or convergent. If the limit does
not exist, then we say that the improper integral
diverges or is divergent.
Example: Determine whether the following integral
is convergent or divergent and calculate its value if
+∞
it is convergent: ∫0 5𝑒𝑒 −3𝑥𝑥 𝑑𝑑𝑑𝑑.
 IMPROPER INTEGRAL
Definition 3.2: b b

∫
−∞
f ( x)dx = lim
a →−∞ ∫ f ( x)dx
a
∞ c ∞

∫=
f ( x)dx ∫
−∞ −∞
f ( x)dx + ∫ f ( x)dx,
c
where c can be any real number.
+∞
In order ∫−∞ 𝑓𝑓 𝑥𝑥 𝑑𝑑𝑑𝑑 to converge, both integrals on
the right in the second part of the definition must
converge.
Applications of Improper Integrals (Yourself study
P495).
 II. Examples

Example 1: Determine whether the following integral

is convergent or divergent, and calculate its value if it
is convergent:
∞
3𝑥𝑥 2
a) � d𝑥𝑥
𝑥𝑥 3 +1 2
1
+∞
−𝑥𝑥 2
b) � 𝑥𝑥e d𝑥𝑥
−∞
 IMPROPER INTEGRALS

 Exercises from 1 to 28, pages 496

 Exercises 43-48 (P497)

 CHAPTER IV
FUNCTIONS OF SEVERAL VARIABLES
LESSON 4.1 SOME CONCEPTS AND PARTIAL DERIVATIVES

THIS LESSON’S GOALS: YOU WILL BE ABLE TO UNDERSTAND”

P

4.1.1 Some
Phân basic concepts
tích nội of multivariate
dung khoa học kiến
2 thTthtPhân tích nội dung khoa học
functions

2
4.1.2 Partial derivativesí 10

4.1.3
2 Hessian matrix/ concavity
Thiết kế và sử dụng E-book chương:“Động lực học chất điểm”-Vật lí 10

2
4.1.4 Total differentials
 4.1.1 SOME BASIC CONCEPTS OF
MULTIVARIATE FUNCTIONS
Definition 4.1: A function of two variables is a rule
assigns to each input ordered pair, (𝑥𝑥, 𝑦𝑦), exactly
one output number, 𝑓𝑓(𝑥𝑥, 𝑦𝑦).
Example: Let a profit function 𝑃𝑃(𝑥𝑥, 𝑦𝑦) = 4𝑥𝑥 + 6𝑦𝑦.
Find 𝑃𝑃(25,10).
Solution: 𝑃𝑃(25,10) is defined to be the value of the
function found by substituting 25 for 𝑥𝑥 and 10 for 𝑦𝑦:
𝑃𝑃(25,10) = 4 𝑥𝑥 25 + 6 𝑥𝑥 10 = 160.
This result means that by selling 25 units of the
first product and 10 of the second, the two-
product firm will make a profit of $160.
FUNCTION OF SEVERAL VARIABLES

Example:
 𝑦𝑦 = 𝑓𝑓(𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜, 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙, 𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒𝑒, . . )
 𝑌𝑌 = 𝐴𝐴𝐾𝐾 𝛼𝛼 𝐿𝐿1−𝛼𝛼
 𝑈𝑈 = 𝑈𝑈( 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓, 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐, 𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙, . . )
Function of several variables (or multivariable
function):
=> 𝑦𝑦 = 𝑓𝑓(𝑥𝑥1, . . , 𝑥𝑥𝑥𝑥) is a function of variables.
 𝑥𝑥1, . . , 𝑥𝑥𝑛𝑛: independent variables/ arguments
 𝑦𝑦: dependent variable
 4.1.2 PARTIAL DERIVATIVES
Finding partial derivatives:
Consider the function f is given by
2 3 2
z= f ( x, y )= x y + xy + 4 y + 1.
Suppose for the moment that we fix y at 3. Then
2 3 2 2
=z f ( x,3)
= x (3) + x ⋅ 3 + 4(3) +=
1 27 x + 3 x + 37.
Note that, now we have a function of only one
variable. Taking the first derivative with respect
to 𝑥𝑥, we have 54𝑥𝑥 + 3.
In general, without replacing 𝑦𝑦 with a specific
number, we can consider 𝑦𝑦 is fixed.
 4.1.2 PARTIAL DERIVATIVES
Then 𝑓𝑓 becomes a function of 𝑥𝑥 alone, and we
can calculate its derivative with respect to 𝑥𝑥.
This derivative is called the partial derivative of 𝑓𝑓
with respect to 𝑥𝑥 . Notation for this partial
derivative is:
𝜕𝜕𝑧𝑧 𝜕𝜕𝑓𝑓
𝑧𝑧𝑥𝑥′ or or
𝜕𝜕𝜕𝜕 𝜕𝜕𝜕𝜕
When we fix 𝑦𝑦 and treat it as a constant. The
expressions 𝑦𝑦 3 , 𝑦𝑦 and 𝑦𝑦 2 are then also treated
𝜕𝜕𝜕𝜕 𝜕𝜕𝑧𝑧
as constants. We have: 𝑧𝑧𝑥𝑥 = = = 2𝑥𝑥𝑦𝑦 3 + 𝑦𝑦
′
𝜕𝜕𝜕𝜕 𝜕𝜕𝜕𝜕
 4.1.2 PARTIAL DERIVATIVES
𝜕𝜕𝑓𝑓 𝜕𝜕𝑧𝑧
Similarly, we find 𝑧𝑧𝑦𝑦′ or or by fixing 𝑥𝑥 (treating
𝜕𝜕𝑦𝑦 𝜕𝜕𝑦𝑦
𝑥𝑥 as a constant) and calculating the derivative with
respect to 𝑦𝑦.

We obtain: ∂f ∂z
'
z =
y = = 3x 2 y 2 + x + 8 y
∂y ∂y
 4.1.2 PARTIAL DERIVATIVES

Definition 4.2: For 𝑧𝑧 = 𝑓𝑓(𝑥𝑥, 𝑦𝑦), the partial derivatives

with respect to 𝑥𝑥 and 𝑦𝑦 are:
∂f f ( x + h, y ) − f ( x , y )
= lim or f x'
∂x h →0 h
∂f f ( x, y + h ) − f ( x, y )
and = lim or f y'
∂y h →0 h
Example 1:
For 𝑓𝑓 𝑥𝑥, 𝑦𝑦, 𝑧𝑧 = 𝑥𝑥 3 − 3𝑥𝑥𝑦𝑦 2 + 2𝑥𝑥𝑥𝑥 − 5𝑦𝑦 2 𝑧𝑧 4 − 2𝑥𝑥 + 5𝑧𝑧
𝜕𝜕𝑓𝑓 𝜕𝜕𝑓𝑓 𝜕𝜕𝑓𝑓
Find ; and (another notations: 𝑓𝑓𝑥𝑥′ , 𝑓𝑓𝑦𝑦′ and 𝑓𝑓𝑧𝑧′ )
𝜕𝜕𝜕𝜕 𝜕𝜕𝑦𝑦 𝜕𝜕𝑧𝑧
 4.1.2 PARTIAL DERIVATIVES
𝜕𝜕𝑓𝑓
Solution: In order to find , 𝑥𝑥 is considered as the
𝜕𝜕𝜕𝜕
variable and all remain variables 𝑦𝑦 and 𝑧𝑧 are treated
as constants. From
𝑓𝑓 𝑥𝑥, 𝑦𝑦, 𝑧𝑧 = 𝑥𝑥 3 − 3𝑥𝑥𝑦𝑦 2 + 2𝑥𝑥𝑥𝑥 − 5𝑦𝑦 2 𝑧𝑧 4 − 2𝑥𝑥 + 5𝑧𝑧
𝜕𝜕𝑓𝑓
We get = 3𝑥𝑥 2 − 3𝑦𝑦 2 + 2𝑧𝑧 − 2
𝜕𝜕𝜕𝜕
Similarly, we have
∂f
−6 xy − 10 yz 4
=
∂y
∂f
2 x − 20 y 2 z 3 + 5
=
∂z
 PRACTICE

Example 2: Find the partial derivatives of the

following functions:
3 2 3 4
a ) f ( x, y, z )= x yz − 3 xy z + 2 xz − 5 z − 2 yx + 5 z + 4
3 xy 2 − 2 y
b) w = e
 3x − 2 y 
c) w = ln  
 4 y − 5x 
d ) w = e3 x −5 y ⋅ (2 x 2 + 3 xy )
 CHAIN RULE
Theorem 4.1: If 𝑥𝑥 𝑡𝑡 = (𝑥𝑥1 𝑡𝑡 , 𝑥𝑥2 𝑡𝑡 , … , 𝑥𝑥𝑛𝑛 𝑡𝑡 ) is a
𝐶𝐶 1 function on a ball about 𝑡𝑡0 and the function
𝑦𝑦 = 𝑓𝑓(𝑥𝑥1, . . , 𝑥𝑥𝑛𝑛 ) is a 𝐶𝐶 1 function on a ball about
𝑥𝑥(𝑡𝑡0 ), then 𝑦𝑦 = 𝑔𝑔(𝑡𝑡) = 𝑓𝑓(𝑥𝑥1(𝑡𝑡), 𝑥𝑥2(𝑡𝑡), … , 𝑥𝑥𝑛𝑛 (𝑡𝑡)) is
a 𝐶𝐶 1 function at 𝑡𝑡0 and its derivative is defined by
the formula:

dy ∂y dx1 (t0 ) ∂y dx2 (t0 ) ∂y dxn (t0 )

= (t0 ) ( x(t0 )) ⋅ + ( x(t0 )) ⋅ + ⋅⋅⋅ + ( x(t0 )) ⋅
dt ∂x1 dt ∂x2 dt ∂xn dt
Example 1:
 𝑇𝑇𝑇𝑇 = 𝑝𝑝 ⋅ 𝑄𝑄(𝑝𝑝)
dTR ∂TR dp ∂TR dQ
= ⋅ + ⋅
dp ∂p dp ∂Q dp
This result can be extended for the function
𝑦𝑦 = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 , … , 𝑥𝑥𝑛𝑛 ) where 𝑥𝑥𝑖𝑖 = 𝑔𝑔 𝑡𝑡1 , … , 𝑡𝑡𝑚𝑚 , ∀𝑖𝑖 = 1, 𝑛𝑛.
We have:

∂f ∂f ∂x1 ∂f ∂x2 ∂f ∂xn

= ⋅ + ⋅ + ⋅⋅⋅ + ⋅ ∀
=i 1, n.
∂ti ∂x1 ∂ti ∂x2 ∂ti ∂xn ∂ti
 CHAIN RULE
Example 2:
Consider the Cobb-Douglas production function
𝑄𝑄 = 4𝐾𝐾 0.75 𝐿𝐿0.25 . Suppose that the inputs 𝐾𝐾 and 𝐿𝐿
vary with time 𝑡𝑡 and the interest rate 𝑟𝑟, via the
expressions:
10t 2
K (t , =
r) r ) 6t 2 + 250r
and L(t , =
r
Evaluate the rate of change of output 𝑄𝑄 with
respect to 𝑡𝑡 when 𝑡𝑡 = 10 and 𝑟𝑟 = 0.1.
Solution: First, note that
∂Q ∂Q ∂K ∂Q ∂L
= ⋅ + ⋅
∂t ∂K ∂t ∂L ∂t
= ( 3K −0.25 L0.25 ) ⋅ ( 20t ⋅ r −1 ) + ( K 0.75 L−0.75 ) ⋅ (12t ) .

Since, 𝐾𝐾(10, 0.1) = 10,000 and 𝐿𝐿(10, 0.1) = 625, at

𝑡𝑡 = 10 and 𝑟𝑟 = 0.1, the above expression equals

( 310,000 −0.25
6250.25 ) ⋅ ( 20 ⋅10 ⋅ 0.1−1 ) + (10,0000.75625−0.75 ) ⋅ (12 ⋅10 ) =
3,960.
 4.1.3. HIGHER-ORDER PARTIAL
DERIVATIVES
Remark: Consider the function 𝑧𝑧 = 𝑓𝑓(𝑥𝑥, 𝑦𝑦), as you
𝜕𝜕𝜕𝜕 𝜕𝜕𝑓𝑓
known and are functions of two variables.
𝜕𝜕𝜕𝜕 𝜕𝜕𝑦𝑦

𝜕𝜕𝜕𝜕
We continue find the first partial derivatives of
𝜕𝜕𝜕𝜕
𝜕𝜕𝜕𝜕
and with respect to 𝑥𝑥 and 𝑦𝑦 . Then will be
𝜕𝜕𝜕𝜕
second-order partial derivatives of the original
function 𝑧𝑧 = 𝑓𝑓(𝑥𝑥, 𝑦𝑦). Its notations are as follows:
∂2 f ∂2 f ∂2 f ∂2 f
2
, , and
∂x ∂x∂y ∂y∂x ∂y 2
 SECOND-ORDER PARTIAL DERIVATIVES
Definition 4.3: Second-order partial derivatives
∂2 f ∂  ∂f 
1)
= 2
=   f xx'' , Take the partial with respect to x,
∂x ∂x  ∂x 
and then with respect to x again.
∂2 f ∂  ∂f 
2)
= =   f xy'' Take the partial with respect to x,
∂y∂x ∂y  ∂x 
and then with respect to y.
∂2 f ∂  ∂f 
3)
= =   f yx'' Take the partial with respect to y,
∂x∂y ∂x  ∂y 
and then with respect to x.
∂2 f ∂  ∂f 
4)
= 2
=   f yy'' Take the partial with respect to y,
∂y ∂y  ∂y 
and then with respect to y again.
4.1.4 HESSIAN MATRIX AND CONCATIVITY

Second order partial derivatives:

 f (x, y)
∂ 2
∂ 2f (x, y) 
 ∂x∂x ∂y∂x 
 
 ∂ 2f (x, y) ∂ f (x, y) 
2

 ∂x∂y ∂y∂y 


=> Hessian matrix

 HESSIAN MATRIX AND CONCATIVITY

Theorem 4.2:
 A function 𝑓𝑓(𝑥𝑥, 𝑦𝑦) is concave down in (𝑥𝑥, 𝑦𝑦) if its
Hessian matrix is negative definite
 A function 𝑓𝑓(𝑥𝑥, 𝑦𝑦) is concave up in (𝑥𝑥, 𝑦𝑦) if its
Hessian matrix is positive definite.
 4.1.5 TOTAL DIFFERENTIAL
Assume that the function 𝑦𝑦 = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 , … , 𝑥𝑥𝑛𝑛 ) has
partial derivatives and all its partial derivatives are
continuous. Then
Definition 3.4: The first-order total differential for the
function 𝑦𝑦 = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 , … , 𝑥𝑥𝑛𝑛 ) is defined by
dy = f x'1 ⋅ dx1 + f x'2 ⋅ dx2 + ... + f x'n ⋅ dxn .
Example: Let a production function
= y f= ( x1 , x2 , x3 ) Ax1α x2β x3γ , α , β , γ > 0
Total differential of the production function is given by
A ⋅ α ⋅ x1α −1 x2β x3γ ⋅ dx1 + A ⋅ β ⋅ x1α x2β −1 x3γ ⋅ dx2 + A ⋅ γ ⋅ x1α x2β x3γ −1 ⋅ dx3 .
dy =
 TOTAL DIFFERENTIAL CONTINUE
Definition 4.5: The second-order total differential for
function 𝑦𝑦 = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 ) is
𝑑𝑑 2 𝑦𝑦 = 𝑓𝑓𝑥𝑥′′1 𝑥𝑥1 ⋅ 𝑑𝑑𝑥𝑥12 + 2𝑓𝑓𝑥𝑥′′1 𝑥𝑥2 ⋅ 𝑑𝑑𝑥𝑥1 𝑑𝑑𝑥𝑥2 + 𝑓𝑓𝑥𝑥′′2 𝑥𝑥2 ⋅ 𝑑𝑑𝑥𝑥22
Theorem 4.3: If the function y = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 ) defined on
ℝ2 is twice continuously differentiable and 𝑑𝑑 2 𝑦𝑦 > 0
whenever at least one of 𝑑𝑑𝑥𝑥1 or 𝑑𝑑𝑥𝑥2 is nonzero, then
y = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 ) is strictly convex function.
Theorem 4.4: If the function y = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 ) defined on is
twice continuously differentiable and 𝑑𝑑 2 𝑦𝑦 > 0 whenever
at least one of 𝑑𝑑𝑥𝑥1 or 𝑑𝑑𝑥𝑥2 is nonzero, then y = 𝑓𝑓(𝑥𝑥1 , 𝑥𝑥2 )
is strictly concave function.
 Basic Terminologies

Functions of several variables

(Multivariate functions)
Domain and Range
Partial derivatives
Higher-order partial derivatives
Hessian matrix
Total differential
LESSON 4.2 MAXIMUM-MINIMUM PROBLEMS
4.2.1 Def 1: Let a function of two variables: 𝑧𝑧 = 𝑓𝑓(𝑥𝑥, 𝑦𝑦)
1) The given function has a relative maximum at (a, b) if
𝑓𝑓 𝑥𝑥, 𝑦𝑦 ≤ 𝑓𝑓(𝑎𝑎, 𝑏𝑏) for all points in a certain rectangular region
containing (a, b);
2) The function has a relative minimum at (a, b) if
𝑓𝑓 𝑥𝑥, 𝑦𝑦 ≥ 𝑓𝑓(𝑎𝑎, 𝑏𝑏) for all points in a certain rectangular region
containing (a, b).
4.2.2 Problems
Problem: Find the relative maximum and minimum of
the function 𝒛𝒛 = 𝒇𝒇(𝒙𝒙, 𝒚𝒚).
To find the relative maximum and minimum value of f:
1. Find 𝑓𝑓𝑥𝑥′ , 𝑓𝑓𝑦𝑦′ , 𝑓𝑓𝑥𝑥𝑥𝑥
′′ ′′
, 𝑓𝑓𝑥𝑥𝑥𝑥 ′′
, 𝑓𝑓𝑦𝑦𝑦𝑦 ′′
, 𝑓𝑓𝑦𝑦𝑦𝑦
 D-TEST
2. Solve the system of equations 𝑓𝑓𝑥𝑥′ = 0, 𝑓𝑓𝑦𝑦′ = 0. Let
(a, b) represents a solution.
′′ ′′
𝑓𝑓𝑥𝑥𝑥𝑥 (𝑎𝑎, 𝑏𝑏) 𝑓𝑓𝑥𝑥𝑦𝑦 (𝑎𝑎, 𝑏𝑏)
3. Evaluate D, where 𝐷𝐷 = ′′ ′′
𝑓𝑓𝑦𝑦𝑥𝑥 (𝑎𝑎, 𝑏𝑏) 𝑓𝑓𝑦𝑦𝑦𝑦 (𝑎𝑎, 𝑏𝑏)
′′ ′′ ′′ ′′
𝐷𝐷 = 𝑓𝑓𝑥𝑥𝑥𝑥 𝑎𝑎, 𝑏𝑏 ⋅ 𝑓𝑓𝑦𝑦𝑦𝑦 𝑎𝑎, 𝑏𝑏 − 𝑓𝑓𝑥𝑥𝑦𝑦 𝑎𝑎, 𝑏𝑏 ⋅ 𝑓𝑓𝑦𝑦𝑥𝑥 𝑎𝑎, 𝑏𝑏
4. Then:
′′
a) f has a maximum at (a, b) if D > 0 and 𝑓𝑓𝑥𝑥𝑥𝑥 𝑎𝑎, 𝑏𝑏 < 0
′′
b) f has a minimum at (a, b) if D > 0 and 𝑓𝑓𝑥𝑥𝑥𝑥 𝑎𝑎, 𝑏𝑏 > 0
c) f has neither a maximum nor a minimum at (a, b) if
D< 0. The function has a saddle point at (a, b).
d) This test is not application if D = 0.
 MAXIMUM-MINIMUM PROBLEMS

Example: Find the relative maximum and minimum

values of the following functions:
a) 𝑢𝑢 = 𝑥𝑥 3 + 4𝑦𝑦 4 − 5𝑥𝑥 2 + 7𝑥𝑥 + 16𝑦𝑦 − 5
b) 𝑢𝑢 = −4𝑥𝑥 2 − 8𝑥𝑥𝑥𝑥 − 6𝑦𝑦 3 + 10𝑦𝑦 + 3
 Basic Terminologies

Relative maximum
Relative minimum
Critical points
Saddle points
LESSON 4.3 CONSTRAINED OPTIMIZATION
PROBLEMS
We begin by discussing some important economics
examples of constrained optimization problems.
Example 1: (Utility Maximization Problem)
The consumer wants to 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑈𝑈 𝑥𝑥1 , 𝑥𝑥2 , … , 𝑥𝑥𝑛𝑛
𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑡𝑡𝑡𝑡 𝑝𝑝1 𝑥𝑥1 + 𝑝𝑝2 𝑥𝑥2 + ⋯ + p𝑛𝑛 𝑥𝑥𝑛𝑛 ≤ 𝐼𝐼,
𝑥𝑥1 ≥ 0 , 𝑥𝑥2 ≥ 0, … , 𝑥𝑥𝑛𝑛 ≥ 0.
𝑥𝑥𝑖𝑖 represents the amount of commodity 𝑖𝑖.
𝑈𝑈(𝑥𝑥1 , 𝑥𝑥2 , … , 𝑥𝑥𝑛𝑛 ): measures the individual’s level of
utility or satisfaction.
𝑝𝑝1 , 𝑝𝑝2 , … , 𝑝𝑝𝑛𝑛 denote the prices of commodities and I
denote the individual’s income.
LESSON 4.3 CONSTRAINED OPTIMIZATION PROBLEMS
Example 2: (Profit Maximization of a Competitive Firm)
Suppose that a firm in a competitive industry uses n inputs to
manufacture its product.
Let y denote the amount of its output,
x1 , x2 ,..., xn denote the amount of its input
y = f ( x1 , x2 ,..., xn ) denote the firm's production function
p : the unit price of output
w i : denote the cost of input i
The firm’s goals is to choose (𝑥𝑥1 , 𝑥𝑥2 , … , 𝑥𝑥𝑛𝑛 ) to maximize its profit:
n
) pf ( x1 , x2 ,..., xn ) − ∑ w i xi
Π ( x1 , x2 ,..., xn=
i =1
LESSON 4.3 CONSTRAINED OPTIMIZATION PROBLEMS

Under the constraints

n
pf ( x1 , x2 ,..., xn ) − ∑ w i xi ≥ 0,
i =1

g1 ( x) ≤ b1 ,..., g k ( x) ≤ bk
x1 ≥ 0,..., xn ≥ 0 where x =
( x1 , x2 ,..., xn ).
LESSON 4.3 CONSTRAINED OPTIMIZATION PROBLEMS
Now we discuss the simplest constrained maximization
problem, that of maximizing a function 𝑧𝑧 = 𝑓𝑓(𝑥𝑥, 𝑦𝑦) of two
variables subject to a single equality constraint 𝑔𝑔 𝑥𝑥, 𝑦𝑦 = 𝑏𝑏.
The Method of Lagrange Multipliers
To find a maximum or minimum values of a function 𝑧𝑧 = 𝑓𝑓(𝑥𝑥, 𝑦𝑦)
subject to the constraint 𝑔𝑔 𝑥𝑥, 𝑦𝑦 = 𝑏𝑏 (∗) .
1. Form a new function (Lagrange function)
𝐿𝐿 = 𝑓𝑓 𝑥𝑥, 𝑦𝑦 + 𝜆𝜆[𝑏𝑏 − 𝑔𝑔(𝑥𝑥, 𝑦𝑦)],
the variable 𝜆𝜆 is called a Lagrange multiplier.
2. The necessary condition:
+ Find the first partial derivatives
𝐿𝐿′𝑥𝑥 = 𝑓𝑓𝑥𝑥′ − 𝜆𝜆𝑔𝑔𝑥𝑥′ ; 𝐿𝐿′𝑥𝑥 = 𝑓𝑓𝑦𝑦′ − 𝜆𝜆𝑔𝑔𝑦𝑦′ ; 𝐿𝐿′𝜆𝜆 = 𝑏𝑏 − 𝑔𝑔(𝑥𝑥, 𝑦𝑦);
LESSON 4.3 CONSTRAINED OPTIMIZATION PROBLEMS

+ Solve the system

 L'x =f x' − λ g x' =0 (1)
 '
 L=y f y
'
− λ g '
y =0 (2)
 L' =
 λ b − g ( x, y ) = 0 (3)
Let (𝜆𝜆0 , 𝑥𝑥0 , 𝑦𝑦0 ) represent a solution of this system. Then we
normally must determine whether (𝑥𝑥0 , 𝑦𝑦0 ) yields a maximum or
minimum of the f.
3. The sufficient condition of problem:
+ Find second partial derivatives of the Lagrange function:

L''λλ ==
0; L''λ x L''xλ =
− g x' ; L''λ y =
L''yλ =
− g 'y ; L''xx ; L''xy ; L''yx ; L''yy ;
LESSON 4.3 CONSTRAINED OPTIMIZATION PROBLEMS
+ Form Hessian matrix
 0 − g x' − g 'y 
 
H =  − g x' L''xx L''xy 
 − g 'y L''yx L''yy 


And evaluate determinant of Hessian matrix |𝐻𝐻|.

+ Substitute (𝜆𝜆0 , 𝑥𝑥0 , 𝑦𝑦0 ) into |𝐻𝐻| we obtained 𝐷𝐷 = 𝐻𝐻(𝜆𝜆0 , 𝑥𝑥0 , 𝑦𝑦0 ) .
4. Conclusion:
+ If 𝐷𝐷 > 0, then the given function subject to the constraint (∗)
has maximum at (𝑥𝑥0 , 𝑦𝑦0 ).
+ If 𝐷𝐷 < 0, then the given function subject to the constraint (∗)
has minimum at (𝑥𝑥0 , 𝑦𝑦0 ).
LESSON 4.3 CONSTRAINED OPTIMIZATION PROBLEMS

Example 1: Find the maximum and minimum values of

the following function: =
z 2 x − 3 y (1)

Subject to the constraint x2 + y 2 =

13. (*)
Example 2: Find the maximum and minimum values of the
2 2
following function: z = 6 xy − 4 x − 3 y (1)

Subject to the constraint x + 3 y =

19 (*).
 Basic Terminologies

Constrained optimization
Constraint
Lagrange Multiplier
Lagrange Function
 Constrained optimization problems

 Exercises from 5 to 8, page 586

 Exercises 32,33 and 40 (Pages 587-588)

 I wish all our class
members will receive
high results in the final
exam!