Sec 7.

1
Functions of Several Variables

A function f of two independent variables x and y is a rule

that assigns to each ordered pair (x,y) in a given set D the
domain of f exactly one real number f(x,y).

The domain of f is the set of all possible inputs and the

range is the set of corresponding outputs.
2 5y
Suppose f(x,y) = 3 x + x− y

Domain: All (x,y) such that x ≠y

Evaluate f(-1,2) :
When x = 1, y = -2,
2 5y ( 5 ) (−2 ) 10 −1
f(x,y) = 3 x + x− y
=3+
1+2
=3− =
3 3

2. Suppose f(x,y) = x e +lnx . y

a. Find the domain of f.
Since lnx is defined only if x>0, the domain of f is all
ordered pairs (x,y) for which x>0.

b. Compute f ( e , ln 2 ) . 2

f ( x , y )=x e y +lnx sp f ( e 2 , ln 2 ) =e 2 e ln 2 +ln e 2=2 e2 +2=16.78≈.

Ex. A sports store carries two kinds of rackets, brand 1

and brand 2.
The consumer demand of the two brands does not
depend on its own price but also on the price of the
competing brand. Sales figures indicate that if Brand 1
sells for x dollars per racket and brand 2 for y dollars per
bracket, the demand for brand 1 will be
D 1=300−20 x+30 y rackets per year .

The demand for Brand 32 rackets will be

D 2=200+ 40 x−10 y rackets per year .

Express the store’s total annual revenue from the sale of

these rackets as a function of price.
R=No.of brand 1 rackets sold(price per brand 1 racket)+
No.of Brand 2 rackets sold(Price per Brand 2 racket)
¿ ( 300−20 x +30 y ) x + ( 200+ 40 x−10 y ) y

R=¿

Cobb Douglas Production Function

Output Q at a certain factory is regarded as a function of the
amount K of capital investment and the size L of the labor force
given by
Q ( K , L ) = A K α Lβ

Where α,β> 0 and α + β=1

Suppose that at a certain factory, output is given by

1/3 2/ 3
Q ( K , L )=60 K L units where K is Capital investment measured in

units of $1000 and L is the size of the labor force in worker

hours.
a. Compute the output if capital investment is $512000 and
1000 worker hours of labor are used each day.

Here K = 512 and L = 1000 so

1 2
1/3 2/ 3 3 3
Q ( K , L )=60 K L =60 ( 512 ) ( 1000 ) =60 ( 8 )( 1000 ) =48000 units .

b. Show that output in (a) will double if both K and L are

doubled.
 1 2
1/3 2/ 3 3 3
Q ( K , L )=60 K L =60 ( 2(512) ) ( 2000 ) =96000 units

Level Curves
If the plane z = c intersects the surface z=f(x,y) the result is a
curve in space.The set of points (x,y) in the xy- plane that satisfy
f(x,y) = C is called a level curve of f at C.

Isoquants

If the output Q(x,y) is determined by two inputs x and y hours

of labor and capital respectively, then the level curve Q(x,y) = C
is called an isoquant. Along this curve, different combinations
of x and y will give us the same output C !!!

Indifference Curves
Different combinations of x and y give the same level of
consumer satisfaction ; utility U(x,y) = C. A level curve of the
utility function is called an indifference curve.
Ex: Suppose the utility derived by a consumer from x units of
one commodity and y units of another commodity is given by
3
the utility function U ( x , y )=x y . If the consumer currently owns 16
2

units of the first commodity and 20 units of the second, find the
consumer’s current level of utility. Show the indifference
curves.

When x = 16 and y = 20 we get

3 3
2
U ( x , y )=x 2 y=( 16 ) ( 20 )=1280

The corresponding indifference curve is

3
1280=x 2 y

Graph of a function of two independent variables is a surface.

Software can be used to sketch these graphs.

Graph of f ( x , y )=x 2 + y 2
Graph of f ( x , y )=√ x2 + y 2

Qs 27.Using x skilled workers and y unskilled workers a

2
manufacturer can produce Q ( x , y )=10 x y units per day. Currently
there are 20 skilled workers and 40 unskilled workers on the
job.
a. How many units are currently produced each day?
2
X = 20, y = 40 so Q ( x , y )=10 x y =10 ( 20 )2 ( 40 )=160000

b. By how much will the daily production rise if 1 more skilled

worker is added to the current workforce?
X = 21, y=40; Q ( x , y )=10 ( 21 )2 ( 40 )=176400=16400 units

Increase in production = 176400 - 160000=16400

c. By how much will the daily production rise if 1 more
unskilled worker is added to the current workforce?
2
X = 20, y = 41, Q ( x , y )=10 ( 20 ) ( 41 )=¿ 164000

Increase in production = 164000-160000=4000

d. By how much will the daily production rise if 1 more skilled
worker and 1 more unskilled worker is added to the
current workforce?
X = 21, y = 41, Q ( x , y )=10 ( 21 ) ( 41 )=¿449610
2

Increase=449610-160000=20810