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Chapter 2
Le Ngoc Anh Khoa, MS.c
Non-Linear Equation
Outlines
● Quadratic functions
● Revenue, cost and profit
● Indicies and logarithms
● The exponential and natural logarithm functions
2.1 Quadratic Function
• General form : y = f(x) = ax2 + bx + c
(a # 0)
• ∆ = b2 − 4ac
∆ > 0 : equation has 2 solutions
∆ = 0 : equation has 1 solutions
∆ < 0 : no solutions
• Solution where y = 0:
−𝑏 ± 𝑏2 −4𝑎𝑐
x=
2𝑎
Practice example
Result:
a)
b)
c)
d)
Application
Application
Sketch the graph of quadratic function:
y = f(x) = ax2 + bx + c
Step 1 Step 2
Determine the basic shape. The Determine the y intercept. This is
graph has a U shape if a > 0, and obtained by substituting x = 0 into
an inverted U shape if a < 0. the function, which gives y = c.
Step 3
Determine the x intercepts (if any). These
are obtained by solving the quadratic
equation: ax^2 + bx + c = 0
U shape Inverted U shape
2.2 Revenue, Cost and Profit
Cost function
• Cost (TC) is the total cost of producing output.
The cost function consists of two different types of cost:
- Variable costs
- Fixed costs.
• Fixed costs (FC) normally do not vary with output. In general these
costs must be incurred whether the items are produced or not.
Formula: TC = FC + (VC)Q
Average cost: AC = TC/Q
Revenue
Revenue (TR) is the total payment
received from selling a good or
performing a service.
Formula : TR = PQ
Profit (𝛑)
Formula : 𝜋 = TR - TC
Example
If fixed costs are 30, variable costs per
unit are Q + 3, and the demand
function is
P + 2Q = 50
Show that the associated profit
function is
π = −3Q2 + 47Q − 30.
Example
If fixed costs are 30, variable costs per
unit are Q + 3, and the demand
function is
P + 2Q = 50
Show that the associated profit
function is
π = −3Q2 + 47Q − 30.
Find the break-even values of Q and
deduce the maximum profit.
2.3 Indicies and logarithms
2.3 Indicies and logarithms
2.3 Indicies and logarithms
2.3 Indicies and logarithms
Practice exam[;e
Result:
a)
b)
c)
d)
e)
2.3 Indicies and logarithms