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Example
1. The total cost in dollars of producing x pizza is :
C(x) = 300 +100x − 2x2 ,0 ≤ x ≤10
(a) Find the total cost when x = 2 and x=3.
(b) Find the average cost from x =2 to x=3.
(c) Find the average cost from x = 2 to x = 2+h.

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By definition (classical )
 We have:

df f ( x  h)  f ( x )
 f '( x)  lim
dx h 0 h

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 In problem below, use the definition to find first
derivative of the following.
 a) f(x) = 4x – 1
 b) y = x2 + 4x – 8
 c) p = -5q

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Finding the tangent line to the
curve y =f(x) at point (a,b)
 1. calculate f(a) and f(a+h).
 2. Calculate the slope:

f ( a  h)  f ( a )
m  lim
h 0 h
3. If the limit exist, find the tangent line as
y = b + m(x-a).

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Example
 Find the tangent line for y = 1/x at point (a, 1/a)

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Application
1. The rock fell . Estimate the rock speed
at instant t=1.

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Why Derivatives are Useful
 The rate of change is a useful thing to know.
 The derivative of cost is Marginal Cost
 They tell when a function is increasing or decreasing.
 f’(x) > 0: f(x) is increasing
 f’(x) < 0: f(x) is decreasing
 Most useful of all: Optimization!

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Some Rules for finding the first
derivatives
 Most basic rule: axn = naxn-1
 Example: f(x) = 3x2, f’(x) = 6x

 Write radicals/rational functions using

fractional/negative exponents:
 f(x) = 1/x = x-1 f’(x) = -x-2 = -1/x2

1 1/ 2 1
f ( x)  x  x 1/ 2 f ' ( x)  x 
2 2 x
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Sums and Differences
 General Rule:
 f(x) = g(x) + h(x) f’(x) = g’(x) + h’(x)
 Examples:
 f(x) = 2x2 + 3x f’(x) = 4x + 3

f ( x)  3 x  3x f ' ( x) 

5 2 x3 f ' ( x) 
f ( x)  2  4 
3x x 9
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Products
 General Rule
 f(x) = g(x)h(x) f’(x) = g’(x)h(x) + g(x)h’(x)
 Examples:
 f(x) = (2x - 9)(x2 + 6) f’(x) =

 f(x) = 3x2(2x2 - 3x + 1) f’(x) =

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Quotients
 General Rule:
h( x ) g ' ( x )  h' ( x ) g ( x )
 f(x) = g(x)/h(x) f ' ( x ) 
 Example: h( x) 2

3x  5
f ( x)  2 f ' ( x) 
 
3 x 2  3  3x  52 x
x 3 x 2

3
2

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Composite function &Chain Rule
 Chain rule:
 f(x) = g(h(x))
 f’(x) = g’(h(x)) h’(x)

 Example:
f ( x)  1  x  1  x
2

2 1/ 2

f ' ( x)  1  x  2 x
1 2 1 / 2

2
Derivative of
Derivative of sqrt. thing inside sqrt.
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Exponentials and Logs
 The exponential function is its own derivative.
 f(x) = ex
 f’(x) = ex
 If f(x) = loge(x) (sometimes ln(x))
 f’(x) = 1/x

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Trigonometric Function
 The trigonometric function, sin(x), cos(x), tan(x) has
own derivative.
 f(x) = sin(x) , f’(x) = cos (x)

 f(x) = cos(x) , f’(x) = - sin(x)

 f(x) = tan(x), f’(x) = sec2(x)

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Exercises

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What to Know
 Know what derivatives mean.
 Know how to take the derivative of a polynomial.
 Know the chain rule.

 Look up everything else.

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Economics: Marginal Cost
 Let C(x) be the total cost of producing x units.
 The marginal cost is C’(x).
 Marginal cost approximates the cost of producing one
more unit.

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Example: Marginal Cost
 Total cost of producing x sailboats:
C(x) = 500 + 24x - 0.2x2
 Find a formula for marginal cost.
 What is marginal cost if you currently produce 30
sailboats.
 What is the exact cost of producing the 31st sailboat?

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Marginal Cost: The Picture
Marginal cost is only
an approximation to but it’s a pretty good
the cost of the next approximation.
unit…
1300

1200 1060

1100
1055
1000

900 1050

800
1045
700

600 1040
500
0 10 20 30 40 50 30 30.5 31 31.5
X X
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Example: Microeconomics
 Marginal Cost:
 Extra cost associated to produce one more item.
 Marginal Revenue:
 Extra revenue from producing one more item.
 General Profit Maximization Rule:
 Marginal Cost = Marginal Revenue
 Why?

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Marginal Revenue = Marg. Cost
 Let x represent the amount of output you produce and
notice profit = revenue - cost.
 P(x) = R(x) - C(x).
 To find optimal x, take derivative of profit and set to 0.
 P’(x) = R’(x) - C’(x) = 0
 R’(x) = C’(x)
 Marginal Revenue = Marginal Cost

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Optimization
 To get to a minimum:
11.5
 If f(x) is decreasing
move to the right. 9.0
• If f(x) is increasing
move to the left 6.5

• If f(x) is neither 4.0

increasing nor
decreasing, i.e. f’(x)=0, 1.5
you’re there!
-1.0
-4 -3 -2 -1 0 1 2 3 4
x
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Optimization
 To maximize or 11.5
minimize a function
9.0
set its derivative to
zero. 6.5
f’(x) = 0
 Same criteria for
4.0
max’s and min’s.
 How do you know 1.5

what you have? -1.0

-4 -3 -2 -1 0 1 2 3 4
x
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Second Derivatives
 The second derivative is the “rate of change” of the rate
of change.
 f’’(x) > 0 means
 f’(x) is increasing
 f(x) is bending up/holding water/concave up
 Think of f’’(x) as the function’s attitude

 negative:  concave down (things only get worse)

 positive:  concave up (things only get better)

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Example
f ( x)  2 x3  3x 2  12 x  5

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 Find x to make f(x) a
10
minimum/maximum.
0

-10

-20

-30

-40
-2 -1 0 1 2 3 4
X
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Example: Maximize Profit
 Manufacturing x TV sets per month costs
 C(x) = 72,000 + 60x
 The number of TV sets demanded each month
depends on price. The relationship is
 x for( 0 < x < 6000)
p ( x)  200 
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 How many TV sets should you produce?

 How should you price them?

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Example: Don’t Fence Me In
 A lumber store owner
has 400 feet of 100 feet
fencing material to
build a rectangular
fence.
store
 He wants to use a wall
of his 100 foot store as 400
part of the fence. feet
 What is the largest
area he can fence in?

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