Matrix and systems of equations: Trường Đại Học Tôn Đức Thắng Khoa Toán - Thống Kê Bộ Môn Toán Kinh Tế

TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG
KHOA TOÁN – THỐNG KÊ

BỘ MÔN TOÁN KINH TẾ
Chapter 1: Matrix and systems of equations

(Ma trận và hệ phương trình)
11/26/2021 C01120-Chapter 1: Matrix and systems of equations 1

Matrix and matrix operators
1.1
(Ma trận và các phép toán trên ma trận)

Objectives
• To organize and interpret data stored in matrices
• To add and subtract matrices
• To find the transpose of a matrix
• To multiply a matrix by a scalar (real number)
• To multiply two matrices

Matrices
Matrices are classified in terms of the numbers of
rows and columns they have.
Matrix M has three rows and four columns, so we
say this is a 3  4 matrix.

Matrices
The matrix
has m rows and n columns, so it is an m  n matrix.

When we designate A as an m  n matrix, we are
indicating the size of the matrix.

Matrices
Two matrices are said to have the same order (be the
same size) if they have the same number of rows and
the same number of columns.
For example,
and
do not have the same order.

C is a 2  3 matrix and D is a 3  2 matrix.

Matrices
 The numbers in a matrix are called its entries or
elements (các phần tử).
 Thus a23 represents the entry in the second row
and the third column, and we refer to it as the
“two-three entry.”
 If the number of rows equals the number of
columns, we say the matrix is a square matrix
(ma trận vuông).

Matrices
Matrix B below is a 3  3 square matrix.
A matrix with one row, such as [9 5] or [3 2 1 6], is

called a row matrix (ma trận dòng), and a matrix
with one column, such as
is called a column matrix (ma trận cột).

Matrices
Row and column matrices are also called vectors.
Any matrix in which every entry is zero is called a
zero matrix (ma trận không); examples include
and
We define two matrices to be equal if they are of

the same order and if each entry in one equals the
corresponding entry in the other.

Matrices
When the columns and rows of matrix A

are interchanged to create a matrix B, and
vice versa, we say that A and B are
transposes (chuyển vị) of each other and
write
AT = B and BT = A.

Example 2 – Matrices
(a) Which element of
is represented by a32?
(b) Is A a square matrix?
(c) Find the transpose of matrix A.
(d) Does A = B?

Addition and Subtraction of Matrices
(Phép cộng và phép trừ ma trận)
If two matrices have the same number of rows and

columns, we can add the matrices by adding their
corresponding entries.

Sum of Two Matrices (tổng các ma trận)

 The commutative law of addition for matrices:

A + B = B + A.
 The matrix –B is called the negative of the matrix

B, and each element of –B is the negative of the
corresponding element of B.

For example, if
then
We can define the difference A – B (when A and B

have the same order) by
A – B = A + (–B),
or by subtracting corresponding elements.

Example 5 – Balance of Trade
Table 3.2 summarizes the actual and projected U.S. dollar value
(in billions) of U.S. exports and imports of pipeline natural gas
with Canada and Mexico and of liquefied natural gas with other
countries for selected years.
Table 3.2
Write the matrix that describes the balance of trade in
natural gas with the various countries in the selected years.

Example 5 – Solution
We represent the exports (xuất khẩu) as matrix A and
the imports (nhập khẩu) as matrix B.
The balance of trade we seek is given by the

difference A B, as follows.

Example 5 – Solution cont’d
Any negative entry indicates an unfavorable balance of

trade for the United States with the country in the year
corresponding to that entry.
Thus, the 1–2 entry indicates a 2020 unfavorable balance
of natural gas trade with Canada of $6.29 billion.
Similarly, the 2–1 entry shows a 2015 favorable balance
of $2.79 billion with Mexico.
Scalar Multiplication
(Phép nhân ma trận với 1 số)

Scalar Multiplication
We can define scalar multiplication as follows.

Example 6 – Scalar Multiplication
If
find 5A and –2A.

Multiplication of Matrices
(phép nhân các ma trận)

Many computations that occur in business and
manufacturing operations can be expressed and
analyzed by using matrix multiplication.
For example, suppose one store of an electronics retailer
has 30 plasma TVs, 20 LCD TVs, and 10 home theater
systems in its inventory.
If the value of each plasma TV is $800, that of each LCD
TV is $750, and that of each home theater system is
$500, then the value of this inventory is

If we write the value of each of the items in the
row matrix, A, and the number of each of the items
in the column matrix, B, then the value of this
inventory may be represented by
This useful way of operating with a row matrix and

a column matrix is called the product AB.

In general, we can multiply a row matrix A times a
column matrix B if A and B have the same number
of elements.
The product AB is then

Suppose the retailer has a second store with 40
plasma TVs, 25 LCD TVs, and 5 home theater systems.
We can use matrix C to represent the inventories of
the two stores.
If the values of the items are $800, $750, and $500,

respectively, we have already seen that the value of
the inventory of store I is $44,000.
The value of the inventory of store II is
Because the value of the inventory of store I can be

found by multiplying the row matrix A times the first
column of matrix C, and the value of the inventory of
store II can be found by multiplying matrix A times
the second column of matrix C, we can write this
result as

 The matrix we have represented as AC is called
the product of the row matrix A and the 3  2
matrix C.
 We should note that matrix A is a 1  3 matrix,

matrix C is a 3  2 matrix, and their product is a
1  2 matrix.

Product of Two Matrices
Figure 3.5

Example 2 – Material Supply
Pentico Industries must choose a supplier for the
raw materials that it uses in its two manufacturing
divisions at Clarion and Brooks.
Each division uses different unit amounts of steel,
wood, and plastic as shown in the table below.

Example 2 – Material Supplycont’d
The two supply companies being considered,
Western and Coastal, can each supply all of these
materials, but at different prices per unit, as
described in the following table.
Use matrix multiplication to decide which supplier

should be chosen to supply (a) the Clarion division
and (b) the Brooks division.
The different amounts of products needed can be
placed in matrix A and the prices charged by the
suppliers in matrix B.
The price from each supplier for each division is found

from the product AB.

(a) The price for the Clarion division for supplies from
Western is in the first row, first column and is
$10,160; the price for Clarion for supplies from
Coastal is in the first row, second column and is
$9940.
Thus the best price for Clarion is from Coastal.
(b) The price for the Brooks division for supplies from
Western is in the second row, first column and is
$11,275; the price for Brooks for supplies from
Coastal is in the second row, second column and is
$11,330.
Thus the best price for Brooks is from Western.

Identity Matrix
An n  n (square) matrix that has 1s down its diagonal
and 0s everywhere else is called an identity matrix.
(ma trận đơn vị)
The matrix
is a 3  3 identity matrix.
The matrix I is called an identity matrix because for
any 3  3 matrix A, AI = IA = A. That is, if I is multiplied
by a 3  3 matrix A, the product matrix is A.
Example 3 – Identity Matrix
(a) Write the 2  2 identity matrix.
(b) Given

Example 3 – Identity Matrix
Exercises:
[1] pages 188-192
1-28; 29-34;
35, 36, 39, 42, 43, 44, 45, 46
[1] pages 199-202

1-42;
43, 44, 45, 52, 53, 54

Gauss-Jordan Elimination:
Solving Systems of Equations
1.2
(Phép khử Gaus-Jordan
Giải hệ phương trình)

Objectives
• To use matrices to solve systems of linear
equations with unique solutions
• To use matrices to solve systems of linear

equations with nonunique solutions

Systems with Unique Solutions
 In “Solutions of Systems of Linear Equations,” we
operated on the coefficients of the variables x, y,
and z and on the constants.
 If we keep the coefficients of the variables x, y, and
z in distinctive columns, we do not need to write
the equations.
 In solving a system of linear equations with
matrices, we first write the coefficients and
constants from the system in the augmented
matrix (Ma trận mở rộng).
For example, the augmented matrix associated with
In the augmented matrix, the numbers on the left side of the

solid line form the coefficient matrix (ma trận hệ số), with
each column containing the coefficients of a variable (0
represents any missing variable).
The column on the right side of the line (called the augment)
contains the constants. Each row of the matrix gives the
corresponding coefficients of an equation.
The three different operations we can use to reduce the
matrix are called elementary row operations (phép
biến đổi dòng sơ cấp) and are similar to the operations
with equations that result in equivalent systems.
These operations are
1. Interchange two rows.
2. Add a multiple of one row to another row.
3. Multiply a row by a nonzero constant.

When a new matrix results from one or more of these
elementary row operations being performed on a matrix, the
new matrix is said to be equivalent to the original because
both these matrices represent equivalent systems of
equations.
Thus, if it can be shown that the augmented matrix
then the systems corresponding to these matrices have the

same solution.
That is,
Thus, if a system of linear equations has a unique solution,

we can solve the system by reducing the associated matrix
to one whose coefficient matrix is the identity matrix and
then “reading” the values of the variables that give the
solution.
The process that we use to solve a system of
equations with matrices (called the elimination
method or Gauss-Jordan elimination method) is a
systematic procedure that uses row operations to
attempt to reduce the coefficient matrix to an
identity matrix.

For example, the system
can be represented by the augmented matrix
The next procedure (using the augmented matrix above) is used to

reduce the augmented matrix for a system of equations to an
equivalent matrix from which the solutions to the system may be found.

11/26/2021 47
The systems of equations corresponding to the
initial and the final augmented matrices are
and

Because the augmented matrices for these systems
are equivalent, both systems have the same
solution, x = 3, y = –2, and z = 2.

Example 2 – Manufacturing
The Walters Manufacturing Company needs to
know how best to use the time available within its
three manufacturing departments in the
construction and packaging of the three types of
metal storage sheds. Each one must be stamped,
painted, and packaged.
Table 3.6 shows the number of hours required for

the processing of each type of shed.
Table 3.6
Example 2 – Manufacturing cont’d
Using the information in the table, determine how

many of each type of shed can be produced if the
stamping department has 3200 hours available, the
painting department has 1700 hours, and the
packaging department has 1300 hours.
If we let x1 be the number of type I sheds, x2 be the
number of type II sheds, and x3 be the number of type
III sheds, we can develop the following equations.
Stamping hours:
Painting hours:
Packaging hours:

The augmented matrix for this system of equations is
Reducing this augmented matrix proceeds as follows:

Thus the solution to the system is

x1 = 300 x2 = 600 x3 = 200
The company should make 300 type I, 600 type II,
and 200 type III sheds.
Systems with Nonunique Solutions
It is also possible for a system of linear equations to
have an infinite number of solutions or no solution at
all.
Although coefficient matrices for systems with an

infinite number of solutions or no solution will not
reduce to identity matrices, row operations can be
used to obtain a reduced form from which the
solutions, if they exist, can be determined.

A matrix is said to be in reduced form (dạng bậc
thang rút gọn) when it is in the following form:
1. The first nonzero element in each row is 1.
2. Every column containing a first nonzero element for
some row has zeros everywhere else.
3. The first nonzero element of each row is to the right
of the first nonzero element of every row above it.
4. All rows containing zeros are grouped together below
the rows containing nonzero entries.

The following matrices are in reduced form because they satisfy
these conditions.
The following matrices are not in reduced form.
In the first two matrices, the circled element must be changed to

obtain a reduced form.
Example 3 – Matrix Solution of a System
Solve the system

Attempting to reduce the coefficient matrix of the
associated augmented matrix to an identity matrix
requires the following.

The entry in row 3, column 3 cannot be made 1 using

rows below row 2. Moving to column 4, the entry in
row 3, column 4 is a 1.
Using row 3 gives

The augmented matrix is now reduced; this matrix corresponds to

the system
If we solve each of the equations for the leading variable (the

variable corresponding to the first 1 in each row of the reduced
form of a matrix) and let any non-leading variables equal any real
number (x3 in this case), we obtain the general solution of the
system.
The general solution gives the values of x1 and x2 dependent on the

value of x3, so we can get many different solutions of the system by
specifying different values of x3.
For example, if x3 = 1, then x1 = 4, x2 = –4, x3 = 1, and
x4 = 4 is a solution of the system; if we let x3 = –2, then
x1 = –2, x2 = –1, x3 = –2, and x4 = 4 is another solution.

Unique and Nonunique solutions

Table 3.7

Nonsquare Systems
Finally, we consider systems with fewer equations
than variables. Because the coefficient matrix for
such a system is not square, it cannot reduce to an
identity matrix.
Hence these systems of equations cannot have a

unique solution but may have no solution or
infinitely many solutions.

Nonsquare Systems
Nevertheless, they are solved in the same manner as
those considered so far but with the following two
possible results.
1. If the reduced augmented matrix contains a row of
0s in the coefficient matrix with a nonzero number in
the augment, the system has no solution.
2. Otherwise, the system has infinitely many
solutions.

Example 5 – Investment
A trust account manager has $500,000 to be invested
in three different accounts. The accounts pay annual
interest rates of 8%, 10%, and 14%, and the goal is to
earn $49,000 a year.
To accomplish this, assume that x dollars is invested
at 8%, y dollars at 10%, and z dollars at 14%.
Find how much should be invested in each account to
satisfy the conditions.

The sum of the three investments is $500,000, so we
have the equation
The interest earned from the 8% investment is 0.08x,

the amount earned from the 10% investment is
0.10y, and the amount earned from the 14%
investment is 0.14z, so the total amount earned from
the investments is given by the equation

These two equations represent all the given

information, so the system is
We solve this system using matrices, as follows:

This matrix represents the equivalent system
Because a negative amount cannot be invested, x,

y, and z must all be nonnegative.
Note that x  0 when z  0 and that y  0 when
450,000 – 3z  0, or when z  150,000.

Thus the amounts invested are
There are many possible investment plans. One example

would be with z = $100,000, x = $250,000, and y = $150,000.
Observe that the values for x and y depend on z, and once z is
chosen, x will be between $50,000 and $350,000, and y will
be between $0 and $450,000.

Exercises
[1] pages 212-216
1-46;
50, 51, 52, 53, 56, 57, 65, 66, 67.

1.3
Inverse of a Square Matrix;
Matrix Equations

Objectives
• To find the inverse of a square matrix
• To use inverse matrices to solve systems of linear

equations
• To find determinants of certain matrices

Inverse Matrices
(Ma trận nghịch đảo)

Inverse Matrices
If the product of A and B is the identity matrix, I, we
say that B is the inverse of A (and A is the inverse of
B). The matrix B is called the inverse matrix of A,
denoted A–1.
•Inverse Matrices

Example 1 – Inverse Matrices
Is B the inverse of A if

Inverse Matrices
If the inverse exists for a square matrix A, we find A–1
as follows.

Inverse Matrices
The technique of reducing can be used to find A–1
or to find that A–1 doesn’t exist for any square matrix A.
However, a special formula can be used to find the
inverse of a 2  2 matrix, if the inverse exists.
Inverse of a 2  2 Matrix
This result can be verified by direct calculation or by

reducing.
Example 4 – Decoding Messages
In the Application Preview we recalled how to encode messages with
and with the encoding matrix
which converts the numbers to the coded message (in pairs of numbers).
Example 4 – Decoding Messages cont’d
To decode any message encoded by A, we must find

the inverse of A and multiply A–1 by the coded
message.
Use the inverse of A to decode the coded message

96, 118, 65, 84, 131, 168, 55, 72.

We first find the inverse of matrix A.
We can write the coded message numbers (in pairs) as columns

of a matrix B and then find the product A–1B.
Reading the numbers (down the respective columns) gives the

result 7, 15, 15, 4, 27, 10, 15, 2, which is the message “good job.”
Matrix Equations
The system can be written as
either of the following matrix equations.
or

Matrix Equations
We can see that this second form of a matrix equation
is equivalent to the first if we carry out the
multiplication.
With the system written in this second form, we could

also solve the system by multiplying both sides of the
equation by the inverse of the coefficient matrix.

Ex.5 – Solution with Inverse Matrices
Use an inverse matrix to solve the system:

To solve the system, we multiply both sides of
the associated matrix equation,
by the inverse of the coefficient matrix.

Note that we must be careful to multiply both sides from the

left because matrix multiplication is not commutative.
If we carry out the multiplications, we obtain
which yields x = 3, y = –2, z = 2.

Matrix Equations
If A is an n  n matrix and if B and X are n  1
matrices, then is a matrix equation.
If the inverse of a matrix A exists, then we can use
that inverse to solve the matrix equation for the
matrix X. The general solution method follows.
Multiplying both sides of the equation (from the
left) by A–1 gives

Matrix Equations
Thus inverse matrices can be used to solve systems
of equations. Unfortunately, this method will work
only if the solution to the system is unique. In fact,
a system has a unique solution if and only if
A –1 exists.
If the inverse of the coefficient matrix exists, the

solution method above can be used to solve the
system.
1.4
Determinants - Định thức

Determinants
We know that the inverse of A = can be
found with the formula
If
The value used in finding the inverse of this
2  2 matrix is used so frequently that it is given a
special name, the determinant of A (denoted det A
or | A |).

Determinants
Determinant of a 2  2 Matrix
We have already seen that the inverse of a 2  2

matrix A does not exist if and only if det A = 0.
In general, the inverse of an n  n matrix B does not
exist if det B = 0. This also means that if the coefficient
matrix of a system of linear equations has a
determinant equal to 0, the system does not have a
unique solution.
Ex.9 – Solution with Technology
Consider the following matrix equation AX = B.
(a) Use a calculator to find the determinant of A.
(b) Use the result from part (a) to determine whether

has a unique solution.
(a) Entering matrix A and using the determinant
command gives det A = 24.
(b) Because A is the coefficient matrix for the system
and det A = 24, the system has a unique solution.
Using the inverse matrix gives the solution
x1 = 1, x2 = 2, x3 = 0.5, x4 = –1, x5 = 3.

1.5
Applications of Matrices:
Leontief Input-Output Models

Objectives
• To interpret Leontief technology matrices
• To use Leontief models to solve input-output

problems

Example 1 – Leontief Model
Use Table 3.10 to answer the following questions.
(a) How many units of agricultural products and of
fuels are required to produce 100 units of
manufactured goods?
(b) Production of which commodity is least
dependent on the other two?
(c) If fuel costs rise, which two industries will be most
affected?

Example 1 – Leontief Model

(a) Referring to column 2, manufactured goods, we see
that 1 unit requires 0.1 unit of agricultural products and
0.3 unit of fuels.
Thus 100 units of manufactured goods require 10 units
of agricultural products and 30 units of fuels.
(b) Looking down the columns, we see that 1 unit of
agricultural products requires 0.3 unit of the other two
commodities; 1 unit of manufactured goods requires 0.4
unit of the other two; and 1 unit of fuels requires 0.4
unit of the other two.

Thus production of agricultural products is least

dependent on the others.
(c) A rise in the cost of fuels would most affect those
industries that use the larger amounts of fuels. One
unit of agricultural products requires 0.1 unit of fuels,
whereas a unit of manufactured goods requires 0.3
unit, and a unit of fuels requires 0.4 of its own units.
Thus manufacturing and the fuel industry would be
most affected by a cost increase in fuels.

Open Leontief Model
Each industry has a gross production. The gross
production matrix for the economy can be represented
by the column matrix
where x1 is the gross production of agricultural products,

x2 is the gross production of manufactured goods, and x3
is the gross production of fuels.
The amounts of the gross productions used within the
economy by the various industries are given by AX.
Open Leontief Model
Those units of gross production not used by these
industries are called final demands or surpluses and
may be considered as being available for consumers,
the government, or export.
If we place these surpluses in a column matrix D, then
they can be represented by the equation
where I is an identity matrix of appropriate size. This

matrix equation is called the technological equation for
an open Leontief model.

Open Leontief Model
This is called an open model because some of the
goods from the economy are “open,” or available to
those outside the economy.
Open Leontief Model

Example 2 – Gross Outputs
Technology matrix A represents a simple economy with
an agricultural industry, a manufacturing industry, and a
fuels industry (as introduced in Table 3.10).
Table 3.10
If we wish to have surpluses of 85 units of agricultural

products, 65 units of manufactured goods, and 0 units of
fuels, what should the gross outputs be?
Let X be the matrix of gross outputs for the industries
and let D be the column matrix of each industry’s
surpluses. Then the technological equation is
We begin by finding the matrix

Hence we must solve the matrix equation
The augmented matrix is

If we reduce by the method, “Gauss-Jordan

Elimination: Solving Systems of Equations,” we obtain
so the gross outputs for the industries are

Open Leontief Model
In general, the technological equation for the
open Leontief model can be solved by using
the inverse of
That is, has the solution

Closed Leontief Model
(tự đọc)

The model we have considered is referred to as an open Leontief
model because not all inputs and outputs were incorporated
within the technology matrix.
If a model is developed in which all inputs and outputs are used

within the system, then such a model is called a closed Leontief
model. In such a model, labor (and perhaps other factors) must
be included.
Labor is included by considering a new industry, households,

which produces labor. When such a closed model is developed,
all outputs are used within the system, and the sum of the
entries in each column equals 1.
In this case, there is no surplus, so D = 0, and we have
the following:
For closed models, the technological equation does not

have a unique solution, so the matrix (I – A)–1 does not
exist and hence cannot be used to find the solution.
Example 5 – Closed Economy
The following closed Leontief model with technology matrix
A might describe the economy of the entire country, with x1
equal to the government budget, x2 the value of industrial
output (profit-making organizations), x3 the budget of
nonprofit organizations, and x4 the households budget.
Find the total budgets (or outputs) x1, x2, x3, and x4.
•This is a closed Leontief model; therefore, we
solve the technological equation (I – A)X = 0.
•or
The augmented matrix for this system is
Reducing this matrix with row operations, we

obtain

See Figure 3.12 for this reduction with a graphic

calculator.
Figure 3.12
The system of equations that corresponds to this

augmented matrix is

Note that the economy satisfies the given equation if the

government budget is times the households budget, if
the value of industrial output is times the households
budget, and if the budget of nonprofit organizations is times
the households budget.
The dependency here is expected because industrial output is

limited by labor supply.
Exercises cont’d
Exercises: [1] pages 237-240

1-42;
50, 51, 52, 53, 56, 57, 65, 66, 67.

1.6
Market Structure and Equilibrium
We will consider the two extreme cases:
Perfect
Competition Monopoly
(Tự đọc)
Market Efficiency
• Decision makers in a market behave rationally

and have full access to all relevant behavior.
• Consumer and producer surplus is maximized

Determinants of Market Structure
• Number and size of buyers, sellers, and

potential entrants,
• Degree of product differentiation
• Amount and cost information about product
price and quality, and
• Conditions for entry into and exit from a
market

Market Equilibrium
Perfect Competition
• Supply forces (producers) P Demand

and demand forces curve
(consumers) seek a
balance
• Price below perceived Pe
value increases demand
• Price above ATC provides
pure profit, an incentive
to increase supply Supply
curve Q

Individual Firm’s Demand
and MR Curve
P
Highly elastic demand
One firm’s change in Q has little effect on price
Pe
∆P
∆Q Q
Market Equilibrium
Perfect Competition
Individual Firm •Price above ATC

provides pure profit, an
Price (P)
MC incentive to increase
ATC
output
P1
P2 •Pure profit equals
(P1 x Q1) – (P2 x Q2)
Q2 Q1

Market Equilibrium
Perfect Competition
•All firms are price takers

Individual Firm
•Market price (P1) equals
Price (P) marginal revenue (MR) and
MC average revenue (AR)
ATC
P1 •Optimal level of output is
P2
where MR = MC = P1
•In long-run P will go to P2
where pure profit is
Q2 Q1 eliminated

Market Supply Curve
Summation of supply curves for individual firms

Q Demand
Market supply curve =
Qm
Sum vertically
Qj Janet’s sawmill
+
Qt Tracy’s sawmill
+
Qp Pete’s sawmill
+
Qj Joe’s sawmill
Pm (same P for all firms and market) P
Perfect Competition - Example
• Given supply and demand functions,
Qs = 30 + 55 P
Qd = 230 – 45 P
• Determine marginal revenue, MR, i.e. Pe, from supply and
demand curves for total market. Calculate Pe from market
supply equals demand equilibrium condition,
Qs = Qd
30 + 55 P = 230 – 45 P
100 P = 200
P = 2 = MR
• Use P to get equilibrium quantity, Qe
Qe = 230 – 45 x 2 = 230 –90 = 140

Apply Market Price to Individual Firm
“Pete’s Sawmill”
P = $2 from market equilibrium
Determine quantity Pete should

produce from Pete’s marginal cost
(MC) curve, which is,
Qs = 5 + 5.8 P
= 5 + 5.8 x 2
= 16.6

Market Equilibrium
Monopoly
•Only one producer

– Producer is a price “setter”, not a price
taker
• Demand curve restricts ability to set price
– Demand curve determines marginal
revenue (MR)
• Only way to change quantity sold is to
change market price
• Marginal revenue (MR) is not constant
•What forces lead to a monopoly

Market Equilibrium
Monopoly
P
Monopolists
MC curve
Pe
Up & over to
get P MC = MR to max. profit
Market
Down
to
demand curve
get Monopolists
Q MR curve Q
e stands for Qe determine fist, then get P from demand curve
equilibrium
Marginal Revenue Curve
•TR = P x Q
•Demand curve – P = a – bQ
•TR = (a – bQ ) x Q
= aQ – bQ2
•MR = dTR/dQ = a – 2b Q
•Same intercept and 2x slope of demand
curve

Market Equilibrium
Monopoly compared to competitive equilibrium
P
Monopolists
MC curve
Pm m – monopoly equilibrium
Pc
c – competitive equilibrium
Market
demand curve
Monopolists
MR curve Q
Qm Qc
Market Equilibrium
Monopoly
Compared to competitive
market equilibrium –
Monopolist produces (sells)

smaller quantity at higher price

Monopoly – Example
Given, same supply and demand curves as in
competitive example,
Qd = 230 – 45 P (given), or
P = 5.11 – 1/45 Q
Qs = 30 + 55 P (given), or
P = 0.545 + 1/55 Q
Determine marginal revenue curve:
Revenue = P x Q
= Q (5.11 – 0.022 Q)
= 5.11 Q – 0.022 Q2
MR = 5.11 – 0.044 Q

Monopoly – Example, cont.
Equate MC and MR to determine Q:

5.11 – 0.044 Q = 0.545 + 0.018 Q
4.57 = 0.062 Q
Q = 74
Substitute Q into demand curve to get P,
P = 5.11 – 0.022 x 74 = 3.48
Compare the solutions for the two types of markets,

Competition: P = 2.00, Q = 130
Monopoly: P = 3.48, Q = 74
Monopsony
•One buyer and many sellers

•Common in forest products markets
– Bulky and heavy commodity
– High transportation cost
– Limits haul distance
•How can sellers gain market power?

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TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG

KHOA TOÁN – THỐNG KÊ

Chapter 1: Matrix and systems of equations

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 1

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 2

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 3

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 4

has m rows and n columns, so it is an m  n matrix.

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 5

do not have the same order.

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 6

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 7

A matrix with one row, such as [9 5] or [3 2 1 6], is

is called a column matrix (ma trận cột).

We define two matrices to be equal if they are of

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 9

When the columns and rows of matrix A

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 10

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 11

If two matrices have the same number of rows and

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 12

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 13

 The commutative law of addition for matrices:

 The matrix –B is called the negative of the matrix

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 14

We can define the difference A – B (when A and B

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 15

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 16

The balance of trade we seek is given by the

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 17

Any negative entry indicates an unfavorable balance of

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 19

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 20

find 5A and –2A.

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 21

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 22

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 23

This useful way of operating with a row matrix and

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 24

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 25

If the values of the items are $800, $750, and $500,

Because the value of the inventory of store I can be

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 27

 We should note that matrix A is a 1  3 matrix,

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 28

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 29

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 30

Use matrix multiplication to decide which supplier

The price from each supplier for each division is found

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 32

Thus the best price for Brooks is from Western.

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 34

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 36

[1] pages 199-202

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 37

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 38

• To use matrices to solve systems of linear

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 39

In the augmented matrix, the numbers on the left side of the

11/26/2021 C01120-Chapter 1: Matrix and systems of equations 42

then the systems corresponding to these matrices have the

Thus, if a system of linear equations has a unique solution,