Math for Econ I-Worksheet 4

New York University

1. Compute the derivatives of the following using the power rule:
(a) x6

(b) x22

2
(d) x
x

(c) 3x

Solution:
(a) 6x5
(b) 4x3
(c)

3 3/2
2 x
5/2

(d) 3x

2. Compute the following:

(a)

d
b+1
)
dy (Ay

(b)

d
dA

A2

d
(Ap + B)
(c) dp

d
Solution: (a) dy
(Ay b+1 ) = A(b + 1)y b .


d
1
7/2
(b) dA
= 5
2 A
A2 A

(c)

dp (Ap

+ B) = Ap1

3. For each of the following functions find a function F (x) that has f (x) as its derivative. (Note that you are not
asked to find f 0 (x).)
(a) f (x) = x2

(c) f (x) = xa

(b) f (x) = 2x + 3

Solution: There are many answers.

(a)

x3
3
2

(b) x + 3x
(c)

xa+1
a+1

4. In the graph of f in figure below, at which of the labelled x-values is

(a) f (x) greatest?
(b) f (x) least?
(c) f 0 (x) greatest?
(d) f 0 (x) least?

Solution: (a) x3

(b) x4

(c) x5

(d) x3

5. Let f (x) = x1 . Using the definition of the derivative show that f 0 (x) = x12 . Using this find the equation of the
tangent line to the curve at x = 1. Solution:
f 0 (x)

=
=

lim

h0

lim

1
x+h

1
x

h
h
x(x+h)

h
h
= lim
h0 x(x + h)h
1
= lim
h0 x(x + h)
2.3 THE DERIVATIVE FUNCTION
1139
= 2
x

1 Page: 139 (January 18, 2012 16 : 44) [ex-3]

R:

h0

current
f 0 (1)
= 1 and f (1) = 1. So the tangent line has equation y = 1 (x 1) = x + 2.
time
6. Figure below shows the graph
of f 0 , the derivative of a function f . On what interval(s) is the function f

(a) Increasing?

h of f ! , the derivative of a function f . On what interval(s) is the function f

(b) Decreasing?
(b) Decreasing?

f!
x3 x4

x1

x5

x2
2-3w41fig

!
Figure 2.80: Graph of f ! , not f

Solution:

(a) The function f is increasing where f 0 is positive, so for x1 < x < x3 .

!

increasing where f is positive,

so forfunction
x1 < x <f xis3 . decreasing where f 0 is negative, so for 0 < x < x or x < x < x .
(b) The
1
3
5
decreasing where f ! is negative, so for 0 < x < x1 or x3 < x < x5 .

7. The cost, C = f (w), in dollars of buying a chemical is a function of the weight bought, w, in pounds.

R:

< x < x5

(a) In the statement f (12) = 5, what are the units of the 12? What are the units of the 5? Explain what this
is saying about the cost of buying the chemical.

the spike function in Figure

2.81.
you say
the graphfof
0 f?
(b)
DoWhat
youcan
expect
theabout
derivative
to be positive or negative? Why?

(c) In the statement f 0 (12) = 0.4, what are the units of the 12? What are the units of the 0.4? Explain what
this is saying
about the cost of buying the chemical.
!
f (t)

Solution:
(a) The 12 represents the weight of the chemical; therefore, its units are pounds. The 5 represents the cost of
the chemical; therefore, its units are dollars. The statement f (12) = 5 means that when the weight of the
chemical is 12 pounds, the cost is 5 dollars.
2-3w42fig
t

(b) We expect the derivative to be positive since we expect the cost of the chemical to increase when the weight
2.81
boughtFigure
increases.

(c) Again, 12 is the weight of the chemical in pounds. The units of the 0.4 are dollars/pound since it is the
of change
of constant.
the costOn
as the
a function
of the
weight
of the chemical bought. The statement f 0 (12) = 0.4
re f = 0, f is not changing atrate
all, and
is therefore
small interval
where
f ! > 0,
!
means
the costquite
is increasing
a ratebeofconstant
0.4 dollars
spike, that
f is increasing
sharply. So at
f should
for a per pound when the weight is 12 pounds, or that
point where f hits the top of its
an additional
pound
an 2.82.
extra 40 cents.
ncrease, and then be constant again.
A possible graph
forwill
f is cost
shownabout
in Figure
!

f (t)

2-3w42ans

8. The supply function for a commodity with price P is given by S(P ) = a+bP , where a and b are positive constants.
dS
Find dP
using the definition of the derivative and interpret its meaning. Sketch a graph of both S(P ) and S 0 (P ).
Make sure you label the axes.
Solution:

a + b(P + h) a bP
bh
S(P + h) S(P )
= lim
= lim
= b.
h0
h0 h
h0
h
h

S 0 (P ) = lim

9. The demand curve for a product is given by q = 300 3p, where p is the price of the product and q is the quantity
that consumers buy at this price.
(a) Write the revenue as a function, R(p), of price.
(b) Find R0 (10) and interpret your answer in terms of revenue.
(c) For what prices is R0 (p) positive? For what prices is it negative?
Solution:
(a) We have R(p) = pq = p(300 3p) = 300p 3p2
(b) Since R0 (p) = 300 6p, we have R0 (10) = 300 6 10 = 240. This means that revenues are increasing at a
rate of $240 per dollar of price increase when the price is $10.
(c) R0 (p) = 300 6p is positive for p < 50 and negative for p > 50.
10. Let f (x) = x3 6x2 15x + 20. Find f 0 (x) and all values of x for which f 0 (x) = 0. Explain the relationship
between these values of x and the graph of f (x). Determine where f 0 (x) is positive ans where it is negative.
Solution: Since f (x) = x3 6x2 15x + 20, we have f 0 (x) = 3x2 12x 15. To find when f 0 (x) = 0, we solve
3x2 12x 15

3(x2 4x 5)

3(x + 1)(x 5)

0.

We see that f 0 (x) = 0 at x = 1 and at x = 5. We can see that the graph of f (x) is horizontal at x = 1 and
at x = 5, which confirms what we found using the derivative.
11. For the total cost function
T C(y) = y 2 + 10y + 25, y > 0
show that
(a) M C is less than AC where AC is falling.
(b) M C = AC at the point where the AC curve is horizontal.
(c) M C exceeds AC where AC is rising.
2

25
0
= y + 10 + 25
Solution: M C(y) = 2y + 10 and AC(y) = y +10y+25
y
y and AC (y) = 1 y 2 . AC is horizontal where
25
0
AC (y) = 0, so 1 y2 = 0 implies y = 5. At y = 5 M C = 2 5 + 10 = 20 and AC = 5 + 10 + 5 = 20 hence they
are equal this shows part(b) . Now M C < AC implies

2y + 10 < y + 10 +

25
y

y<5
and this is where AC is falling. This shows part (a). Similar work shows part (c).