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(b) Read about the principle of diminishing returns in an economics text. Then write a paragraph discussing the economic factors that might account for this phenomenon. 53. It is estimated that the weekly output at a certain plant is given by Q(x, y) 1,175x 483y 3.1x2y 1.2x3 2.7y2 units, where x is the number of skilled workers and y is the number of unskilled workers employed at the plant. Currently the workforce consists of 37 skilled and 71 unskilled workers. (a) Store the output function as 1,175X 483Y 3.1(X^2)*Y 1.2(X^3) 2.7(Y^2) Store 37 as X and 71 as Y and evaluate to obtain Q(37, 71). Repeat for Q(38, 71) and Q(37, 72). (b) Store the partial derivative Qx(x, y) in your calculator and evaluate Qx(37, 71). Use the result to estimate the change in output resulting when the workforce is increased from 37 skilled workers to 38 and the unskilled workforce stays xed at 71. Then compare with the actual change in output, given by the difference Q(38, 71) Q(37, 71). (c) Use the partial derivative Qy(x, y) to estimate the change in output that results when the number of unskilled workers is increased from 71 to 72 while the number of skilled workers stays at 37. Compare with Q(37, 72) Q(37, 71). 54. Repeat Problem 53 with the output function Q(x, y) 1,731x 925y x2y 2.7x2 1.3y3/2 and initial employment levels of x 43 and y 85.

3
Optimizing Functions of Two Variables

Suppose a manufacturer produces two VCR models, the deluxe and the standard, and that the total cost of producing x units of the deluxe and y units of the standard is given by the function C(x, y). How would you nd the level of production x a and y b that results in minimal cost? Or perhaps the output of a certain production process is given by Q(K, L), where K and L measure capital and labor expenditure, respectively. What levels of expenditure K0 and L0 result in maximum output? In Section 4 of Chapter 3, you learned how to use the derivative f (x) to nd the largest and smallest values of a function of a single variable f(x), and the goal of this section is to extend those methods to functions of two variables f(x, y). We begin with a denition.

534 Chapter 7

Calculus of Several Variables

Relative Extrema

I The function f(x, y) is said to have a relative maximum at the point P(a, b) in the domain of f if f(a, b) f(x, y) for all points sufciently close to P. Likewise, f(x, y) has a relative minimum at Q(c, d) if f(c, d) f(x, y) for all points (x, y) sufciently close to Q.

In geometric terms, there is a relative maximum of f(x, y) at P(a, b) if the surface z f(x, y) has a peak at the point (a, b, f(a, b)); that is, if (a, b, f(a, b)) is at least as high as any nearby point on the surface. Similarly, a relative minimum of f(x, y) occurs at Q(c, d) if the point (c, d, f(c, d)) is at the bottom of a valley, so (c, d, f(c, d)) is at least as low as any nearby point on the surface. For example, in Figure 7.11, the function f(x, y) has a relative maximum at P(a, b) and a relative minimum at Q(c, d).

Relative maximum (a, b, f (a, b))

Surface z = f (x, y)

(c, d, f (c, d )) P(a, b)

Relative minimum

Q(c, d ) x

FIGURE 7.11 Relative extrema of the function f (x, y).

CRITICAL POINTS

The points (a, b) in the domain of f(x, y) for which both fx(a, b) 0 and fy(a, b) 0 are said to be critical points of f. Like the critical points for functions of one variable, these critical points play an important role in the study of relative maxima and minima. To see the connection between critical points and relative extrema, suppose f(x, y) has a relative maximum at (a, b). Then the curve formed by intersecting the surface z f(x, y) with the vertical plane y b has a relative maximum and hence a horizontal tangent when x a (see Figure 7.12a). Since the partial derivative fx(a, b) is the slope of this tangent, it follows that fx(a, b) 0. Similarly, the curve formed by intersecting the surface z f(x, y) with the plane x a has a relative maximum when y b (see Figure 7.12b), and so fy(a, b) 0. This shows that a point at which a function of two variables has a relative maximum must be a critical point. A similar argument shows that a point at which a function of two variables has a relative minimum must also be a critical point.

Chapter 7 I Section 3

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z Horizontal tangent (a, b, f (a, b))

(a, b, f (a, b)) Horizontal tangent y y

(a, b) x (a) x (b)

(a, b)

FIGURE 7.12 The partial derivatives are zero at a relative extremum. Here is a more precise statement of the situation.

Critical Points and Relative Extrema I A point (a, b) in the domain of f(x, y) for which the partial derivatives fx and fy both exist is called a critical point of f if both
fx(a, b) 0 and fy(a, b) 0 If the rst-order partial derivatives of f exist at all points in some region R in the xy plane, then the relative extrema of f in R can occur only at critical points.
z Saddle point

FIGURE 7.13 The surface z

Although all the relative extrema of a function must occur at critical points, not every critical point of a function is necessarily a relative extremum. Consider, for example, the function f(x, y) y2 x2, whose graph, which resembles a saddle, is sketched in Figure 7.13. In this case, fx(0, 0) 0 because the surface has a relative maximum (and hence a horizontal tangent) in the x direction, and fy(0, 0) 0 because the surface has a relative minimum (and hence a horizontal tangent) in the y direction. Hence (0, 0) is a critical point of f, but it is not a relative extremum. For a critical point to be a relative extremum, the nature of the extremum must be the same in all directions. A critical point that is neither a relative maximum nor a relative minimum is called a saddle point. Here is a procedure involving second-order partial derivatives that you can use to decide whether a given critical point is a relative maximum, a relative minimum, or a saddle point. This procedure is the two-variable version of the second derivative test for functions of a single variable that you saw in Chapter 3, Section 2.

THE SECOND PARTIALS TEST

536

Chapter 7

Calculus of Several Variables

The Second Partials Test

Suppose that (a, b) is a critical point of

D fxx(a, b)fyy(a, b) [ fxy(a, b)]2 If D 0, then f has a saddle point at (a, b). If D 0 and fxx(a, b) 0, then f has a relative maximum at (a, b). If D 0 and fxx(a, b) 0, then f has a relative minimum at (a, b). If D 0, the test is inconclusive and f may have either a relative extremum or a saddle point at (a, b).

Notice that there is a saddle point at the critical point (a, b) only when the quantity D in the second partials test is negative. If D is positive, there is either a relative maximum or a relative minimum in all directions. To decide which, you can restrict your attention to any one direction (say, the x direction) and use the sign of the second partial derivative fxx in exactly the same way as the single variable second derivative was used in the second derivative test given in Chapter 3; namely, a relative minimum if fxx(a, b) 0 a relative maximum if fxx(a, b) 0 You may nd the following tabular summary a convenient way of remembering the conclusions of the second partials test:
Sign of D Sign of fxx Behavior at (a, b) Relative minimum Relative maximum Saddle point

The proof of the second partials test involves ideas beyond the scope of this text and is omitted. The following examples illustrate how the test can be used.

EXAMPLE 3.1
Find all critical points for the function f(x, y) x2 y2 and classify each as a relative maximum, a relative minimum, or a saddle point. Solution Since fx 2x and fy 2y

Chapter 7 I Section 3

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537

the only critical point of f is (0, 0). To test this point, use the second-order partial derivatives fxx 2 to get D(x, y) fxx fyy ( fxy)2 2(2) 0 4 That is, D(x, y) 4 for all points (x, y) and, in particular, D(0, 0) 4 0 Hence, f has a relative extremum at (0, 0). Moreover, since fxx(0, 0) 2 0 it follows that the relative extremum at (0, 0) is a relative minimum. For reference, the graph of f is sketched in Figure 7.14. fyy 2 and fxy 0

Explore!
x

Relative minimum

Refer to Example 3.2. Store f(x, y) y2 x2 as Y1 L12 X2, where L1 {2, 1, 0, 0.8, 1.5}. Graph these curves using the decimal window [4.7, 4.7]1 by [3.1, 3.1]1, paying close attention to the order in which the shapes appear. Describe what you observe.

FIGURE 7.14 The surface z x2 y2 with a relative minimum at (0, 0).

EXAMPLE 3.2
Find all critical points for the function f(x, y) y2 x2 and classify each as a relative maximum, a relative minimum, or a saddle point. Solution Since fx 2x fy 2y

and

538

Chapter 7

Calculus of Several Variables

z Saddle point

the only critical point of f is (0, 0). To test this point, compute the second-order partial derivatives fxx 2 to get
y

fyy 2
2

and

fxy 0

D(x, y) fxx fyy ( fxy) 2(2) 0 4 D(0, 0) 4 0

That is, D(x, y) 4 for all points (x, y) and, in particular,

It follows that f must have a saddle point at (0, 0). The graph of f is shown in Figure 7.15.

y2 x2 with a saddle point at (0, 0).

FIGURE 7.15 The surface z

Solving the equations fx 0 and fy 0 simultaneously to nd the critical points of a function of two variables is rarely as simple as in Examples 3.1 and 3.2. The algebra in the next example is more typical. Before proceeding, you may wish to refer to the Algebra Review at the back of the book, in which techniques for solving systems of two equations in two unknowns are discussed.

EXAMPLE 3.3
Find all critical points for the function f(x, y) x3 y3 6xy and classify each as a relative maximum, a relative minimum, or a saddle point. Solution Since fx 3x2 6y 3x2 6y 0 fy 3y2 6x 3y2 6x 0

and

you nd the critical points of f by solving simultaneously the two equations and x2 which you can substitute into the second 2

From the rst equation, you get y equation to nd 3x4 6x 0 4

or

x(x3 8) 0

The solutions of this equation are x 0 and x 2. These are the x coordinates of the critical points of f. To get the corresponding y coordinates, substitute these values x2 of x into the equation y (or into either one of the two original equations). 2 You will nd that y 0 when x 0 and y 2 when x 2. It follows that the critical points of f are (0, 0) and (2, 2).

Chapter 7 I Section 3

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539

The second-order partial derivatives of f are fxx 6x Hence, D(x, y) fxx fyy ( fxy)2 36xy 36 36(xy 1) Since D(0, 0) 36[0(0) 1] 36 0 D(2, 2) 36[2(2) 1] 108 0 and fxx(2, 2) 6(2) 12 0 you see that f has a relative minimum at (2, 2). These results are summarized in the following table:
Critical Point (a, b) (0, 0) (2, 2) D(a, b) fxx(a, b) Behavior at (a, b) Saddle point Relative minimum

fyy 6y

and

fxy 6

it follows that f has a saddle point at (0, 0). Since

PRACTICAL OPTIMIZATION PROBLEMS

In the next example, you will see how to apply the theory of relative extrema to solve an optimization problem from economics. Actually, you will be trying to nd the absolute maximum of a certain function. It turns out, however, that the absolute and relative maxima of this function coincide. In fact, in the majority of two-variable optimization problems in the social sciences, the relative extrema and absolute extrema coincide. For this reason, the theory of absolute extrema for functions of two variables will not be developed in this text, and you may assume that the relative extremum you nd as the solution to a practical optimization problem is actually the absolute extremum.

EXAMPLE 3.4
The only grocery store in a small rural community carries two brands of frozen apple juice, a local brand that it obtains at the cost of 30 cents per can and a well-known national brand that it obtains at the cost of 40 cents per can. The grocer estimates that if the local brand is sold for x cents per can and the national brand for y cents per can, approximately 70 5x 4y cans of the local brand and 80 6x 7y cans of the national brand will be sold each day. How should the grocer price each brand to maximize the prot from the sale of the juice?

540

Chapter 7

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Solution Since Total prot from the sale prot from the sale pro t of the local brand of the national brand it follows that the total daily prot from the sale of the juice is given by the function f(x, y) (x 30)(70 5x 4y) (y 40)(80 6x 7y) 5x2 10xy 20x 7y2 240y 5,300 Compute the partial derivatives fx 10x 10y 20 and set them equal to zero to get 10x 10y 20 0 or x y 2 x 53 and and 10x 14y 240 0 5x 7y 120 y 55 and fy 10x 14y 240

Then solve these equations simultaneously to get and

It follows that (53, 55) is the only critical point of f. Next apply the second partials test. Since fxx 10 you get and since
y

fyy 14

and

fxy 10

D(x, y) fxx fyy ( fxy)2 10(14) (10)2 40 D(53, 55) 40 0 and fxx(53, 55) 10 0

it follows that f has a (relative) maximum when x 53 and y 55. That is, the grocer can maximize prot by selling the local brand of juice for 53 cents per can and the national brand for 55 cents per can.
A(1, 5) W(x, y)

EXAMPLE 3.5
B(0, 0) C(8, 0) x

FIGURE 7.16 Locations of businesses A, B, and C and warehouse W.

A planner for Acme Corporation plots a grid on a map and determines that Acmes three most important customers are located at A(1, 5), B(0, 0), and C(8, 0), where units are in miles. At what point W(x, y) should a warehouse be located in order to minimize the sum of the distances from P to A, B, and C (see Figure 7.16).

Chapter 7 I Section 3

Optimizing Functions of Two Variables

541

Solution The point W(x, y) where the sum of the distances is minimized is the same point that minimizes the sum of the squares of the distances; namely, S(x, y) [(x 1)2 (y 5)2] (x2 y2) [(x 8)2 y2]

agfdddefbgddddffc
W to A

afdbfddc
W to B

aedddgbeddgdc
W to C

(By working with the squares of distances, we eliminate the square roots and make the calculations easier.) To minimize S, begin by computing the partial derivatives Sx 2(x 1) 2x 2(x 8) 6x 18 Sy 2(y 5) 2y 2y 6y 10 Then Sx 0 and Sy 0 when 6x 18 0 6y 10 0 5 or x 3 and y . Since Sxx 6, Sxy 0, and Syy 6, you get 3
2 D Sxx Syy Sxy (6)(6) 02 36 0

and Sxx 3, 5 3 6 0 5 3 .

Thus, the sum of squares is minimized at the map point W 3,

THE METHOD OF LEAST SQUARES

Suppose in the process of analyzing a particular phenomenon we gather the set of data plotted in Figure 7.17a. The data points seem to lie roughly in a straight line, but what line? In other words, given a collection of points (x1, y1), (x2, y2), . . . , (xn, yn), what line y mx b best ts the data?

542

Chapter 7

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y y (x1, y1) d1

y mx b d3 d2 (x2, y2) (x3, y3) x x3

x (a) A collection of data points

x1

x2

(b) The least-squares criterion

FIGURE 7.17 Least-squares approximation of a set of data: (a) a collection of data points and (b) the least-squares criterion. One of the most frequently used procedures for determining the best-tting line is to compute the sum of squares S of the vertical distances from the data points to the line y mx b (Figure 7.17b). The sum S will be a function of the two variables m (slope) and b (y intercept), and we obtain the best-tting line by using the optimization procedures of this section to minimize the function S(m, b). Here is an example.

Explore!
Refer to Example 3.6. Store the points (1, 1), (2, 3), and (4, 3) into the data list feature of your graphing calculator, with x coordinates in L1 and y in L2. Find the equation of the leastsquares regression line and graph it along with the data points. Now place the line y 0.6x 1 in Y2 of the equation editor. Which line appears to t the data better and why?

EXAMPLE 3.6
Use the least-squares criterion to nd the equation of the line that is closest to the three points (1, 1), (2, 3), and (4, 3). Solution As indicated in Figure 7.18, the sum of the squares of the vertical distances from the three given points to the line y mx b is
2 2 2 2 2 d1 d2 2 d 3 (m b 1) (2m b 3) (4m b 3)

This sum depends on the coefcients m and b that dene the line, so the sum can be thought of as a function S(m, b) of the two variables m and b. The goal, therefore, is to nd the values of m and b that minimize the function S(m, b) (m b 1)2 (2m b 3)2 (4m b 3)2 You do this by setting the partial derivatives S S and equal to zero to get m b

S 2(m b 1) 4(2m b 3) 8(4m b 3) m 42m 14b 38 0

Chapter 7 I Section 3

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543

4 (2, 3) 3 d2 2 1 (1, m + b) d1 (1, 1)

y = mx + b (4, 4m + b) d3 (4, 3)

(2, 2m + b)

x 1 2 3 4

2 2 FIGURE 7.18 Minimize the sum d 2 1 d 2 d 3.

and

S 2(m b 1) 2(2m b 3) 2(4m b 3) b 14m 6b 14 0 21m 7b 19 7m 3b 7

and solving the resulting simplied equations

simultaneously for m and b to conclude that m Since Smm 42 we have

4 7

and

b1

Smb 14

Sbb 6

So D 0 and Smm 0, and the second partials test tells us that the critical point 4 , 1 corresponds to a relative minimum. Thus, the line that best ts the given three 7 4 points has the equation y x 1. 7

The procedure illustrated in Example 3.6 can be generalized to nd the best-tting line y mx b for an arbitrary set of data points (x1, y1), (x2 , y2), . . . , (xn , yn).

544

Chapter 7

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Specically, you would minimize the sum of squares function S(m, b) (mx1 b y1)2 . . . (mxn b yn)2 It can be shown that the minimum occurs when m and b x2y xxy nx2 (x)2 nxy xy nx2 (x)2

where, for simplicity, we have dropped the indices in the sums. For instance, x2

j1

2 j

2 . . . x2 x2 1 x2 n

The derivation of these formulas involves several complicated algebraic steps and is omitted. For practice, apply the formulas to the data in Example 3.6 to assure yourself that they do indeed yield the result you found directly. We close with an applied example that illustrates how data can be efciently organized for substitution into the formulas to obtain a least-squares line.

EXAMPLE 3.7
A college admissions ofcer has compiled the following data relating students highschool and college grade-point averages:
High-school GPA College GPA 2.0 1.5 2.5 2.0 3.0 2.5 3.0 3.5 3.5 2.5 3.5 3.0 4.0 3.0 4.0 3.5

Find the equation of the least-squares line for these data and use it to predict the college GPA of a student whose high-school GPA is 3.75. Solution Let x denote the high-school GPA and y the college GPA and arrange the calculations as follows:
x 2.0 2.5 3.0 y 1.5 2.0 2.5 xy 3.0 5.0 7.5 x2 4.0 6.25 9.0

continued on next page

Chapter 7 I Section 3

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545

x 3.0 3.5 3.5 4.0 4.0 x 25.5

y 3.5 2.5 3.0 3.0 3.5 y 21.5

xy 10.5 8.75 10.5 12.0 14.0 xy 71.25

x2 9.0 12.25 12.25 16.0 16.0 x 84.75

Use the least-squares formula with n 8 to get m and b 8(71.25) 25.5(21.5) 0.78 8(84.75) (25.5)2

84.75(21.5) 25.5(71.25) 0.19 8(84.75) (25.5)2 y 0.78x 0.19

The equation of the least-squares line is therefore

To predict the college GPA of a student whose high-school GPA is 3.75, substitute x 3.75 into the equation of the least-squares line. This gives y 0.78(3.75) 0.19 3.12 which suggests that the students college GPA might be about 3.1.

y (college GPA) 4 Least-squares line: y = 0.78 x + 0.19 3

x (high-school GPA) 1 2 3 4

FIGURE 7.19 The least-squares line for high-school and college GPAs.

546

Chapter 7

Calculus of Several Variables

A graph of the original data and of the corresponding least-squares line is shown in Figure 7.19. Actually, in practice, it is a good idea to plot the data before proceeding with the calculations. By looking at the graph you will usually be able to tell whether approximation by a straight line is appropriate or whether a curve of some other shape should be used instead.

P . R . O . B . L . E . M . S

7.3

In Problems 1 through 20, nd the critical points of the given function and classify each as a relative maximum, a relative minimum, or a saddle point. 1. f(x, y) 5 x2 y2 3. f(x, y) xy 5. f(x, y) 1 1 1 x y xy 2. f(x, y) 2x2 3y2 4. f(x, y) x2 2y2 xy 14y 6. f(x, y) xy 8 8 x y

7. f(x, y) 2x3 y3 3x2 3y 12x 4 8. f(x, y) (x 1)2 y3 3y2 9y 5 9. f(x, y) x3 y2 6xy 9x 5y 2 10. f(x, y) x4 32x y3 12y 7 11. f(x, y) (x2 2y2)e1x y
2 2

12. f(x, y) (x 4) ln (xy) 14. f(x, y) x x2 y2 4

13. f(x, y) x3 4xy y3 15. f(x, y) e(x y 6y)

16. f(x, y) 2x4 x2 2xy 3x y2 2y 5 17. f(x, y) 1 2 2 x y 3x 2y 1 18. f(x, y) xye

9y 16x288
2 2

19. f(x, y) x ln
RETAIL SALES

y2 3x xy2 x

20. f(x, y) 4xy 2x4 y2 4x 2y

21. A T-shirt shop carries two competing shirts, one endorsed by Michael Jordan and the other by Shaq ONeal. The owner of the store can obtain both types at a cost of $2 per shirt and estimates that if Jordan shirts are sold for x dollars apiece and ONeal shirts for y dollars apiece, consumers will buy approximately 40 50x 40y Jordan shirts and 20 60x 70y ONeal shirts each day. How should the owner price the shirts in order to generate the largest possible prot?

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547

PRICING

22. The telephone company is planning to introduce two new types of executive communications systems that it hopes to sell to its largest commercial customers. It is estimated that if the rst type of system is priced at x hundred dollars per system and the second type at y hundred dollars per system, approximately 40 8x 5y consumers will buy the rst type and 50 9x 7y will buy the second type. If the cost of manufacturing the rst type is $1,000 per system and the cost of manufacturing the second type is $3,000 per system, how should the telephone company price the systems to generate the largest possible prot? 23. Suppose you wish to construct a rectangular box with a volume of 32 ft3. Three different materials will be used in the construction. The material for the sides costs $1 per square foot, the material for the bottom costs $3 per square foot, and the material for the top costs $5 per square foot. What are the dimensions of the least expensive such box? 24. A farmer wishes to fence off a rectangular pasture along the bank of a river. The area of the pasture is to be 6,400 yd2, and no fencing is needed along the river bank. Find the dimensions of the pasture that will require the least amount of fencing. 25. A dairy produces whole milk and skim milk in quantities x and y gallons, respectively. Suppose that the price of whole milk is p(x) 100 x and that of skim milk is q(y) 100 y and assume that C(x, y) x2 xy y2 is the joint-cost function of the commodities. What should x and y be to maximize prot? 26. Repeat Problem 25 for the case where p(x) 20 5x, q(y) 4 2y, and C(x, y) 2xy 4. 27. Consider an experiment in which a subject performs a task while being exposed to two different stimuli (for example, sound and light). For low levels of the stimuli, the subjects performance might actually improve, but as the stimuli increase, they eventually become a distraction and the performance begins to deteriorate. Suppose in a certain experiment in which x units of stimulus A and y units of stimulus B are applied, the performance of a subject is measured by the function f(x, y) C xye1x y
2 2

CONSTRUCTION

CONSTRUCTION

RETAIL SALES

RETAIL SALES RESPONSE TO STIMULI

where C is a positive constant. How many units of each stimulus result in maximum performance?
SOCIAL CHOICES

28. The social desirability of an enterprise often involves making a choice between the commercial advantage of the enterprise and the social or ecological loss that may result. For instance, the lumber industry provides paper products to society and income to many workers and entrepreneurs, but the gain may be offset by the destruction of habitable territory for spotted owls and other endangered species. Suppose the social desirability of a particular enterprise is measured by the function D(x, y) (16 6x)x (y2 4xy 40) x 0, y 0

where x measures commercial advantage (prot and jobs) and y measures

548 Chapter 7

Calculus of Several Variables

ecological disadvantage (species displacement, as a percentage). The enterprise is deemed desirable if D 0 and undesirable if D 0. (a) What values of x and y will maximize social desirability? Interpret your result. Is it possible for this enterprise to be desirable? (b) The function given in part (a) is articial, but the ideas are not. Research the topic of ethics in industry and write a paragraph on how you feel these choices should be made.*
PARTICLE PHYSICS

29. A particle of mass m in a rectangular box with dimensions x, y, z has ground state energy E(x, y, z) k2 1 1 1 2 2 2 8m x y z

where k is a physical constant. If the volume of the box satises xyz V0 for constant V0, nd the values of x, y, and z that minimize the ground state energy.
ALLOCATION OF FUNDS

30. A manufacturer is planning to sell a new product at the price of $150 per unit and estimates that if x thousand dollars is spent on development and y thousand dollars 320y 160x is spent on promotion, consumers will buy approximately units of y2 x4 the product. If manufacturing costs for this product are $50 per unit, how much should the manufacturer spend on development and how much on promotion to generate the largest possible prot from the sale of this product? [Hint: Prot (number of units)(price per unit cost per unit) total amount spent on development and promotion.] 31. A manufacturer with exclusive rights to a sophisticated new industrial machine is planning to sell a limited number of the machines to both foreign and domestic rms. The price the manufacturer can expect to receive for the machines will depend on the number of machines made available. (For example, if only a few of the machines are placed on the market, competitive bidding among prospective purchasers will tend to drive the price up.) It is estimated that if the manufacturer supplies x machines to the domestic market and y machines to the foreign market, x y the machines will sell for 60 thousand dollars apiece at home and for 5 20 y x thousand dollars apiece abroad. If the manufacturer can produce the 50 10 20 machines at the cost of $10,000 apiece, how many should be supplied to each market to generate the largest possible prot? 32. A manufacturer with exclusive rights to a new industrial machine is planning to sell a limited number of them and estimates that if x machines are supplied to the x domestic market and y to the foreign market, the machines will sell for 150 6
* A good place to start is the article by K. R. Stollery, Environmental Controls in Extractive Industries, Land Economics, Vol. 61, 1985, page 169.

PROFIT UNDER MONOPOLY

PROFIT UNDER MONOPOLY

Chapter 7 I Section 3

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549

y thousand dollars apiece abroad. 20 (a) How many machines should the manufacturer supply to the domestic market to generate the largest possible prot at home? (b) How many machines should the manufacturer supply to the foreign market to generate the largest possible prot abroad? (c) How many machines should the manufacturer supply to each market to generate the largest possible total prot? (d) Is the relationship between the answers in parts (a), (b), and (c) accidental? Explain. Does a similar relationship hold in Problem 31? What accounts for the difference between these two problems in this respect? thousand dollars apiece at home and for 100
CITY PLANNING

33. Four small towns in a rural area wish to pool their resources to build a television station. If the towns are located at the points (5, 0), (1, 7), (9, 0), and (0, 8) on a rectangular map grid, where units are in miles, at what point S(a, b) should the station be located to minimize the sum of the distances from the towns? 34. In relation to a rectangular map grid, four oil rigs are located at the points (300, 0), (100, 500), (0, 0), and (400, 300) where units are in feet. Where should a maintenance shed M(a, b) be located to minimize the sum of the distances from the rigs? In Problems 35 through 38 plot the given points and use the method of Example 3.6 to nd the corresponding least-squares line. 35. (0, 1), (2, 3), (4, 2) 37. (1, 2), (2, 4), (4, 4), (5, 2) 36. (1, 1), (2, 2), (6, 0) 38. (1, 5), (2, 4), (3, 2), (6, 0)

MAINTENANCE

In Problems 39 through 42, nd the indicated least-squares line y mx b. You may use the formulas given just before Example 3.7.
SALES

39. A companys annual sales (in units of 1 billion dollars) for its rst 5 years of operation are shown in the following table:
Year Sales 1 0.9 2 1.5 3 1.9 4 2.4 5 3.0

(a) Plot these data on a graph. (b) Find the equation of the least-squares line. (c) Use the least-squares line to predict the companys sixth-year sales.
DRUG ABUSE

40. The following table gives the percentage of high-school seniors in four different years who had tried cocaine at least once in their lives.*

* L. Hoffman, S. Paris, and E. Hall, Developmental Psychology Today, McGraw-Hill, Inc., New York, 1994, page 405.

550

Chapter 7

Calculus of Several Variables

Year Percentage Using Cocaine

1975 9.0

1980 15.7

1985 17.3

1990 9.4

(a) Plot these data on a graph. (b) Find the equation of the least-squares line. (c) Use the least-squares line to predict the percentage of high school seniors in the year 2000 who used cocaine at least once.
VOTER TURNOUT

41. On election day, the polls in a certain state open at 8:00 A.M. Every 2 hours after that, an election ofcial determines what percentage of the registered voters have already cast their ballots. The data through 6:00 P.M. are shown below:
Time Percentage Turnout 10:00 12 12:00 19 2:00 24 4:00 30 6:00 37

(a) Plot these data on a graph. (b) Find the equation of the least-squares line. (Let x denote the number of hours after 8:00 A.M.) (c) Use the least-squares line to predict what percentage of the registered voters will have cast their ballots by the time the polls close at 8:00 P.M.
SPREAD OF AIDS

42. Recall that in Problem 40 of Section 1, Chapter 4, we gave the following table for the number of reported cases of AIDS for the period 19841991:
Year 1984 1985 8,249 1986 12,932 1987 12,070 1988 31,001 1989 33,722 1990 41,595 1991 43,672

Cases 4,445

(a) Plot these data on a graph with time t (years after 1984) on the x axis. Find the equation for the least-squares line for the given data. (b) Use the least-squares line to predict the number of cases of AIDS reported in the year 2000. 43. Let f(x, y) x2 y2 4xy. Show that f does not have a relative minimum at its critical point (0, 0), even though it does have a relative minimum at (0, 0) in both the x and y directions. [Hint: Consider the direction dened by the line y x. That is, substitute x for y in the formula for f and analyze the resulting function of x.] In Problems 44 through 47 nd the partial derivatives fx and fy , and then use your graphing utility to determine the critical points of each function. 44. f(x, y) (x2 3y 5)ex 2y
2 2

Chapter 7 I Section 4

Constrained Optimization: The Method of Lagrange Multipliers 551

45. f(x, y)

x2 xy 7y2 x ln y

46. f(x, y) 6x2 12xy y4 x 16y 3 47. f(x, y) 2x4 y4 x2(11y 18)
LEVEL CURVES

48. Sometimes you can classify the critical points of a function by inspecting its level curves. In each case shown in the gure, determine the nature of the critical point of f at (0, 0).

y f = 3 f=1 f = 2 f= 1 2 x f= 1 3 f=3 f=2 f=1 (a) (b) f = 1

y f=3 f=2 f=1 x f = 3 f = 2 f = 1

4
Constrained Optimization: The Method of Lagrange Multipliers

In many applied problems, a function of two variables is to be optimized subject to a restriction or constraint on the variables. For example, an editor, constrained to stay within a xed budget of $60,000, may wish to decide how to divide this money between development and promotion in order to maximize the future sales of a new book. If x denotes the amount of money allocated to development, y the amount allocated to promotion, and f(x, y) the corresponding number of books that will be sold, the editor would like to maximize the sales function f(x, y) subject to the budgetary constraint that x y 60,000. For a geometric interpretation of the process of optimizing a function of two variables subject to a constraint, think of the function itself as a surface in three-dimensional space and of the constraint (which is an equation involving x and y) as a curve in the xy plane. When you nd the maximum or minimum of the function subject to the given constraint, you are restricting your attention to the portion of the surface that lies directly above the constraint curve. The highest point on this portion of the surface is the constrained maximum, and the lowest point is the constrained minimum. The situation is illustrated in Figure 7.20.