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Tutorial 3 - Derivative of Univariable Functions

This document provides an overview of key economic concepts related to derivatives and their applications. It includes definitions of important terms, examples of calculating derivatives of various functions, and applications of derivatives to concepts like marginal revenue, cost, and profit. It also discusses elasticity and how to calculate it from demand and supply functions.

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Ибрагим Ибрагимов
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92 views

Tutorial 3 - Derivative of Univariable Functions

This document provides an overview of key economic concepts related to derivatives and their applications. It includes definitions of important terms, examples of calculating derivatives of various functions, and applications of derivatives to concepts like marginal revenue, cost, and profit. It also discusses elasticity and how to calculate it from demand and supply functions.

Uploaded by

Ибрагим Ибрагимов
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Mathematics for Economic Analysis, 4ECON007C Semester 1, 2017-2018

Tutorial 3 Derivative of Univariable Functions

Key terms Notes Key terms Notes


Derivate Marginal revenue
Slope Marginal cost
Constant rule Marginal profit
Sum/Difference rule Production function
Product rule Marginal product of labor
Quotient rule Marginal product of capital
Chain rule Price elasticity of demand
Lopital rule Price elasticity of supply

Section Mathematics

1) Define the derivative of a function. Explain by giving your own example(s).

2) Indicate the points where a function has no derivative:

3) Find and interpret the slope of the straight line passing through:
a) A(1; 3) and B(3; 11) bH) C(1; 3) and D(4; 2)

4) The graph of the function y = f (x) is


given at the right.
a) Is the function continuous?
b) Is the function bounded?
c) Is it true: lim+ f ( x) = lim- f ( x) ?
x3 x3

d) lim f x ?
x

e) lim f x ?
x7

f) f '(0) = ? g) f '(3) = ?
h) Is it true: f '(8) < 0

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Mathematics for Economic Analysis, 4ECON007C Semester 1, 2017-2018

5)
a) If f (x) = x2 6x + 8, evaluate f '(3). What does it inform us about the graph of y = f (x) at x = 3?

b) Are the given functions continuous at the given points?


x6
1) f ( x) ; x 6, x 5, x 0
x5
2x 1
2) f ( x) ; x 1, x 1, x 2
x^2 1

6) Differentiate:
a) f (x) = 2x3 6x2 + 49x 54 b) f (x) = 4x 3/x + 7/x2 c) f (x) = x(x 3)4
d) f (x) = x/(x2 + 1) eH) f (x) = 200(3 4x5)(2x3 + 5x) f) f (x) = 4(3x 2/x3 + e)2
gH) f (x) = x2 + x + 1/x hH) f (x) = x2ln(2x) + ex iH) f (x) = 100(10 x2)(2x 1)

7) Differentiate the implicit functions:


a) 2y + 5x 3 = 0 b) 4x2 y3 = 97 cH) x4y6 = 15 dH) 2x3 + 5xy + 6y2 = 87

8H) The function y(x) is given implicitly as: y3x 3y = x3 + y + 24. Find y'(0).

x+3 - 2 x2
9) Calculate the limits: a) lim b) lim
x1 x -1 x 2 x

Section Economics

10) Find the marginal functions: a) MR for TR = 50Q 3Q2 bH) M for = 2Q3 + 15Q2 24Q 3

11) If the inverse demand function is P = 100 4Q, find TR and MR in terms of Q. Estimate the change in
TR brought by a 0.3-unit increase in output from a current level of 12 units. (Hint: MR = TR/Q)

12H) If the inverse demand function is P = 80 3Q, prove that MR = 2P 80.

13) The fixed costs of producing a good are 100 and the variable costs are 2 + Q/10 per unit.
a) Find expressions for TC and MC.
b) Evaluate MC at Q = 30 and hence estimate the change in TC brought about by a two-unit increase in
output from a current level of 30 units.

14H) If the average cost function of a good is AC = 15/Q + 2Q + 9, find an expression for TC. What are
the fixed and unit variable costs in this case? Write down an expression for the marginal cost function.

15) A firms production function is Q = 50L 0.01L2 where L denotes the size of the workforce. Find the
value of MPL in the case when a) L = 1; b) L = 10; c) L = 100; d) L = 1,000. Discuss the implications of
these results.

16H) A firms production function is given by Q = 5L0.5 0.1L


a) Find the expression for the marginal product of labor.
b) Solve the equation MPL = 0 and briefly explain the significance of this value of L.

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Mathematics for Economic Analysis, 4ECON007C Semester 1, 2017-2018

17) Find the price elasticity of demand at P = 6 for the following demand functions:
a) P = 30 2Q bH) P = (100 2Q)1/2

18) Write down the expression for dQ/dP when the supply equation is given by Q = 0.1P2 + 4. Calculate
the elasticity of supply at Q = 14.

19H) Consider the demand function Q = 48 P2. For which price will there be unit elasticity?

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