758 ● Chapter 10 Applications of Derivatives

Section Key Terms Formulas

10.3 Absolute extrema

Average cost C(x) ! C(x)!x
Profit maximization
Competitive market R(x) ! p % x where p ! equilibrium price
Monopolistic market R(x) ! p % x where p ! f(x) is the demand function

10.4 Inventory cost models

10.5 Asymptotes
Horizontal: y ! b f(x) S b as x S & or x S "&
Vertical: x ! c y unbounded near x ! c
For rational function Vertical: x ! c if g(c) ! 0 and f(c) % 0
y ! f(x)!g(x) Horizontal: Key on highest-power terms of f(x) and g(x)

Review Exercises
In Problems 1–4, find all critical points and determine In Problems 14 and 15, find any relative maxima, rela-
whether they are relative maxima, relative minima, or tive minima, and points of inflection, and sketch each
horizontal points of inflection. graph.
1. y ! "x2 14. y ! x3 " 12x
2. p ! q2 " 4q " 5 15. y ! 2 # 5x3 " 3x5
3. f(x) ! 1 " 3x # 3x2 " x3 16. Given R ! 280x " x2, find the absolute maximum
3x and minimum for R when (a) 0 $ x $ 200 and
4. f(x) ! 2
x #1 (b) 0 $ x $ 100.
x3
In Problems 5–10: 17. Given y ! 6400x " 18x2 " , find the absolute
(a) Find all critical values, including those at which f!(x) 3
is undefined. maximum and minimum for y when (a) 0 $ x $ 50 and
(b) Find the relative maxima and minima, if any exist. (b) 0 $ x $ 100.
(c) Find the horizontal points of inflection, if any exist. In Problems 18 and 19, use the graphs to find the fol-
(d) Sketch the graph. lowing items.
5. y ! x3 # x2 " x " 1 (a) vertical asymptotes
6. f(x) ! 4x3 " x4 (b) horizontal asymptotes
15 3 (c) lim f(x)
7. f(x) ! x3 " x2 " 18x # xS $#
2 2
(d) lim f(x)
8. y ! 5x7 " 7x5 " 1 xS "#

9. y ! x2!3 " 1 18. y

10. y ! x2!3(x " 4)2

11. Is the graph of y ! x4 " 3x3 # 2x " 1 concave up or y = f (x)
concave down at x ! 2? 2

12. Find intervals on which the graph of y ! x4 " 2x3 "

12x2 # 6 is concave up and intervals on which it is
x
concave down, and find points of inflection. –2 2 4
13. Find the relative maxima, relative minima, and points
of inflection of the graph of y ! x3 " 3x2 " 9x # 10.
 Review Exercises ● 759

19. y In Problems 27 and 28, f!(x) and its graph are given.
(a) Use the graph of f!(x) to determine (estimate) where
y = f(x) 4
the graph of f(x) is increasing, where it is decreasing,
and where it has relative extrema.
2
(b) Use the graph of f!(x) to determine where f &(x) " 0,
where f &(x) ! 0, and where f &(x) ' 0.
x (c) Verify that the given f(x) has f!(x) as its derivative,
−2 2 4
and graph f(x) to check your conclusions in (a).
−2
(d) Calculate f &(x) and graph it to check your conclu-
sions in (b).
x3
27. f ¿(x) ! x2 # 4x " 5 afor f(x) ! # 2x2 " 5xb
In Problems 20 and 21, find any horizontal asymptotes 3
and any vertical asymptotes. 10
3x # 2 x2
20. y ! 21. y !
2x " 4 1 " x2
-10 6
In Problems 22–24:
(a) Find any horizontal and vertical asymptotes.
(b) Find any relative maxima and minima.
(c) Sketch each graph. -15
3x 8(x " 2)
22. y ! 23. y ! x4
x#2 x2 28. f ¿(x) ! 6x2 " x3 afor f(x) ! 2x3 " b
x2 4
24. y !
x"1 50

In Problems 25 and 26, a function and its graph are given.

(a) Use the graph to determine (estimate) x-values where
f!(x) " 0, where f!(x) ! 0, and where f!(x) ' 0.
(b) Use the graph to determine x-values where f &(x) " 0, -4 8
where f &(x) ! 0, and where f &(x) ' 0.
(c) Check your conclusions to (a) by finding f!(x) and
-20
graphing it with a graphing utility.
(d) Check your conclusions to (b) by finding f &(x) and In Problems 29 and 30, f &(x) and its graph are given.
graphing it with a graphing utility. (a) Use the graph to determine (estimate) where the
25. f(x) ! x3 " 4x2 # 4x graph of f (x) is concave up, where it is concave
2 down, and where it has points of inflection.
(b) Verify that the given f (x) has f &(x) as its second
derivative, and graph f(x) to check your conclusions
-2 5 in (a).
x3
29. f –(x) ! 4 " x afor f(x) ! 2x2 " b
6
6
-3

26. f(x) ! 0.0025x4 # 0.02x3 " 0.48x2 # 0.08x # 4

40 -4 8

-20 20 -4

-60
760 ● Chapter 10 Applications of Derivatives

x3 x4 MP
30. f –(x) ! 6 " x " x2 afor f(x) ! 3x2 " " b
6 12
50
10

Dollars per unit

25

-6 6
x
200 400 600

–25
-10

Units
A P P L I C AT I O N S
38. Productivity—diminishing returns Suppose the pro-
In Problems 31–36, cost, revenue, and profit are in dol-
ductivity P of an individual worker (in number of items
lars and x is the number of units.
produced per hour) is a function of the number of hours
31. Cost Suppose the total cost function for a product is
of training t according to
C(x) ! 3x2 # 15x # 75
95t2
P(t) ! 5 #
How many units will minimize the average cost? Find t2 # 2700
the minimum average cost.
Find the number of hours of training at which the rate
32. Revenue Suppose the total revenue function for a of change of productivity is maximized. (That is, find
product is given by the point of diminishing returns.)
R(x) ! 32x " 0.01x2 39. Output The figure shows a typical graph of output y
(a) How many units will maximize the total revenue? (in thousands of dollars) as a function of capital invest-
Find the maximum revenue. ment I (also in thousands of dollars).
(b) If production is limited to 1500 units, how many (a) Is the point of diminishing returns closest to the
units will maximize the total revenue? Find the point at which I ! 20, I ! 60, or I ! 120?
maximum revenue. Explain.
(b) The average output per dollar of capital investment
33. Profit Suppose the profit function for a product is is defined as the total output divided by the amount
P(x) ! 1080x # 9.6x2 " 0.1x3 " 50,000 of capital investment; that is,
f(I)
Find the maximum profit. Average output !
I
34. Profit How many units (x) will maximize profit if
R(x) ! 46x " 0.01x2 and C(x) ! 0.05x2 # 10x # 1100? Calculate the slope of a line from (0, 0) to an arbi-
trary point (I, f(I)) on the output graph. How is this
35. Profit A product can be produced at a total cost of slope related to the average output?
C(x) ! 800 # 4x, where x is the number produced and (c) Is the maximum average output attained when the
is limited to at most 150 units. If the total revenue is capital investment is closest to I ! 40, to I ! 70,
given by R(x) ! 80x " 14x2, determine the level of pro- or to I ! 140? Explain.
duction that will maximize the profit.
y
36. Average cost The total cost function for a product is
C ! 2x2 # 54x # 98. How many units must be pro- 700
duced to minimize average cost? 600
500
37. Marginal profit The following figure shows the graph
400 y = f (I )
of a marginal profit function for a company. At what
level of sales will profit be maximized? Explain. 300
200
100
I
20 40 60 80 100 120 140
 Review Exercises ● 761

40. Revenue MMR II Extreme Bike Shop sells 54 basic- 47. Population Population estimates show that the equa-
style mountain bikes per month at a price of $385 each. tion P ! 300 # 10t " t2 represents the size of the
Market research indicates that MMR II could sell 10 graduating class of a high school, where t represents the
more of these bikes if the price were $25 lower. At what number of years after 2005, 0 $ t $ 10. What will be
selling price will MMR II maximize the revenue from the largest graduating class in the next 10 years?
these bikes?
48. Night brightness Suppose that an observatory is to be
41. Profit If in Problem 40 the mountain bikes cost the built between cities A and B, which are 30 miles apart.
shop $200 each, at what selling price will MMR II’s For the best viewing, the observatory should be located
profit be a maximum? where the night brightness from these cities is mini-
mum. If the night brightness of city A is 8 times that of
42. Profit Suppose that for a product in a competitive
city B, then the night brightness b between the two
market, the demand function is p ! 1200 " 2x and the
cities and x miles from A is given by
supply function is p ! 200 # 2x, where x is the num-
ber of units and p is in dollars. A firm’s average cost 8k k
function for this product is b! #
x2 (30 " x)2
12,000 where k is a constant. Find the best location for the
C(x) ! # 50 # x
x observatory; that is, find x that minimizes b.
Find the maximum profit. (Hint: First find the equilib- 49. Product design A playpen manufacturer wants to
rium price.) make a rectangular enclosure with maximum play area.
To remain competitive, he wants the perimeter of the
43. Profit The monthly demand function for x units of a
base to be only 16 feet. What dimensions should the
product sold at $p per unit by a monopoly is p !
playpen have?
800 " x, and its average cost is C ! 200 # x.
(a) Determine the quantity that will maximize profit. 50. Printing design A printed page is to contain
(b) Find the selling price at the optimal quantity. 56 square inches and have a 34-inch margin at the bot-
tom and 1-inch margins at the top and on both sides.
44. Profit Suppose that in a monopolistic market, the
Find the dimensions that minimize the size of the page
demand function for a commodity is
(and hence the costs for paper).
x2
p ! 7000 " 10x " 51. Drug sensitivity The reaction R to an injection of a
3 drug is related to the dose x, in milligrams, according to
where x is the number of units and p is in dollars. If a x
company’s average cost function for this commodity is R(x) ! x2 ¢500 " ≤
3
40,000
C(x) ! # 600 # 8x The sensitivity to the drug is defined by dR!dx. Find
x
the dose that maximizes sensitivity.
find the maximum profit.
52. Federal tax per capita For the years from 1970 to
45. Reaction to a drug The reaction R to an injection of 2005, the federal tax per capita T (in dollars) can be
a drug is related to the dose x (in milligrams) accord- modeled by the function
ing to
T(x) ! "0.1384x3 # 9.660x2 # 27.17x # 1005
x
R(x) ! x2 ¢500 " ≤ where x is the number of years past 1970. (Source:
3 Internal Revenue Service)
Find the dose that yields the maximum reaction. (a) When does the rate of change of federal tax per
capita reach its maximum?
46. Productivity The number of parts produced per hour (b) On a graph of T(x), what feature occurs at the
by a worker is given by x-value found in (a)?
N ! 4 # 3t2 " t3 53. Inventory cost model A company needs to produce
where t is the number of hours on the job without a 288,000 items per year. Production costs are $1500 to
break. If the worker starts at 8 A.M., when will she be prepare for a production run and $30 for each item pro-
at maximum productivity during the morning? duced. Inventory costs are $1.50 per year for each item
762 ● Chapter 10 Applications of Derivatives

stored. Find the number of items that should be pro- 55. Market share Suppose a company’s percent share of
duced in each run so that the total costs of production the market (actual and projected) for a new product t
and storage are minimum. quarters after its introduction is given by
54. Average cost Suppose the total cost of producing 3.8t2 # 3
x units of a product is given by M(t) !
0.1t2 # 1
C(x) ! 4500 # 120x # 0.05x2 dollars (a) Find the company’s market share when the product
(a) Find any asymptotes of the average cost function is introduced.
C(x) ! C(x)!x. (b) Find any horizontal asymptote of the graph of M(t),
(b) Graph the average cost function. and write a sentence that explains the meaning of
this asymptote.

10 Chapter Test

Find the local maxima, local minima, points of inflection, 10. Use the figure below to complete the following.
and asymptotes, if they exist, for each of the functions in (a) lim f(x) ! ?
xS"&
Problems 1–3. Graph each function. (b) What is the vertical asymptote?
1. f(x) ! x3 # 6x2 # 9x # 3 (c) Find the horizontal asymptote.
2. y ! 4x3 " x4 " 10 y
x2 " 3x # 6
3. y ! 4
x"2
2
In Problems 4–6, use the function y ' 3x5 " 5x3 $ 2.
4. Over what intervals is the graph of this function con- x
cave up? –8 –6 –4 –2 2 4
–2
5. Find the points of inflection of this function. y = f (x)
6. Find the relative maxima and minima of this function. –4
7. Find the absolute maximum and minimum for f(x) !
2x3 " 15x2 # 3 on the interval 3 "2, 84 . 11. If f(6) ! 10, f ¿ (6) ! 0, and f –(6) ! "3, what can we
8. Find all horizontal and vertical asymptotes of the function conclude about the point on the graph of y ! f(x) where
200x " 500 x ! 6? Explain.
f(x) ! .
x # 300 12. Using U.S. Census Bureau data since 1870, the average
9. Use the following graph of y ! f(x) and the indicated number of acres per U.S. farm can be modeled with the
points to complete the following chart. Enter #, ", or 0, function
according to whether f, f ¿, and f – are positive, negative,
or zero at each point. A(t) ! "0.000377t3 # 0.1021t2 " 4.731t # 174.3

Point f f¿ f– where t is the number of years past 1870.

(a) Find the years when the model has a relative max-
A imum and a relative minimum.
B (b) What changes in our society and in the economy
C during the last half of the 20th century have caused
y A(t) to increase then?
6 13. The revenue function for a product is R(x) ! 164x
y = f(x) dollars and the cost function for the product is
4
B C(x) ! 0.01x2 # 20x # 300 dollars
2 C
where x is the number of units produced and sold.
x
-2 2 4 6 8 10 (a) How many units of the product should be sold to
A obtain maximum profit?
(b) What is the maximum possible profit?
-4
 Chapter Test ● 763

14. The cost of producing x units of a product is given by (c) What feature of the graph of the function found in
(a) is the result found in (b)?
C(x) ! 100 # 20x # 0.01x2 dollars
How many units should be produced to minimize aver- Year National Debt ($ trillions)
age cost? 1990 3.2
15. A firm sells 100 TV sets per month at $300 each, but 1991 3.6
market research indicates that it can sell 1 more set per 1992 4.0
month for each $2 reduction of the price. At what price 1993 4.4
will the revenue be maximized? 1994 4.6
16. An open-top box is made by cutting squares from the 1995 4.9
corners of a piece of tin and folding up the sides. If the 1996 5.2
piece of tin was originally 20 centimeters on a side, how 1997 5.4
long should the sides of the removed squares be to max- 1998 5.5
imize the resulting volume? 1999 5.7
17. A company estimates that it will need 784,000 items 2000 5.7
during the coming year. It costs $420 to manufacture 2001 5.8
each item, $2500 to prepare for each production run, 2002 6.2
and $5 per year for each item stored. How many units 2003 6.8
should be in each production run so that the total costs 2004 7.4
of production and storage are minimized? 2005 7.9
18. Modeling The following table gives the national debt, 2006 8.5
in trillions of dollars, for the years 1990–2006.
Source: Bureau of Public Debt, U.S. Department of
(a) Use x as the number of years past 1990 to create a
Treasury
cubic model using these data.
(b) During what year does the model indicate that the
rate of change of the national debt reaches its
minimum?