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H17 Multivariable Functions

This document discusses multivariable functions and provides several examples: 1) Multivariable functions depend on more than one independent variable and are used to model phenomena that depend on multiple factors, like economics. The compound interest formula depends on four variables. 2) A cost function for a bike company that produces two models depends on the number of units of each model produced. 3) The Cobb-Douglas production function models productivity as a function of labor and capital units. An example function is given for a steel company. 4) Another example cost function is given for a company that produces two bicycle models, with demand and cost equations provided.

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21 views2 pages

H17 Multivariable Functions

This document discusses multivariable functions and provides several examples: 1) Multivariable functions depend on more than one independent variable and are used to model phenomena that depend on multiple factors, like economics. The compound interest formula depends on four variables. 2) A cost function for a bike company that produces two models depends on the number of units of each model produced. 3) The Cobb-Douglas production function models productivity as a function of labor and capital units. An example function is given for a steel company. 4) Another example cost function is given for a company that produces two bicycle models, with demand and cost equations provided.

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Academias Saber Más
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Multivariable Functions

(You can find more information about this in Section 7.1 of the textbook.)

Most phenomena in real life and in Economics, in particular, depend on more than one
variable. It makes sense to study functions that have more than one independent variable.

r mt
The compound interest formula is a function of several variables: A = P (1 + m) depends
on four variables!

Example: A company produces two kinds of bicycles, a woman’s model and a man’s model.
Let’s suppose that x = number of units of woman’s model produced and y = number of units
of man’s model produced. The cost function would be a function that would depend on both
variables:
C(x, y) = 2, 000 + 40x + 50y − 0.1xy

(A) Find and interpret C(5, 12).

(B) What would be the cost of producing 30 of each of the two bikes?

(C) What would be the cost of producing 30 units of the woman’s model and 10 units of the
men’s model?

(D) If the number of men’s model bikes produced is fixed at 50, then what is the cost of
producing 10 women’s bikes?

(D) If the number of men’s model bikes produced is fixed at 10, then what is the cost of
producing x women’s bikes?

Example: The Cobb-Douglas production function.

f (x, y) = kxm y n

where k, m and n are positive constants with m + n = 1. Economists use this function
to describe the number of units that can be produced with x units of labor and y units of
capital.

The productivity of a steel-manufacturing company is given approximately by

f (x, y) = 10x0.2 y 0.8

with the utilization of x units of labor and y units of capital.

(A) If the company uses 3,000 units of labor and 1,000 units of capital, how many units will
be produced?

(B) If the company decides to double the units of labor and capital used, what is the effect
on productivity?

1
Example: (Exercise 58, page 451) A company manufactures 10- and 3-speed bicycles. The
weekly demand and cost equations are:

p = 230 − 9x + y

q = 130 + x − 4y

C(x, y) = 200 + 80x + 30y

where p is the price of a 10-speed bicycle, q is the price of a 3-speed bicycle, x and y are the
units of 10-speed and 3-speed models demanded respectively and C(x, y) is the cost function.

Find the weekly revenue and profit functions and evaluate them at x = 10 and y = 15.

Example: (Based on Exercise 62, page 451) Given the following rectangular box:

(A) If the cost of the material is $0.1 per square inch, find the cost function.

(B) Find a function to determine the volume of the box.

(C) Find three different combinations of length, depth and height that will give an overall
volume of 500 cubic inches and calculate their costs.

Exercises: Pages 449-451: 25, 28, 37, 39, 57.

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