Example 2: Find the first through the fifth derivative of the following function.

Solution
f ' ( x) 24 x 3  3
f ' ' ( x) 72 x 2
f ' ' ' ( x) 144 x
f 4 ( x) 144
f 5 ( x ) 0

Example 3. Find the first and second derivatives of the rational function f (x
(x) =

Solution:
First find the first derivative by applying the quotient rule.

The second derivative can also be found by using quotient rule

Check Your Progress Exercise -7

1). Find the second derivative of the function
a).
b).
2). Find the first four derivatives of the following function.
a).

b).

3.10 DERIVATIVES OF EXPONENTIAL AND LOGARITHMIC FUNCTIONS

52
In this section the derivative formulas for logarithmic and exponential functions are discussed.
The simple derivatives of y = x and y = will be discussed first and later we will extend
to any base b.

3.10.1 Log Function Rule

The derivative of the natural logarithmic function y = x is

Let’s proof this formula.

Proof: Using the definition of derivative

Thus the expression to the right of the limit sign above can be converted to the form

From , as x approaches to N, then k will tend to infinity.

Therefore taking the limit of as x approaches N is the same as finding the limit of

Generalizing the above result, we get

53
If x is replaced by some function of x, say f(x), then the generalized rule for finding the
derivative of ln f(x) with respect to x is given as

For bases other than e (i.e. logbx), the rule is as follows

If b = e then

Proof:

logbx =

Generalization the above result

Example 1 Find the derivatives of the following logarithmic functions

a) f(x) = ln 2x
2x

Solution:

f’(x) =

b) f (x ) =
Solution:

c)

54
Solution:

d) f(x) = log2x

Solution: by formula 3.10.1 (c)

e) (x+ x2)
f(x) = log3 (x

Solution: by formula (3.10.1. d)

Check Your Progress Exercise – 8

1. Differentiate the following functions by using logarithmic rule.

3.10.2 Exponential function Rule

Now we learn to differentiate exponential functions of the form .
The derivative of the exponential function y = ex is ex.

We can proof this by using the inverse function rule.

Let y = ex . Then the inverse of this function is x = lny
lny

By inverse function rule

(x) is a differentiable function of x, then the derivative of eh(x)

Generally if h (x h(x)
can be found by
using the following formula.

55
That is the derivative of eh(x) is multiplying eh(x) by the derivative of the exponent h(x).

Note that in y = ex , h (x
(x) = x and h1(x) = 1 hence

Generalizing the above result to any base b, that is, in the form of bh(x), then the derivative can
be found by using the following formula.

- If b = e then the formula will reduce to the above formula. (Since lnb
lnb = lne
lne = 1).
- If h(x) = x, then the derivative of bh(x) = bx is equal to bx ln b. This can be proved as
follows.

Let b = elnb
lnb

bx = exlnb
lnb

Differentiating both sides with respect to x,

Examples 2 Find the derivatives of the following functions by using exponential rules.

a) (x) = ex + 1
f (x
Solution: (x), then f(x) = eh(x)
Solution: Let x + 1 = h (x
f1(x) = h1(x)e
(x)eh(x) = ex+1 --------by rule 3.8.2.b
3.8.2.b

b) f(x) = e4x
Solution: 4x, then f1(x) = h1(x)eh(x)
Solution: Let h(x) = 4x
f1(x) = 4 e4x …… by rule 3.8.2.b

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c) f (x ) =
2x2 + 3x
Solution: Let h(x) = 2x 3x + 1 , h1(x) = 4x
4x + 3
f(x) = eh(x) and f1(x) = h1(x) eh(x) = (4x
(4x + 3) -------- by rule 3.8. 2b

d) f(x) = 5x-2
Solution: Let x – 2 = h (x (x) = 5h(x)
(x), then f (x
f1(x) = h1(x) bh(x) lnb
lnb = (1) 5x-2 ln5 = 5x-2 ln5

e) f (x ) =
Solution: Let x2 – 3x
3x = h(x) h1(x) = 2x
2x – 3 . Therefore, f1(x) = (2x
(2x – 3) ln12.

Check Your Progress Exercise – 9

1. Differentiate the following functions by using exponential rule.

(Hint: use the product rule for question 1g).

3.11 EXAMPLES ON ECONOMIC APPLICATIONS

The aim of this section is to illustrate the application of differential calculus in solving
economic problems. Finding the marginal revenue and marginal cost from their total cost
function are discussed. In addition how to find the point elasticity demand or supply for a
good is presented. Let us see the importance of derivatives in solving such kind of problems
by taking different examples.

Example 1: If the total revenue function is given as follows: TR = 15Q – Q 2 , where Q is the
level of output, find the marginal revenue (MR) function.

Solution:

Example 2:
2: Given a total cost function, C = c(Q), the average cost (AC) function can be
found by dividing the total cost by output, Q.

57
Find the rate of change of average cost (AC) with respect to output, Q.

Solution: The rate of change of AC with respect to Q is

Now use the Quotient rule

(Since

From the above result we can derive important relationship between average cost and
marginal cost.

The economic meaning of this is that the slope of the average cost curve will be positive, zero,
or negative if and only if the marginal cost curve lies above, intersects, or lies below the
average cost (Ac) curve.

Example 3: Suppose the demand function for a commodity is given by Q = 75 – p 2 where Q

is the quantity of the commodity and p is the unit price. Then find the point price elasticity of
demand.

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The meaning of this number (i.e. = 1) is as price of a good increase by one percent, then
quantity demanded decreases by the same percent.

Check Your Progress Exercise – 10

1. The total cost function of producing a certain commodity is given as follows:
C(Q 2Q2 + 5Q
C(Q) = 2Q 5Q + 15
a) Find the average cost function
b) Find the marginal cost (MC) function

2. The total revenue from the sale of x units of a commodity is

R(x 0.05x2
R(x) = 50 x – 0.05x
a) Find the marginal revenue function
b) What is the value of the marginal revenue at x = 400

3. If the demand function is given as follows

a) Find

b) Compute when the price is 90.

c) Compute the price elasticity of demand at P = 90

3.12 SUMMARY

This section tries to summarize the important concepts, terms, symbols and formulas of the
unit.

- Derivative:

- Geometric Interpretation of derivative: It is the slope of the tangent line.

- Limits, continuity and differentiability: continuity is a necessary but not a sufficient
condition for differentiability.
- Rules of differentiation

- power rule:

59
 - Constant rule:

- The sum difference rule:

- The product rule:

- The Quotient rule:

- The chain Rule: if y = f(u) and u = f(x)

- The inverse function Rule: if it has an inverse

- Logarithmic function:

If

Exponential function and the rules of differentiation

If , then

If then

If then

If , then

Marginal revenue:

Marginal cost (MC) = where Q is output

Point elasticity, where P is price and Q is quantity of a good

3.13 ANSWERS TO CHECK YOUR PROGRESS EXERCISES

60
Check Your Progress Exercise – 1
a) f1(x) = 3 b) f1(x) = 2x
2x

c) f1(x) = d) f1(x)=8x
)=8x-5

Check Your Progress Exercise - 2

First check whether the conditions for continuity are satisfied and then show that the limit of
the difference quotient does not exist.

Check Your Progress Exercise – 3

b)

c) d) f1(x) = 1

Check Your Progress Exercise - 4

1. 2.

Check Your Progress Exercise - 5

1.

61
2) a) Since for all x, it is a monotonically increasing function. Its inverse function

is x = 2 (y
(y – 3)
a) This function is not monotonic. Because it is not a one-to- one mapping. It does not
have an inverse and the inverse function rule cannot be applied.

Check Your Progress Exercise - 6

a) ∞ b) 1 c) 0 d) -1/6

Check Your Progress Exercise - 7

1 a) b)
2.a). b).

Check Your Progress Exercise - 8

Check Your Progress Exercise – 9

62
Check Your Progress Exercise – 10

1. a) AC = 2Q + 15/Q + 5 b) MC = 4Q + 5

2. a) MR = 50 – 0.1x b) MR = 10

3. c) = -0.9

3.14 MODEL EXAMINATION QUESTIONS

1. Find the first derivatives of the following functions

a) b)

c) d)

e) f)

g) h)

i) j)

k) l)

m) n)

o)

63
2) Compute the derivative dy/
dy/dx for the given value of x.

a)

b)
c)

3) Let f (x)=/x
)=/x/. Show that continuity does not imply differentiability at x = 0.
4) Are the following functions monotonic?

a) b)

c) Find dx/
dx/dy for each monotonic functions (apply the inverse function rule)
5) Suppose y is a differentiable function of x. Express the derivative of the given function
with respect to x interms of x, y, and dy/
dy/dx

a) y3 b) 2x3y4
6) Find the derivatives of the following exponential and logarithmic functions.

a) b)

c) d)

e) f)

g) h)

i) j)

k) l) ( for x > 0)

7) Given the average cost function AC= q2-4q+214, find the marginal cost (MC) function?

8) The gross national product (GNP) of a certain country was N(t )=t2+5t
N(t)=t +5t+106 billion birr
t years after 1980

a) At what rate was the GNP changing with respect to time in 1988?

64
 b) At what percentage rate was the GNP changing with respect to time in 1988?

9) Suppose a revenue function R is given by R(x 40x-x2 , for 0<x

R(x)= 40x 0<x<40
Find the marginal revenue at x =10.

10) At a certain factory, the daily output is Q=3,000K 1/2 L1/3 units, where K denotes the
firms capital investment measured in units of birr 1,000 and L denotes the size of the labor
force measured in worker-hours. Suppose that the current capital investment is birr
400,000 and that 1,331 worker hours of labor are used each day. Use marginal analysis to
estimate the effect that an additional capital investment of birr 1,000 will have on the daily
output if the size of the labor force is not changed.

11) Given the total cost function as and the price is given by

, find the marginal cost and the marginal revenue.

12) Suppose the demand q and price p for a certain commodity are related by the equation
p = 60-2q
60-2q ( for )
a) Express the elasticity of demand as a function of q.
b) Calculate the elasticity of demand when q =10. Interpret your answer
3.15 REFERENCES

1. Barnett, Naymod A., and Ziegier, Vichael R.; Applied calculus for Business, Economics,
sciences, 6th ed..
Life sciences, and social sciences,
2. Economics, 3rd ed.
Chiang, Alpha C. : Fundamental methods of Mathematical Economics,
3. Applications, 5th ed.
Hoffmann, Laurence D., and Bradcey, Gerald L.: Brief calculus with Applications,
4. Hunt, Richard A.: Calculus, 2nd ed.
5. Stancl, Donald L., and Stancl, Mildred L.: Calculus for management and the life and
sciences, 2nded.
social sciences,

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