Cha-3-Differential Calculus-Derivative

Faculty: College of Business, Economics and Social
Science
COURSE TITLE: Calculus for Economists
COURSE CODE: Econ 211
DEPARTMENT: Economics
LEVEL: Undergraduate
CREDIT HOURS: 3
ACADEMIC YEAR: 2022/2023 G.C
SEMESTER: II
COURSE INSTRUCTOR: Haileleul Admasie
E-mail: [email protected]
SKYPE: haileleul.Admasie
CHAPTER-THREE
Differential Calculus
Derivative
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Differential Calculus – Derivative
3.0 AIMS AND OBJECTIVES
• Find the rate of change of an endogenous variable with respect to the exogenous
variable.
• The mathematical concept of derivative is directly related to the notion of rate of

change.
• Will concentrate on functions with a single independent variable.
• An extension of this will be discussed in unit five.
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Differential Calculus – Derivative . . .
3.1 INTRODUCTION
• Will learn the derivative of different types of functions.
 Sum rule
 Difference rule
 Product rule and
 Quotient rule
 Chain rule
 Inverse rules
 Differentiation for exponential functions rule
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derivative?
See definitions in: Finance, Linguistics, Chemistry, Mathematics
adjective
1). imitative of the work of another artist, writer, etc., and usually disapproved of
for that reason.
"an artist who is not in the slightest bit derivative"
Similar: imitative, unoriginal, uninventive, non-innovative, unimaginative
Opposite: original
2). FINANCE
(of a product) having a value deriving from an underlying variable asset.
"equity-based derivative products"
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3.2 RELATIONSHIP BETWEEN DERIVATIVE AND DIFFERENTIATION
What is a Derivative?
• Is a derived function or marginal function
• The original function is called primitive function
• The rate of change of a function
• Derivative is computed by the concept of limit
• The concept of derivative is the basis of calculus

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What is a Differentiation?
• The process of computing the derivatives of a function
• So, you may be asked:
Differentiate
Derive
Find the derivative of . . .

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Importance of the Concept
• In economics understanding the concept of derivative is very useful
• It is applicable in business and economics which are concerned with changes like:
 length,  costs,
 growth,  profits,
 liquidity/Bankruptcy,  etc.
 increasing and decreasing returns,
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• Some of the economic decisions are depends on the following questions:
I. Whether the particular economic activity action would relatively increase to
some body’s benefit than the effort spent for pursuing it.
II. A consumer or a producer (a decision-making agents) may raise the above
question, which is crucial for undertaking final decision that may give a
solution of such economic problem.
III. A wide range application of such concept in economics is the filed of marginal
analysis and optimization. i.e., the marginal rate of change is a change over a
particular small change of a relatedUnityvariable.
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• Most importantly, the derivative functions are important in business and
economics
• Some of the reasons are:
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• Generally, the concept of derivative is required in the analysis of:
 Marginal amounts
 Rates of change (both average and instantaneous)
 Slope of a function at a point
 Slope of a tangent line
 Sketching graphs/curves
 Optimization problems
 Estimation
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The general form of the function
• The general form of the function is y = f (x).
• For a function of the form y = f (x), we can find the average rate of change of y
when change in x, ∆x, is very small.
• Let x changes from x0 to x0 + ∆x, the value of the function y = f (x) changes from f
(x0) to f (x0 + ∆x).

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• The change in y per unit change in x can be represented by the difference
quotient
y
Secant Line
Q or chord
∆y or ∆f
P
f(x)
x0 x
∆x x0 +∆x
Fig: A Difference quotient with a secant

line
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Example 1: Given y = 2x2 – 1
• Find the average rate of change of y.
Solution:
• f(x0) = 2x02 -1 and f(x0 + ∆x) = 2(x0 + ∆x)2 - 1
• The next step is to form the difference quotient

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• The next step is to form the difference quotient
∆𝑦
= f ( x0 + ∆ x)− f ( x 0¿ ¿ =[2( x0 + ∆ x )2 − 1] − [2x 02 −1¿ ¿
∆𝑥 ∆x ∆x
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• Let x0 = 3 and ∆x = 5
• Then the average rate of change of y will be 4(3) + 2(5) = 12 + 10 = 22.
• This means that, on the average, as x changes
from 3 to 8, the change in Y is 22 units per unit
change in x.
• In economics, we are frequently interested in the rate of change of y when
∆x is very small Unity University 17
• In the given example, if the x is very small, it tends to zero, then the difference
quotient
• That is as x approaches zero, will approach to
• Symbolically, as 0
• Or it can be expressed by the equation:
= () =
• This is the derivative of the function y = f(x) = 2x 2 – 1, provided that the limit of
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Notations of Derivative
• f’(x) is read as "f prime of x“

• dy/dx is read as "the derivative of y with
respect to x"
• Therefore, for a function y = f(x), the
derivative may be denoted by
• Steps on how to compute the derivative of f(x), f’(x)
f ( x  h)  f ( x )
I. From the difference quotient (Note that ∆x = h)
h
II. Simplify the difference quotient algebraically to eliminate the factor h from the
denominator.
III. Let ∆x or h approaches zero in the simplified difference quotient.

1 f ( x  h)  f ( x )
f ( x) lim , if this limit exists
h 0 h
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Example 2. Given f (x) = 2x + 3, find f1(x)
• Solution:
f ( x  h)  f ( x )
f (x) = lim
1
h 0 h
f ( x  h)  f ( x) 2( x  h)  3  (2 x  3)
 difference quotient
h h
2 x  2h  3  2 x  3 2h
   2 simplified difference quotient
h h
Now take the limit of 2.
Note: Derivative of a linear function
1 f ( x  h)  f ( x ) is equal to the slope of the curve.
f ( x)  lim lim 2  2
h 0 h h  0 Unity University 22
Example 3: Given f (x) = 2x2 + 3x + 5, find f1(x)
Solution:
• Form the difference quotient
f ( x  h)  f ( x) 2( x  h) 2  3( x  h)  5  (2 x 2  3x  5

h h
2( x 2  2 xh  h 2 )  3 x  3h  5  2 x 2  3x  5

h
4 xh  2h 2  3h h(4 x  2h  3)
   4 x  2h  3
h h
• This is the simplified expression
• Next evaluate the limit of the simplified expression as h approaches zero.
i.e. f1(x) = lim
h 0
(4x + 2h + 3) = 4x + 3
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Class work:
• Find f1(x) for the function: f (x) = x2 - 5x + 9
Answer:
f (x) = x2 - 5x + 9
f (x +h) = (x+h)2 – 5(x+h) + 9
f’(x) = =
=
f’(x) = = = = = 2x-5
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Home work:
• If f(x) =
Answer:
lim f ( x 0  x)  f ( x0) lim
x 0  x  x0
x  0 x  0
x , x
• Rationalizing the numerator we have:
lim
x  0
′ lim x 0  x  x 0 x 1 1
f ( x ) =¿
x  0 lim
x  0
lim

x  0 
x( x 0  x )  x0 x( x 0  x  x 0 ) x 0  x  x 0 2 x 0
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Exam Bank:
Q #1: Find the derivative of using the limit concept:
• Show all the necessary steps
=
• what w should we do if we have radicals in a fraction?
• We need to multiply the top and bottom by the conjugate of the numerator
• So the conjugate can have the same expression
=
= = = = =
• Q #1: Find the derivative of using the limit concept

• Using the same concept of above try to do it and the final answer is
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Exam Bank:
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Exam Bank:
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Exam Bank:
Answer:
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Exercise:
• Use the difference quotient steps find the derivative of the following functions.
a) f(x) = 3x + 5
A n sw e r
b) f(x) = x2 + 1
a ) f 1 (x ) = 3 b) f1(x) = 2x
c) f(x) = 1/x
1 1 1
c ) f (x) = d ) f ( x ) = 8x - 5
x2
d) f(x) = 4x2 – 5x + 1 Unity University 36
3.3 GEOMETRIC INTERPRETATION OF THE DERIVATIVE
Derivative: Definition?
Is the slope of the line tangent to the graph of f(x)
It measures the:
slope a line tangent to a curve (evaluated at a point)
the instantaneous rate of change of the original function f(x) at a given point
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A Tangent Line: What is it Exactly?
A straight line that has only single point in common with the curve with a curve
It is NOT just a line that meets the graph at one point
It is the limit of the secant line (a line drawn b/n two points on the graph) as the
distance b/n the two points goes to zero.
A tangent line to a function at a point is the line that best approximates the
function at that point better than any other line.
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y
Tangent Line
P
f(x)
x0 x
Fig: A tangent
line
• This equation gives us a way to calculate

the slope of the tangent line at point x0 Unity University 40
• The derivative f’(x) expresses the slope of the tangent to the curve y = f(x) as a
function of the x coordinate of the point of tangency.
• To say that f is differentiable at a point means geometrically that the curve y = f(x)
has at that point a unique tangent line which is not parallel to the y – axis.
• Therefore, in terms of the derivative, the slope of the function y = f (x) curve at
point A corresponds to the particular derivative value f’(x).

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Example 2: f(x) = x2
 Find the slope of the function at x = 2
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Answer:
Step 1: Find the difference quotient: f ( x  h)  f ( x )  2( x  h)  3  (2 x  3)
h h h
Step 2: Simplify the difference quotient algebraically: 2 x  2h  3  2 x  3 2
 
h
Step 3: Apply the limit of step 2 to find its derivative

• Take the limit of
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Example 3: finding the tangent line of example 1
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Example 4:
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Additional Note on Geometrical Interpretation of the Derivative
Addition 1:
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Addition 2: Geometrical understanding the Graph of f(x) = x 2
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• Summary of the Difference between Average Rate
of Change and Instantaneous Rate of Change
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Which is the slope at point B?
Derivatives of Single Variable Functions
Tangents
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3. DIFFERENTIABILITY AND CONTINUITY
• Use the concept of limit to see the r/ship b/n continuity and differentiability.
• A function is said to be differentiable at x = c if it has a derivative when x = c.
• If it does not have a derivative at c, we say it is not differentiable at c.
• To be differentiable at a point, a function must be:
a. continuous at that point and

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• But continuity is not a sufficient condition for differentiability.
• Differentiation can only be applied to functions whose:

 graphs look like straight lines in the vicinity of the point at which you
want to differentiate.
• It is b/s differentiating is:

finding the slope of the line it looks like
i.e the tangent line to the function we are considering
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• The graph of a differentiable function cannot have:
 a sharp point - corner,
 a cusp or
 a break
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Non-Differentiable Functions
Can we differentiate any function anywhere?
• No tangent line means no derivative.
• When the tangent line is straight vertical the derivative would be infinite and that
is not good either.
• How and when does non-differentiability happen at argument x?
• There are 4 d/t types of functions that do not have derivatives at a certain points
1. Corner
2. Cusp
3. Vertical tangent
4. Discontinuities Unity University 79
1) The function
Why f(x) is not differentiable at x = 0?

• If x < 0, the derivative is -1
• If x > 0, the derivative is 1
• What is the derivative at x = 0?
a). Corner or kink • Since the left derivative does not equal
- f(x) has a corner or kink like the the right derivative, the derivative
letter V has doesn’t exist
- f(x) is continuous at x = 0 • You can apply the limit concept to it
- f(x) has no tangency at x = 0 Unity University 80
• This is called a corner
• - find f’(0)
Answer:
f’(x) =
f’(0) = = = =
Absolute value rule

= = -1
= =1
The limit DNE which implies that
• f(x) is not differentiable at x = 0
• f(x) has no slope at x = 0
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2) The function
𝒚
• What is the derivative when x < 0? –ve
• What is the derivative when x > 0? +ve
𝒙 • What is the derivative when x = 0?
b). Cusp • Since the left derivative does not equal
- f(x) is continuous at x = 0 the right derivative, the derivative
doesn’t exist
- There's no way to define a slope
at this point • This is called a cusp
- No tangent at x = 0
- f(x) is not differentiable at x = 0
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3) The function
𝑦
• What is the derivative when x < 0? +ve
𝒙 • What is the derivative when x > 0? +ve
• What is the derivative when x = 0?
• It looks like a vertical line which is
c). Vertical tangent undefined
- f(x) is continuous at x = 0
- Straight vertical tangent line
- Infinite derivative
- f(x) is not differentiable at x = 0
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4) Any type of function
Ex 1: Ex 2: Ex 3:
c).
- The 1st function is discontinuous at x = 2
- The function is not differentiable at x = 2
- The 2nd and 3rd functions are discontinuous at x = 0
- These 2 functions are not differentiable at x = 0
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Ex 1: Show that the function f(x) = /x/ is continuous at x = 0 but not differentiable at x =
0
Solution:
Step 1: Check continuity first
I. f(0) islim
defined
f(x) exists:
x 0
II. The
• Why the value of the function to the left of zero is zero as any number to the left
of zero is actually negative number?
• This is mainly due to the fact that any number out of the absolute value is positive
• And this case is as x approaches to zero so that it is almost zero
limf(x) = 0
x 0
III. f(0) =
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Step 2: To check its differentiability, take the limit of the difference quotient
• If the limit exists, it is differentiable at x = 0
• If the limit of the difference quotient DNE, f(x) is not differentiable at x = 0
f ( x)  f (0) / x / 0 / x/
lim lim lim
x 0 x 0 x 0 x x 0 x
• Now check both the right and left side limits.

/ x/ x
lim  lim  lim 1 1
x 0 
x x 0 x

x 0
/ x/  x
lim  lim  lim  1   1
x 0 -
x x 0 x x 0
• Since the right & left side limits are not the same we say f is not differentiable at x
=0
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Theorem: A differentiable function is continuous.
•If f(x) is differentiable at x =a, then f(x) is also continuous at x = a
•If f not continuous at x = a, then f is not differentiable at x = a
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Let us make clearer the example
So, 1 given above:
• Absolute value function is piecewise function
Socan
• So we , write it like: and
So, So, and

Therefore,
and and
Therefore,
Therefore, Therefore,
But i.e = =1 = = -1
So the limit from the right is 1, while the limit from the left is −1.
This means the two sided limit does not exist.
That is, the derivative does not exist at
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Take example:
Therefore as the limit doesn’t exist
So the
See using derivative of it:
Therefore, , two different value of f derivative

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Ex 2:
Prove that the function f is given by:
f(x) = is or is not differentiable at x = 1
Solution:
Step 1: Check continuity first
I. f(1) is defined {i.e f(1) = 0}
II. The limit of f(x): = 0
III. f(1) = 0 =
• Therefore, f(x) = is continuous at x =Unity

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 So the
Step 2: Take the limitSolution
of the difference quotient - To check its differentiability
• If the limit exists, it is differentiable at x = 1
 So the
• If the limit of the difference quotient DNE, f(x) is not differentiable at x = 1
Remember the =
abs value rule:
• Now check both the right and left side limits.
Now
= = =1
Now
= = -1
= = =1
• Since the LHL of the difference quotient is not equal to the RHL, f(x) is not differentiable at
x=1 Unity University = = -1 97
Class work:
• Given the function f (x) = /x – 2/ + 1
• Check
a. If f(x) is continuous at x = 2
b. Does f(x) is differentiable at x = 2, why or why not?
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Solution
a). Check the continuity of f(x):

The function is continuous at x = 2 because
i) f(x) is defined
ii) lim f(x) exists

x 2
iii) lim f(2) = f(2) =1

x 2
• This implies the function is continuous at x = 2 because

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b). If f(x) is differentiable at x = 2
• Show that the limit of the difference quotient does or does not exist at x = 2
Remember:
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• Therefore the next step is to check the LHL and RHL of the difference
quotient
• The right and left side limits are not equal to the limit of the difference quotient
• This implies the limit DNE
• Hence it is not differentiable at x = 2 Unity University 101

Class Work
Which of the following is true about the function given below at x =2?
A. Continuous but not differentiable

B. Differentiable but not continuous
C. Both continuous and differentiable
D. Neither continuous nor differentiable
Solution
a). First checking for continuity at x=2
 For the function to be continuous at x=2, we need the two-sided limit ) to exist
and be equal to f(2)
 This is the same as requiring that the two one-sided limits and exst
and are equal to f(2)
 Then =
 And =
 The two limits exits, but they are not equal.
 Therefore, the function is not continuous at x = 2
b). Second checking for differentiability at x=2
 Since the function isn't continuous at x =2, it cannot be differentiable at that point.
 In conclusion, the function is neither continuous nor differentiable at x=2
Simple Quiz:
 Check if the given below function is differentiable
Simple Quiz:
 Check if the given below function is differentiable
 Hint check the continuous and limit of the function
 Hint check the continuous and limit of the function

3.5. RULES OF DIFFERENTIATION
• Up to now we found the derivative of a function by using the steps discussed
earlier
• But it is a tedious process and time –consuming
• There are some general rules for differentiating particular types of function.

• Applying the rules will help to simplify the process
• These rules can be derived by the usual procedure
• They are handy to simplify the task of finding the derivative of a function
• Below are some of the derivative rules we are commonly practicing in calculus

• Applying the rules will help to simplify the process
• These rules can be derived by the usual procedure
• They are handy to simplify the task of finding the derivative of a function
• Below are some of the derivative rules we are commonly practicing in calculus


1. Constant Function Rule
The derivative of a constant function y = f(x) = k is zero.
dy dk 1
0 or 0 or f ( x) 0
dx dx
Proof:
Ex 1:- Ffor
inany derxivwe
d thxeand ve offxf (x
atihave )x =
k3.and
Solu x: xf1( xf)(=x) 00
y tiof n
2 . T ey power Rule

h
.Hence for any x 0 and,
x
For any number n, the derivative of a power function f(x) =
’ lim y
consequently, f (x)d= x n 00 .n  1
i.e. ( x )
x nx Unity University 108

consequently, f’(x) = lim
0 .
x – Derivative . . .
x  0
1. Constant Function Rule

lim y
lim 7 7
Example
The de1.
rivIf
atf(x)=7;
ive of axco
0nstant 
xfu0nction 
y0= f(x) = k
x x
dy dk 1
 0 or 0 or f ( x) 0
ul e dx dx
nExample
t fE
unxc1
ti:
onFy
in=df(tx
h)e=dkerisivza
etriov
.e of f (x) = 3. Solution:
2:
2. fT
or 1
(h
xe po
)  0wer R u le
of fF(o
x)r =
an3y
. Snoum
lu tib
oenr
: n,f1t(h
x)e=d0
erivative of a power func
d
i.e. ( x n )  nx n  1
ivative of a powedx
r function f(x) = xn is nxn-1
ExDifferential
d the derivative of Calculus
1: Findy = 3. Solution: –f1Derivative
f (x) dk (x) = 0 1 . . .
 0 or 0 or f ( x) 0
2. The pdx
ower Rule dx
n n-1
Fo r a n y n u m b er n, t he d e ri v at i
x 1: Find the derivative of f n(x) = 3. Soluv e of a p o w er fun ct i o n f (x) = x i s n x
• The derivative of the function y = f(x) = x , where n is any real
d n
. Th i.e.e p( o x )w enr 1 Rule
 nx
number dxis equal to nxn-1
oErx 2a. Fn inyd thn
e duermivatib
vee ofrthn e f,ollt
owhineg fduncetir
onisvative of a powe
d 1n d 2 n  12  1
a) fi(x.)e
= .x . Solution
2
) = (nx
(:xf (x) x ) 2 x 2 x
dx dx
x 2.b) F d
f(xi)n
=dx . Stoh
lue
3
tiond
:ef (r
x)i=vat( xi3v
1 e3xo
) 3  1 f th
3x 2 e following
dx
2
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110
d
Before we go to proof it let’s see the following concepts as a
prerequisite
1.
Factorial:
2.
Combination:
3. Binomial
Theorem:

Proof: - Let f x   x is a function and x h, then f ' x  h  0
n lim
x  h n
 x
n
h
But
n n 1 n(n  1) n  2 2 n
x  nx h x h  ...  h
2!
n 1 n 2 2
n nx h n(n  1) x h n n
(x    ...  h  x )
 f ' ( x)  lim 1! 2!
h 0
h Unity University 112
i.e. ( x n )  nx n  1
Differential
dx Calculus – Derivative . . .
Ex 2. Find the derivative of the following functions
2 1 d 2 2 1
a) f(x) = x . Solution: f (x) = ( x ) 2 x 2 x
dx
3 1 d 3 3 1 2
b) f(x) = x . Solution: f (x) = ( x ) 3x 3x
dx
1 1 1
d( x) d
1 1 1 1 1 1
c) f ( x)  x . Solution: f ( x)   (x )  x 2 2
 x  1 
2
dx dx 2 2 2 x
2x 2
25 d 25
1 25 1 24
d) f(x) = x . Solution: f ( x)  ( x )  25 x  25 x
dx Unity University 113
The derivative of a sum (difference) of two functions is the sum (difference) of the individual
derivatives.
If both f1(x) and g1(x) exist then
d d d
 f ( x ) g ( x )  f ( x )  g ( x )  f ( x ) g ( x )
1 1
dx dx dx
Example 3: Find the derivative dy/dx for each of the following functions.
a) f(x) = x2 + 2x
1 dy d 2 d d
Unity University
2
114
Proof: - Let F(x) = f(x) g(x)
lim F ( x  x)  F ( x)
 F ' ( x)  x  0 
x
lim [ f ( x  x) g ( x  x)]  [ f ( x) g ( x)]
 x  0 
x
lim f ( x  x)  f ( x) lim g ( x  x)  g ( x)

= x  0 x 0 =
x x
= f’(x)  g’(x) Unity University 115
• Or

• Do same for the difference rule
Differential
d d Calculusd 1– Derivative
 f ( x ) g ( x )  f ( x )  g ( x )  f ( x ) g ( x )
1 ...
dx dx dx
Example 3: Find the derivative dy/dx for each of the following functions.
a) f(x) = x2 + 2x
1 dy d 2 d 2 d
Solution: f ( x)   ( x  2 x)  ( x )  (2 x)
dx dx dx dx
d ( x2 ) d d 2
But  2 x and (2 x)  2 Therefore ( x  2 x)  2 x  2  2( x  1)
dx dx dx
b) f (x) = x3 + x2 + 1
1 d 3 2 d 3 d 2 d
Solution: f ( x)  ( x  x  1)  (x ) 
Unity University (x )  (1) 117
d 2
But  2 x and (2 x)  2 Therefore ( x  2 x)  2 x  2  2( x  1)
Differential
dx dx
b) f (x) = x3 + x2 + 1
1 d 3 2 d 3 d 2 d
Solution: f ( x)  ( x  x  1)  ( x )  ( x )  (1)
dx dx dx dx
d 3 2 d 2 d (1)
But ( x ) 3x and ( x )  2 x by power rule. 0 by cons tan t rule.
dx dx dx
d 3
( x  x 2  1) 3 x 2  2 x
dx
c) f(x) = x5 + x3 + x + 10
Solution:
d 5
f ( x)  ( x  x 3  x  10)
1
dx
( x 3  x 2  1) 3x 2  2 x
Differential
c) f(x) = x5 + x3 + x + 10
Solution:
1 d 5 3
f ( x)  ( x  x  x  10)
dx
d 5 d 3 d d
 ( x )  ( x )  ( x)  (10)
dx dx dx dx
4 2
5 x  3 x  1  0
4 2
5 x  3 x  1
2 1 d 2 d 2 d
d) f(x) = x – 5x. Solution: f ( x)  ( x  5 x)  ( x )  (5 x)  2 x  5
dx
Unity University dx dx 119
4). A constant factor may be taken out side the derivative sign
• That is if f(x) = Cf(x), (C-constant), then f’(x) = Cf’(x).
Proof: - like that of the constant function, we have f(x) = Cf(x);

lim Cf ( x  x)  Cf ( x) lim f ( x  x)  f ( x)
f(x)’ = x  0 C x  0 Cf ' ( x)
x x
2 2
[(2x  x)  ( x) ]
Example
Example: 4:f’(x)
f(x) = 6x2; f(x)= 6= 6x lim
x  0 12 x
x
2 2
lim [( x  x )  ( x) ]
f’(x) = 6 x  0 12 x
x
5). The Product Rule
• The derivative of the product of two (differentiable) functions is equal to the first
function times the derivative of the second function plus the second function times
the derivative of the first function.
d d d
 f ( x) g ( x)  f ( x) g ( x)  g ( x) f ( x)
dx dx dx
1 1
 f ( x) g ( x)  g ( x) f ( x)


Ex 5 Find the derivative of each of the following functions:
a). y =(x + 1) (x2 + 5)
Solution: Let f (x) = x + 1 and g (x) = x2 + 5
• Then f1(x) = 1 and g1(x) = 2x
dy ' '
 f ( x) g ( x)  g ( x) f ( x)
dx
• Substituting the above values we get
dy 2 2 2 2
( x  1)( 2 x)  ( x  5)1  2 x  2 x  x  5 3 x  2 x  5
2 4
b). y = 2x (3x – 2)
2 4
Solution: Let f (x) = 2x and g(x) = 3x – 2
dy d 2 4 2 d 4 4 d 2
 2 x (3x  2)  2 x (3x  2)  (3x  2) (2 x )
dx dx dx dx
2 3 4
 2 x (12 x )  (3x  2)( 4 x)
5 5 5
 24 x  12 x  8 x 36 x  8 x

2
c) y = (x – 5) (1-2x)
(x
2
Solution: Let f(x) = x – 5 and g (x) = 1 – 2x
dy

dx dx
d
 2
( x  5)(1  2 x) 
2 d d 2
( x  5) (1  2 x)  (1  2 x) ( x  5)
dx dx
2
( x  5)(  2)  (1  2 x)( 2 x)
2 2 2
  2 x  10  2 x  4 x   6 x  2 x  10
Note that
• The product rule can be extended to more than two functions
• For instance for the case of three functions: y = f(x) . g(x) . h(x)
dy 1 1 1
 f ( x).g ( x).h( x)  f ( x).g ( x).h( x)  f ( x).g ( x).h ( x)
dx

Ex 6: Find the derivative of the function: y = (3x2 + 2) (3x) (6x + 7)
Solution: Let f (x) = 3x2 + 2, g(x) = 3x and h(x) = 6x + 7
dy d 2 2 d 2 d
(3x)(6 x  7) (3x  2)  (3x  2)(6 x  7) (3x)  (3x  2)(3x) (6 x  7)
dx dx dx dx
dy 2 2
(3x)(6 x  7)(6 x)  (3x  2)(6 x  7)(3)  (3x  2)(3x)(6)
dx
3 2
 216 x  189 x  72 x  42

6). The Quotient Rule
• The derivative of a fraction (quotient) is equal to a fraction whose denominator is
square of the denominator of the given fraction, and the numerator is the
difference between the product of the denominator by the derivative of the
numerator and the product of the numerator by the derivative of the denominator;
• If f(x) and g(x) are two functions, g(x)  0
• Then the derivative of the quotient of two functions (h(x) is
f ( x)
h(x) = ,then
g ( x)
d f x  1 f ' ( x )  f ( x ). g ' ( x )
d f ( xdx ( ) 
) g ( x)f ( x ) g ((x 1
)2  f ( x ) g ( x )
 [ g x )]
2
dx g ( x ) Unity University g ( x) 129
f ( x)
Proof:-Let h(x) =
g ( x)
 f ( x) h( x) g ( x)
 f ' ( x ) h' ( x ) g ( x )  h( x ) g ' ( x ) - - - product rule
h’(x)g(x) = f’(x) - h(x)g’(x)
h’(x) = (f’(x) - h(x)g’(x) )/g(x)
f ( x) This is
f ' ( x)  g ' ( x) b/s
g ( x) f ' ( x). g ( x)  f ( x).g ' ( x)
h’(x) =  h’(x) =
g ( x) Unity University [ g ( x)] 2 130
Or



x 1
Ex 5 y=
x 2
Solution: Let f (x) = x + 1 and g(x) = x – 2. Then
d d
( x  2) ( x  1)  ( x  1) ( x  2)
dy dx dx
 2
dx ( x  2)
( x  2)(1)  ( x  1)(1) x  2  x  1  3
 2
 2
 2
( x  2) ( x  2) ( x  2)

x2  1
Ex 6 y=
1  x2
Solution:
d 2 2 2 d
(1  x ) ( x  1)  ( x  1) (1  x 2 )
dy dx dx

dx (1  x 2 ) 2
(1  x 2 )( 2 x )  ( x 2  1)( 2 x )

(1  x 2 ) 2
2 x (1  x 2  ( x 2  1)) 2 x (1  x 2  x 2  1
 2 2

(1  x ) (1  x 2 ) 2
4x

(1  x 2 ) 2 Unity University 135
x 2  2 x  21
Ex 7 Y
x 3
Solution: d 2 2 d
( x  3) d ( x 2 d 2 x  21)  ( x 2 2 x  21) d ( x  3)
dy
2 x  21)  ( x  2
 21
( x2 x3)dx ( x)  2 x(x 21  )3 )( x  2 x  21)dx ( x  3)
dy dx dx ( x  3)3 dx
dx 3  3
( x  3dx) 2
( x  3)
( x  3)( 2 x d  2)  ( x 2 2 x  21)(1)
 (21 2 2
x )  (2xx 21  ( x1)21
2 x)( 3)()2 x  2()x ( x33) 2 x  21)(1)
3
 dx( x  3) 3
 3) 3 ( x  3)2
( x  3) 2 x 2
 6 x  2 x  6  x  2 x  21 x 2
 6 x  15
2
62  x  2 x  21 2 2
2 x  6xx 2 6 x x 63 15x  2 x  21 x  6 x 
2 2
2 15
3 2 x  21)(1 )  ( x  3) 23  ( x  3) 2
33) ( x (x 33)) ( x  3)
)
x 2  2 x  21 x 2  6 x  15
 2 Unity University 136
( x  3)
2
Ex 8: f ( x )  x
2 2
2 x.(1  x )  x (1) x
; f ' ( x)  2

1 x (1  x ) (1 
Answer:
2
x ; f ' ( x) 
2
2 x.(1  x)  x (1) x  2 x

2
2 2
1 x (1  x) (1  x)
2 2
1  x)  x (1) x  2 x
2
 2
(1  x) (1  x)
7). The Chain Rule - Composite Function:
• Will develop a rule for differentiating function of one variable, which in turn is a
function of a second variable.
• Suppose y is a differentiable function of u and u is a differentiable function of x.
• Then y can be regarded as a function of x and the derivative of y with respect to x
is the derivative of y with respect to u times the derivative of u with respect to x.

dy dy du
• That is, dx  du . dx ………………………
Unity University
Leibniz notation 138
or
• If g is differentiable at x and f is differentiable at g(x), then the composite
function F = f∘g defined by F(x) = f(g(x)) is differentiable at x and F’ is given by
the product F’(x) = f’(g(x)) · g’(x)
• So the chain rule the Chain Rule can be written either in the prime notation
dy dy du
 .
dx du dx
 (f ∘ g)’(x) = f’(g(x))·g’(x)
Or if dy dy du
 y = f(u) and u = g(x), in Leibniz notation:  .
Unity University
dx du dx 139
Or
 The other way of expressing the derivative of a Chain Rule - Composite
Function would be the following:
 If a function Z = f(y) has, at some point Y a derivative Z y
= f’(y), and the
function y =  x  has a corresponding valued of x, the derivative
y'  ' x  , then the composite function Z  f  x  at the given point x

x
also has a derivative, which is equal to

dz dz dy
Z x  f y ( y ) ( x) or
'
 .
dx dy dx
f ( ( x  x))  f ( ( x))
Proof: - By definition f '  x   lim
x  0
x
Let  x   y and  ( x  x)  y  k , then  (x+ x)  y  k
f ( ( x  x)  f ( ( x)) f ( y  k )  f ( y ) k
  . 
x k x
f ( y  k )  f ( y )  ( x  x)   ( x)
= . , but as x  0, k also tends to zero
k x
lim f ( ( x  x))  f ( ( x)) lim f ( y  k )  f ( y ) lim  ( x  x)   ( x)
 x  0 k  0 . x  0 
x k x
= f ‘(y).  ‘(x) =f ‘(  (x)).  Unity
‘(x) University 141
Thus, for instance, if y = f(x),
where x =  (u), and z = z (v) and v = x(t),
then the derivative y’(t) must be calculated by the formula:
y’(t) = f’(x) .  ’ (u) z’ (v) x’ (t)
or
dy dy dx du dv
 . . .
dt dx du dv dt

dy
Ex 1: Find the if y = u2 + 1 and u = 3x –2
dx
Solution: First find dy

du
dy  2u (by power rule)
du
du du
Then find i.e. 3
dx dx
dy dy du
Therefore,  .  2u (3)  6u
dx du dx
dy
Since you are thinking of y as function of x, it is more natural to express as a function of x
dx
Substituting the value of u, we get.
dy
6(3 x  2) 18 x  12
dy
Ex 2: Find if y = u – 5, where u = x3
dx
Solution: dy du
1 and 3 x 2
du dx
dy dy du 2 2
 . 1(3 x ) 3 x
dx du dx
dy dy du
 . 1(3 x 2 ) 3 x 2
dx du dx
Ex 3: Given the function Y = , find ?
Solution:

dy
Ex 4: Find if y = (2x – 5)10
dx
Solution:
 The chain rule is very useful to differentiate such kind of functions.
 Note that the dy/dx can be found by multiplying 2x – 5 ten times.
 But that will be a tedious process.
 The first step is to take the function inside the bracket as one function, say u and appl y the
chain rule.
Let 2x – 5 = u, then y = u10
dy dy du
 .
dx du dx
dy du
10u 9 , 2
du dx
dy
10u 9 ( 2)  20u 9
dx
dy
Substituting the value of u, 2x – 5, we get  20( 2 x  5) 9
dx
Ex 5:- Differentiate the given composite function
Example: - 1) Differentiate the given composite function.
I. If y = 5x2, z = 7y + 3, C Corollary: If y = [f(x)]n , y’ = n[f(x)]n-1. f’(x)
dz dz dy Example: y = (3x2 + 5x + 7)1/2
:.  . 7 10 x 70 x
dx dy dx
II. If x = 10p – p2, p = 0.7y -2
dx dp dx
:.  . 0.7(10  2 p )
dy dy dp

EXERCISE:
E xercise
a): Find the derivative of the function
Solution;
Combining the Power Rule, Chain Rule, and Quotient Rule, we get
so that
= * Unity University = 147

b): Differentiate the function given as; y =
Solution:
In this example we must use the Product Rule before using the Chain Rule:
= +
= (2x+1)
= (2)
= Unity University 148
C. Differentiate y =
Solution
y=
 Apply chain rule to derivate .
 This can be differentiate using the chain rule, which states that:
[f(g(x)] is f’(g(x))g’(x), where f(x)=sec(x) and g(x)= x3
 Let Hence, find
= Unity University 149

 The derivative of sec(u) with respect to u is sec(u)tan(u).
 And the derivative of .
 Therefore
 Now apply all the given derivatives;
= 3
=
8). Inverse Function Rule
• There are rules of finding the derivative of inverse function.
• This rule is applicable if the function has an inverse.
• The function f will have an inverse function, written as x = f-1(y):
 if there is a one - to – one mapping (for monotonic functions).
• A function f(x) is called one-to-one if:
 every element of the range corresponds to exactly one element of the
domain.

• Similar to the Vertical Line Test (VLT) for functions, we have the Horizontal Line Test
(HLT) for the one-to-one property.
The Horizontal Line Test Theorem:
A function is one-to-one if and only if there is no horizontal line that
intersects its graph more than once.
• Given a function f(x), if x1 > x2 and f(x1) > f(x2) then the function f is called an
increasing or monotonically increasing function.
• If x1 > x2 and f(x1) < f(x2), then the function is said to be a decreasing (or
monotonically decreasing) function.
•
• However, for instance “Parabola is Not One-to-one”
• The parabola f(x) = x2 is not one-to-one because it does not satisfy the Horizontal
Line Test.
• Ex: the horizontal line y = 1 and y = 1 intersects the parabola at two points, when
x = −1 and x = 1
• This test states that a function f has an inverse function if and only if every
horizontal line intersects the graph ofUnity
f at most once
University 153
QUESTION:
What is the r/ship b/n derivatives of a function and its inverse?
• The function f (x) = x + 3 from A = {1, 2, 3, 4} to B = {4, 5, 6, 7} can be written

as
• By interchanging the first and second coordinates of each ordered pair, you can
form the inverse function of f.
• This function is denoted by f –1
• It is a function from B to A, and can be written as:

Note that
• The domain of f is equal to the range of f –1, and vice versa, as shown in Figure.
• The functions f and f –1 have the effect of “undoing” each other.
• That is, when you form the composition of f with f –1

or the composition of f –1
with f, you obtain the identity function.
f (f –1(x)) = x and f –1(f (x)) = x

Prove: f (f –1(x)) = x = f –1(f (x)) given the function f (x) = x + 3
Ex: f (x) = x + 3
f –1(x) is: y = x + 3
x=y+3
y=x–3
• Now: Find both f (f –1(x)) and f –1(f (x)) which should both be = x
• f (f –1(x)) = f (x – 3) = x – 3 + 3 = x
• f –1(f (x)) = f –1(x + 3) = x + 3 – 3 = x
• Here are some important observations about inverse functions.
• If g is the inverse function of f, then f is the inverse function of g.
• The domain of f –1
is equal to the range of f, and the range of f –1
is equal to the
domain of f.
• A function need not have an inverse function, but if it does, the inverse function is
unique.
dx 1

• The rule of differentiation is: the dy dy
dx
• This means that the derivative of the inverse function is the reciprocal of the
Or
• Use the following way to find the derivative of inverse functions
When applying chain rule for this we get:
• Hence we can generalize this as follows:

• Ex: Consider the previous example and prove that f (-1)(x) = 1/ f (f –1(x))
• f (x) = x + 3
• f –1(x) is: y = x + 3
x=y+3
y=x–3
• Now: Find f (-1)(x) = dy/dx of the invers function = d(x-3)/dx = 1
• And find f (f –1(x)) = f (x – 3) = 1
• Then: f (-1)(x) = 1 and 1/ f (f –1(x)) Unity

= 1/1 =1
University 159
Ex 1 Given y = 3x + 5, find dx/dy
Solution:
• Since the function is a monotonic function (its slope is positive) an inverse
function exists.
dx 1 1
• Hence the derivative of the inverse function is  
dy dy 3
Ex 2 Given: y = x3 + x; find dx/dy dx
Solution:
dy
• First check whether an inverse function exists dx 3x  1.
2
• This value is greater than zero for any value of x.

• That is, it is a monotonically increasing function and an inverse function exists.
dx 1 1
  2
dy dy 3x  1
Ex 3: If a function f (x) = 2x + cos x, find dx/dy
• First check whether an inverse function exists
Y=
Note that: The inverse function rule is strictly speaking applicable only when the function involved
is a one-to-one mapping. Unity University 161
Ex 4: show that the functions are inverse functions of each other
Solution:
Þ Because the domains and ranges of both f and g consist of all real numbers, you
can conclude that both composite functions exist for all x.
Þ The composition of f with g is given by:
Þ The composition of g with f is given by

 Because f (g(x)) = x and g(f (x)) = x
 You can conclude that f and g are inverse
functions of each other
• To find an equation for the inverse function, let y = f (x) and solve for x in terms of
y

 Other ways of expressing the Inverse Function
 If a function y = f(x) has a derivative f’(x0) 0 at the point x0, then its inverse
x =  (y) also has derivative at the corresponding point:
1
y0 = f(x0), and  ’(y0) = ,
f ' ( x0 )
or
1 d 1
 ’(y0) = or 
f ' ( ( y 0 ) dy dy
( )
dxUnity University 164
 ( y 0  y )   ( y o )
Proof: - By definition  ’ (y0) = lim
y y 1 y1  y 0
0
Let x1k  ( y  y ); x 0a  ( y 0 )
0
Since y and x (f and  ) are inverse functions of one another; it follows that:
 (y0+  y) = k; iff f(k) =y1
 (y0) = a; iff f(a) = y0
The statement y1  yo in the above limit may be replaced by k  a;
k  a 1
Thus  ’(y0) = lim
k a  ' ( x 0 ) lim
k a
f (k )  f (a) f (k ) 
(
k  a
 a 1
 ' ( x 0 ) lim
k a 
 f (a) f (k )  f (a)
( )
1 k  a
 ' ( x0) lim
k a 
f (k )  f (a)
( )
k  a
1
 ' ( y 0 ) 
( y 0 )) f ' ( ( y 0 ))

3.6 THE L H o pital ' s RULE
'
• L‘ Hôpital Rule is a method of Computing the Limit of

indeterminate forms/functions.
• It is pronounced as Lo-ppi-talls rule
I ndeterminate F orms
Indeterminate Forms
• T he Equat ions whose Limit s cannot be det er mined

or t he f or m in which numer at or and denominat or
bot h equals t o 0 or ∞.
• Or t he f ollowing f or ms ar e called indet er minat e

f or ms.
• I ndet er minat e f or ms can be equal t o

 0 
0Unity 
 0
University
00 1 
167 0


Procedure for L’Hôpital’s Rule
f x 
To evaluate the limit: lim g x 
x a
Step 1:
 Check that the limit of f(x)/g(x) as x approaches a is an indeterminate
form of the type 0/0 or ∞/∞.
Step 2:
 Differentiate f and g separately.
Step 3:
 Find the limit of f '(x)/g '(x) as x approaches a.
Step 4:
 If the limit is finite, +∞, or -∞, then it is equal to the limit in question.
Ex 1. Analytically evaluate the following limit:

1 x2
Ex 2: Find the limit of as x→1
1 x
Solution:
Evaluate this limit by factoring, but let’s see the application of the

L H o pital ' s
'
rule.
Since f (x) = -2x and g(x) = -1
1 x2  2x
lim lim lim 2 x 2
x 1 1  x x 1  1 x 1
Ex 3: Find the limit of 2 x  5 as x  

x 1
Solution: f (x) and g (x) becomes infinite as x   ,(  )


= =
Unity University =2 172
EXERCISE:
A):
Solution:
and
• Since both numerator and the denominator are indeterminate we can

apply L‘Hôpital’s Rule:

B):
Solution:
• The given limit is indeterminate because, as x  0+, the first factor (x) approaches
0 while the second factor (ln x) approaches -∞
• Writing x = 1/(1/x), we have 1/x  ∞ as x  0+, so l’Hospital’s Rule gives as:

Repetition:
 On applying L’Hôpital’s Rule one time
 If we get another indeterminate form then L’Hôpital’s Rule can be
applied more times till we get a determinate form
 And then we apply limit on that expression and we get our answer
 That is, if the right-side expression ( ) again falls into or format,
same as the left side expression, we may reapply the rule L’Hôpital’s
( )
 Students must check that the expression has 0/0 or ∞∕∞ form before
applying the rule
 Hence, L’ Hôpital’s Rule can be applied as many times as needed.
 See the below example: Unity University 175
Ex: Analytically evaluate the following limit:
In order to use L’Hôpital’s Rule direct 0

1 cos 0

L’Hôpital’s Rule applies since this
substitution must result in 0/0 or ∞/∞. is an indeterminate form.
02 0
Differentiate the numerator and the

denominator.
d
dx 1  cos x  sin x d
dx x  2
2x
Find the limit of the quotient of the derivatives.
lim sin x
2x lim sin 0
20
 00 This is still an indeterminate form, apply
x 0 x 0 L’Hôpital’s Rule again to the new limit.
Differentiate the new numerator and the

denominator.
d
dx sin x  cos x
d
dx 2 x  2
Find the limit of the quotient of

the second derivatives. lim cos x
 cos 0
2 Unity University 2  12 Since the result is finite or
176
infinite, the result is valid.
x 0
Limitations of L’Hôpital’s Rule
L’Hôpital’s Rule cannot be applied to the finite limit or to the limit which can be
solved simply.
Applying L’Hôpital’s Rule to such limits results in wrong answers.
Example: Limitations cont..
I f we solve t he above limit t hen

x  6 0  6 6
l i m    3
x  0 x  2 0  2 2
Answer comes t o be 3.
But if we apply L’Hôpit al’s Rule t o t he above limit t hen
d
x 6
 x  6 1
lim  lim d
d
x lim  1
x 0 x  2 x 0
 x  2 x 0 1
dx
Answer comes t o be 1, which is wr ong.

3.7 Higher Order Derivatives
In our previous discussion we have considered only the first derivative f ' ( x) of a
function y  f (x)
Next we will see the concept of second derivative, and derivatives of even high
orders.
The derivative of a function is the first derivative.
The derivative of the first derivative is called the second derivative.
 The second derivative of the function f denoted by f ' ' ( x) or d y indicates that
2
dx 2
f (x) has been differentiated with respect to x twice.

If f ' ' ( x) exists for all x values in the domain, the function f (x) is said to be twice
differentiable:
Notation of Second Derivative

 Differential
We call the secoCalculus
nd derivative of–f. Derivative . . .
5 4
 For y  f ( x )  x  3 x  x , the second derivative is given by
y  f ( x )  20 x  36 x . 3 2
Continuing in this manner, we have

f ( x)  60 x  72 x, the third derivative of f
2
f ( x)  120 x  72, the fourth derivative of f

f ( x)  120, the fifth derivative of f .
Ex 1: Find the first and second derivative of the function f (x) = 3x2-5x+15
Solution:
• The first derivative of the function is f ’(x) = 6x-5
• And the second derivative is f '' ( x) = 6
• Since f ' ( x) is a measure of the rate of change of the function f, f ' ' ( x) is also the
'
measure of the rate of change of the first derivative, ( x)
f
• The second derivative can be differentiated with respect to x to produce a third

derivative and so on. Unity University 186
Ex 2: Find the 1st through the 5th derivative of the function: f ( x) 6 x 4  3 x  4
Solution:
' 3
f ( x ) 24 x  3
'' 2
f ( x ) 72 x
'''
f ( x ) 144 x
4
f ( x ) 144
5
f ( x ) 0

1 x
Ex 3. Find the first and second derivatives of the rational function f (x) = 1 x
, ( x 1)
Solution:
• First find the first derivative by applying the quotient rule.

' 2
f ( x) =
(1  x ) 2
• The second derivative can also be found by using quotient rule

4
f ' ' ( x) =
(1  x ) 3
2 20
Ex 4: For y ( x  10 x) , find and
Solution: By the Extended Chain Rule:
• Using the Product Rule and Extended Chain Rule,
y 20( x 2  10 x )19 (2 x  10).
y 20( x 2  10 x )19 2  20(2 x  10) 19( x 2  10 x)18 (2 x  10)


40( x 2  10 x)18 ( x 2  10 x)  19( x  5)(2 x  10)
40( x 2  10 x)18 x  10 x  19(2 x  20 x  50) 
2 2
40( x 2  10 x)18 x  10 x  38 x  380 x  950) 

2 2
y 40( x 2  10 x)18 39 x  390 x  950 .

2
Ex 5: find d4  1
dx 4  x 
Solution:
d2  1 d 2 3
2
 
 x  dx   x 
 2 x
dx
d3  1 d 3 4
3  
 
  2 x   6 x
dx  x  dx
d4  1 d 4 5 24
dx 4  x   dx   6 x  24 xUnity University
 5
x 190
Exercise:
Find the 2nd and 4th derivative of the function:

a).
b).

3.8 Derivatives of Exponential and Logarithmic Functions:
• The derivative formulas for logarithmic and exponential functions
• First will discuss on the simple derivatives of and
• And later we will extend it to any base b

• Before that let us see some of the properties of exponential and logarithmic
functions


3.8.1: Log Function Rule
• The derivative of the natural logarithmic function:
is
d 1
ln x  ..........3.10.1a
dx x
• Let’s proof this formula.

PProof
roof 11:
: UUsing
sing ththe
e dedefinition
finition of dof
eriderivative
vative
f(x+x) f(x)
=
f(x)
=
x x x+x
=
=
Since , then
Now let n =  = = .
As n = or
since , Unity University 196
AsDifferential Calculus – Derivative
n = or ...
since ,
Proof 1: Using the definition of derivative
Now make substitution on the above limit equation: That is:-
= f(x)
f(x+x)
=
= f(x)
=
= highlighted in yellow color is “e” x x x+x
=
= , but
=
=
Since , then
Therefore,
Now let n =  = = .
As Unity University
n =
197
or
Proof 2: The Second and Simplest way
• Derivative of

• 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
d f 1 ( x) m arg inal function
ln f ( x)   ...3.10.1(b)
dx f ( x) Total function
• For bases other than e (i.e. logbx), the rule is as follows

d x 1
log b  ...3.10.1(c)
dx x ln b
1 1 1
• If b = e then   (sin ce ln e 1)
x ln b x ln e x
x
log e 1
• Proof: logbx = log e
b

lnb
lnx (check the log arithmic properties in chapter 1)
d x d  1  1 d 1 1
log b   ln x   ln x   
dx dx  ln b  ln b dx
Unity University ln b  x  199
• Generalization the above result
1
d f ( x) f ( x) 1 If b = e, then the formula will reduce to
log b  . ............................3.10.1(d ),
dx f ( x) ln b
1
Or f ( x)
if b 1, then the formula will reduce to
f ( x)

Ex 1: Find the derivatives of the following logarithmic functions
ba)) ff((xx))==lnln2xx 3 b) f(x) = ln x3
1
’ f (dx ) 2 31x 2
3
S o lu t io n: f (
Solution: f ( x) x )
1 =  3 
)  x3  S......... d 3 x 2
3
x ) ln( x2 x by formula 3ln(
.10 3.1(b)
f (dx
x x o l u t i o n : f 1
( x )  x )  3
 .........by formula 3.10.1(b)
dx x x
c) f ( x)  ln x 2  1
Solution:
= = = =
= .
Therefore, = = Unity University 201

d. Let + ) find its second derivative
Solution:
Let us first do its first derivative
= = =
Unity University
= 202
Then find the second derivative of it
= = =
=
= =
=
EXERCISE:
• Find the 1st derivative of the following function:
a). f(x) = log2x
' 1 1
Solution: f ( x)    by formula 3.10.1 (c) or formula 3.10.1 (d)
ln 2  x
b). f(x) = log25x

d 1 1
Solution: Ex   log 2 5 x   5 
dx 5 x ln 2 x ln 2
c). f(x) = log3 (x+ x2)

1 (1  2 x) 2x  1
f 1 ( x)  .  by formula (3.10.1. d)
Solution: 2 2
ln 3 ( x  x ) ( x  x ) ln 3
3.8.2. Exponential function Rule
x f ( x)
• Now we learn to differentiate exponential functions of the form e or e
• The derivative of the exponential function y = ex is ex
d ex
e x ...............(3.10.2 a )
dx
• We can proof this by using the inverse function rule.
• Let y = ex
• The inverse of the function will be x = log ey = lny
dy
dx 
y dy 1 1
   y e x
dx 1 dx dx 1
 , then Then, by inverse ( ) ( )
dy y dy y
function rule:-
d 2x
Ex 1: Ex   e   e 2 x 2 2e 2 x
dx
• Generally if h (x) is a differentiable function of x, then the derivative of eh(x) can be
found by using the following formula.
d
e h ( x )  h 1 ( x )e h ( x ) ..........(3.10.2.b)
dx
• That is the derivative of eh(x) is multiplying eh(x) by the derivative of the exponent
h(x)
d x x
• Note that in y = e , h (x) = x and h (x) = 1 hence
x 1 e  1 .e
dx
• 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.
d h( x)
b h1 ( x )b h ( x ) ln b..........
Unity University
..(3.10.2.c ) 206
dx
• If b = e then the formula will reduce to the above formula. (Since ln b = 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
• bx = exlnb
• Differentiating both sides with respect to x,
d x d
b  e x ln b
dx dx d
 a x  a x ln a, w/ a  0, 1
ln be x ln b by rule 3.10.2.b. dx
ln b(b x ), sin ce e x ln b b x d
 a u  a u ln a 
du
Therefore , dx dx
d
d
b x ln b(b x ) b x ln b Unity University
Ex 
dx
 2sin x   2
sin x
ln 2 cos x 
207
dx
Ex 2: Find the derivatives of the following functions by using exponential rules
a) f (x) = ex + 1
Solution: Let x + 1 = h (x), then f(x) = eh(x)
f1(x) = h1(x)eh(x) = ex+1 --------by rule 3.8.2.b
b) f(x) = e4x
Solution: Let h(x) = 4x, then f1(x) = h1(x)eh(x)
f1(x) = 4 e4x …… by rule 3.8.2.b
2 x 2  3 x 1
c) f(x) = e
Solution: Let h(x) = 2x2 + 3x + 1 , h1(x) = 4x + 3
h(x) 1 1 h(x)
f(x) = e and f (x) = h (x) e = ( 4x + 3) e 2 x 2  3 x 1
-------by rule
3.8. 2b
Exercise:
• Differentiate the following functions by using exponential rule
a). f(x) = 5x-2
Solution: Let x – 2 = h (x), then f (x) = 5h(x)
f1(x) = h1(x) bh(x) lnb = (1) 5x-2 ln5 = 5x-2 ln5
x 2  3x
b). f(x) = 12
Solution: Let x2 – 3x = h(x)  h1(x) = 2x – 3.
f1(x) = (2x – 3) 12 x ln1Unity

2.University 209
2
 3x

 How do we differentiate a function when both the base and exponent
contain the variable???
 Example: , find the derivative of y with respect to x
 For a function like this we have to use Logarithmic Differentiation
 Procedures to use Logarithmic Differentiation are:
a. Take the natural logarithm of both sides of the equation
b. Use the properties of logarithms to simplify the equation
c. Differentiate (sometimes implicitly!) the simplified equation
Solution:
x
y x
ln y ln x x =x
ln y  x ln x dy
 y ln x  1
dx
d d
ln y    x ln x 
dx dx dy
 x ln x  1
x
Unity University dx 212

3.9 The sign of the Derivative
• You are now well acquainted of what the derivatives of higher orders mean
• From which the second derivative has a special importance.
• Decide if the given function is
an increasing or
decreasing by observing the sign of the derivative of the given function

Conditions:-
a). First order derivative
• If f(x) is a differentiable function at any point and/ or interval, then
I. If then the value of the function tends to increase(or f(x) is an increasing

function at a given point and/or interval or the rate of change of f(x) with
respect to x is positive)
II. If , then the value of the function tends to decrease (or f(x) is decreasing
function at a given point and/or interval); (or the rate of change of f(x) with
b). Second order derivative
I. If , then the slope of the curve tends to increase (positive)
II. If , then the slope of the curve tends to decrease (negative)

a)
C). The possible combination of 1st & 2nd order derivatives & their interpretations
1. If f’(x)>0 and f” (x) >0
 The value of the function is increasing at increasing rate/the slope
of the curve is positive and increasing as the value of x increases/
2. If f’(x)>0 but f”(x) <0
 The value of the function is increasing at decreasing rate/ the slope
of the curve is negative but decreasing as the value of x increases/
3. If f’(x) <0 and f” (x)<0
 The value of the function is decreasing at decreasing rate/the slope
of the curve is negative and decreasing as x increases/
of the curve is negative – Derivative
and decreasing as x increases/ ...
4. If f’(x) <0 but f”(x)>0
 The value of the function is decreasing at an increasing rate/the slope
of the curve is negative but increasing as x increases/
5. What will be the conclusion, if f”(x) =0?
a. Concave and convex curve.
We can distinguish the concavity and convexity of the given
function/curve/ simply by looking at the sign of the second order
derivative. Unity University 217

Hence:-
a. A function is said to be concave up ward (convex down ward) curve, if it increases at
an increasing rate or f” (x)>0.
b. A function is said to be concave down ward/convex up ward) curve, if it increases at a
decreasing rate or f” (x) <0
c. A function can be neither concave nor convex curve at a given point and it is called
point of inflection it is true when f”(x) = 0
Example.
The We can
inflection illustrate
point in diagram
(or point form about
of inflection) concavity,f convexity
of a function is defined&topoint
be theof
point at which the concavity changes.
inflection. Unity University 218
point of inflection it is true when f”(x) = 0 – Derivative . . .
Example. We can illustrate in diagram form about concavity, convexity & point of
y
inflection.
 Curve CGD is concave downward (convex up F -
B-
,
ward), that shows, the function is increasing at a D
decreasing rate because f” (x) <0. G

E 1
 Curve CGF and EGD are neither concave nor A1

-C
convex at point G. 0 x
We can see different up ward sloping functions/ curv

 We can see different up ward sloping functions/ curves.  At point G, f”(x) = 0, G is
 Curve EGF is concave up ward (convex downward), that point of inflection or
shows, the functions is increasing at and increasing rate inflection tangent for CGF
because f”(x) > 0. and EGD.
• A more picture illustrating when a function is concave up or concave down
• Notice the tangent lines and their slopes.
• A point of inflection is also labeled on the picture.
Note:
• To find the inflection points, we look at the second derivative.
• Find all the points such that f” is zero or undefined at those points.
• Then use the Key Number Method to test the sign changes of f” at those points.
Example:
1.
I. Identify the below functions whether they are increasing or decreasing at a given points
a. f(x) = x 2  6 x  17 ,at x=2 and x=4
 f’(x)= 2x-6
 When x=2  f’ (2) =2(2)-6=-2<0, the function is decreasing.
 When = 4  f’ (4) -6 = 2>0, the function is increasing.
b. f(x) = x2+4x+5, at x =-3 and x = -1, and x =-2
 f’(x) = 2x+4
 When x = -3  f’(x) =2(-3) +4 = -2<0, the function is decreasing.
 When x =-1  f’(x) =2(-1) +4 = 2>0, the function is increasing.
 When x = -2  f’(x) = 2(-2) + 4=0, the slope of the curve is horizontal
and stationary.
Example:
II. Identify the following function whether they are concave, convex curve or has point of
1.
inflection.
a) f(x)=2x2-4x
f’(x) = 4x-4
f” (x) = 4>0 , then the curve is convex downward.
b). f (x) = x3-3 x2+4
f”(x) = 3x2-6x
f”’(x) = 6x – 6, point of inflection is where f”(x) = 0
hence it will be at x=1. Unity University 222
3.10 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. Unity University 223
Basic Economic Functions and their Applications
I. Demand, Supply and Market equilibrium
II. Price and income elasticities
III. Cost Functions
IV. The profit equation Unity University 224

I). Demand, Supply and Market equilibrium
a). Point Elasticity of Demand
• The relative change in demand in response to a relative change in price.
• If the changes are small and the demand function Q = f(p) is continuous of price P,
we express elasticity of demand as:
p dQ
• The ratio  gives
Q dp us the average elasticity of demand over the price range of p
• The law of demand: if price increases demand falls (the change is negative)

p dQ p dQ
• Thus: ed = (-) Q dp
 /ed/ =
Q dp Unity University 225
• is the derivative of the given demand function with respect to price.
• For each price, the expression will give the elasticity of demand.
• Ex 1: 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.
Solution:
Po int price
dQ p p  2 p2
elasticity ofdemand , d  .  2 p. 
dp Q Q 75  p 2
dQ d
( Since  (75  p 2 )  2 p )
dp dp
The meaning of this number (i.e. d = 1) is as
Find the value of d if price is 5
price of a good increase by 1%, then quantity
 2 p2  2(5) 2  50 demanded decreases by the same percent.
d  2
  Unity
1 University 226
75  p 75  (5) 2 50
dQ p
Note: /ed/ = . , is a formula for Point price elasticity of demand.
dp Q
a) If /ed/ >1, demand is said to be elastic
b) If 0< /ed/< 1, demand is said to be inelastic
c) If /ed/ = 1, demand is unitary elastic
b). Price and Income Elasticities
• Give the angle curve equation Q = f(y), where y-is income.

dq y
.
• Then the point income elasticity can express as e y = dy Q
• From the above expression, we note that:
a. If ey > 1, then it is for luxury good.
b. If ey < 0, then it is for inferior good.
c. If 0 < ey < 1, then it is for necessity good.

Ex 1:
• Find the income elasticity of demand, if the Engle curve equation is

40Q = 20+5y and if y= 8000, recall the nature of the good.
1 4
• Solution: The given function can be re-expressed as: Q =  .
2 8
dQ y 1 8000 1 8000 1000

ey = .
dy Q
=  1 y , but
8 (  )
y= 8000 = [
8 ( 1  8000 )
]=
1000.5
2 8 2 8
 0 < ey < 1, hence it is necessity good

c). Cost Functions
• For producing a given level of output, there is a corresponding outlay of money
expenditure, called costs of production.
• Let us now generalize the total cost function:
• TC = f (Q) + K, (K is fixed cost); f (Q) is variable cost)
f (Q)  K
• Then average total cost = ATC = TC Q

Q
f (Q )
• Average variable cost = AVC = Q
• Average fixed cost = AFC = K

Q
• ATC = AVC + AFC = f (Q )  K

Q
d (TC )
• Marginal Cost = MC = dQ
Relationship between AC and MC
• Given a total cost function, C = c(Q), the average cost (AC) function can be found
by dividing the total cost by output, Q.
c(Q )
AC  , where Q  0.
Q
• Find the rate of change of average cost (AC) with respect to output, Q.
Solution:
d d  c(Q) 
• The rate of change of AC with respect to Q is dQ ( AC )  
dQ  Q 

• Now use the Quotient rule

dc(Q) d
Q.  c(Q). Q 1 1 c(Q) 
d c(Q) dQ dQ Q.c1 (Q )  c(Q )   c (Q ) 
  
dQ Q Q 2
Q2 Q Q 
d d
• Since, c(Q) c ' (Q )and Q 1), c ' (Q)is the m arg inal cost
dQ dQ Unity University 233
• From the above result we can derive important r/ship b/n AC and MC.
d d c (Q )  1
 c (Q )
( AC )  0 if and only if c (Q )   AC
dQ dQ Q   Q
• The economic meaning of this is that the slope

of the AC curve will be positive, zero, or
negative if and only if the MC curve lies
above, intersects, or lies below the AC curve.
• Since 𝑄>0, it follows that the slope of the AC

curve at each value of 𝑄 has the same sign as
MC−AC, which is what we wanted to prove.Unity University 234
= 0.5Q -
300 0.7Q -30+
Differential Calculus – Derivative
= Q – 0.7 - ...
= 0.5Q2- 0.7Qd (-30+
AC ) 300 Q
2
d (dQ
AC ) Q
300
Ex 1: If TC (Q) = 0.5Q - 0.7Q
3 2
-30Q + 300, find300 = Q – 0.7 - 2
d ( AC )
= Q – 0.7 -dQ Q
a. AC and its slope 2d (TC )
dQ ii) MC = d (TC ) = 1.5Q2 – 1.4Q – 30
Q
b. MC and its slope ii) MC = dQ = 1.5Q2 – 1.4Q – 30
d (TC ) 2 dQ
c. The values for whichii) MC MC==AVC = 1.5Q d ( MC
–) 1.4Q – 30
dQ
d ( MC ) = 3Q – 1.4
Solution:
i) The values for whichdMC = AVC dQ = 3Q – 1.4
( MC ) dQ
3 2
= 3Q – 1.4
TC 0.5 Q - 0.7 Q - 30Q
dQ 300 iii)
iii) MC == AVC
MC AVC
i) AC = 
Q
iii) Q MC = AVC 1.5Q22 – 1.4Q – 30 = 0.5Q22 – 0.7Q – 30
1.5Q – 1.4Q – 30 = 0.5Q – 0.7Q – 30
300 2
2
= 0.5Q - 0.7Q -30+ 1.5Q – 1.4Q – 302 = 0.5Q2 – 0.7Q – 30
Q Q - 0.7Q = 0
d ( AC ) 300
Q2 - 0.7Q = 0 Q
Q (Q
(Q -- 0.7)
0.7) == 0.
0. This
This implies
implies Q
Q == 00 or
or Q
Q == 0.7
0.7
= Q – 0.7 -
dQ Q2 Q (Q - 0.7) = 0. This implies Q = 0 or Q = 0.7
Hence if the production process is running, then
Hence if the production process is running, then Q
Q == 0.7
0.7
 Hence if the
production process is running, then Q = 0.7 units
d). The Profit Equation
• It is known that profit (π) = Total revenue – Total cost.
 Π (Q) = TR (Q) – TC (Q)
• If the TR of a firm equals its TC; then we can say that the firm breaks even
• I.e. TR = TC  TR – TC = 0
• Marginal profit?
It’s the incremental point obtained when the unit of output is produced and sold.
d ( ) d (TR ) d (TC )
• Hence Mπ = dQ
=   M  MR  MC
dQ dQ
Q3
Unity University  210Q 236
10
Q3
Ex 1: A firm assumed a cost function C(Q) = where Q is the monthly output.
 210Q
10
And its revenue function is given by R(Q) = 1500Q -1.5Q 2. If the firm decides to
produce with a marginal cost of 330, then find the
a. level of output per month of the firm?
b. cost of the firm?
c. level of output that maximizes the firm’s profit?
d. MR and MC at this level of output @c and comment on the result
Solution: - For “a” and “b’’
TC =?
• Given TC = 10  210Q; TR = 1500Q – 1.5 Q ; MC Q= 330
3
Q 2
3
d[  210Q]
d (TC ) 3
• Required
TC =? to find: Q =_____? and TC = ______?
MC =
dQ
 10
dQ
 Q  210 , but MC = 330
10
2
Q3 3Q 2
 thus  210 330  Q  20, therefore the level of output is 20units per month.
d[  210Q] 10
d (TC ) 10 3
MC =   Q 2  210 , but MC = 330
dQ dQ 10 Q 3
Unity University (20) 3 237
And TC =  210Q , but Q=20  Total cost =  210(20) 5000
10 10
c). Q that max profit is:- d). MR and MC @ Q = 60.76?
• Mπ = 0 3 2
MC = Q  210
• But π = R(Q) – TC(Q) 10
• But π = R(Q) – TC(Q) MC (60.76) =

3
(60.76473) 2  210
Q3 Q3 10
2 2
= (1500Q -1.5Q ) – (  210Q ) = 1290Q – 1.5 Q -
10 10
3 3
= 1107.7057 + 210 = 1317.7057≈ 1317.71
Q Q
 210Q ) = 1290Q – 1.5 Q2 -
0 10 MR (60.76) = 1500 – 3(60.76473)
d () 3 2
 Mπ = = 1290 -3Q - Q = 1500 – 182.29419
dQ 10
 3Q 3
= 1317.7059
 - 3Q + 1290 = 0
10 ≈ 1317.71
3Q2 + 30Q – 12900 = 0
, because R (Q) = 1500Q – 1.5 Q2 and MR = 1500 – 3Q.
Q2 + 10Q – 4300 = 0, using general quadratic formula
Q = -70.76 or Q = 60.76473  Therefore, MR = MC at the level of output that makes Mπ = 0
 Q ≈ 60.76473 units
Thank
Unity University
You! 239

Cha-3-Differential Calculus-Derivative

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Faculty: College of Business, Economics and Social

• The mathematical concept of derivative is directly related to the notion of rate of

• Will concentrate on functions with a single independent variable.

• An extension of this will be discussed in unit five.

• Is a derived function or marginal function

• The original function is called primitive function

• The rate of change of a function

• Derivative is computed by the concept of limit

• The concept of derivative is the basis of calculus

• The process of computing the derivatives of a function

• So, you may be asked:

Find the derivative of . . .

• In economics understanding the concept of derivative is very useful

• Some of the reasons are:

• The general form of the function is y = f (x).

when change in x, ∆x, is very small.

(x0) to f (x0 + ∆x).

Fig: A Difference quotient with a secant

Example 1: Given y = 2x2 – 1

• Find the average rate of change of y.

• f(x0) = 2x02 -1 and f(x0 + ∆x) = 2(x0 + ∆x)2 - 1

• The next step is to form the difference quotient

• Then the average rate of change of y will be 4(3) + 2(5) = 12 + 10 = 22.

• This means that, on the average, as x changes

from 3 to 8, the change in Y is 22 units per unit

• That is as x approaches zero, will approach to

• Or it can be expressed by the equation:

• f’(x) is read as "f prime of x“

III. Let ∆x or h approaches zero in the simplified difference quotient.

• Q #1: Find the derivative of using the limit concept

Is the slope of the line tangent to the graph of f(x)

It measures the:

slope a line tangent to a curve (evaluated at a point)

• This equation gives us a way to calculate

function of the x coordinate of the point of tangency.

point A corresponds to the particular derivative value f’(x).

Step 3: Apply the limit of step 2 to find its derivative

• A function is said to be differentiable at x = c if it has a derivative when x = c.

• If it does not have a derivative at c, we say it is not differentiable at c.

• To be differentiable at a point, a function must be:

a. continuous at that point and

• Differentiation can only be applied to functions whose:

• It is b/s differentiating is:

Why f(x) is not differentiable at x = 0?

Absolute value rule

• Now check both the right and left side limits.

Theorem: A differentiable function is continuous.

•If f(x) is differentiable at x =a, then f(x) is also continuous at x = a

•If f not continuous at x = a, then f is not differentiable at x = a

So, So, and

Therefore as the limit doesn’t exist

See using derivative of it:

Therefore, , two different value of f derivative

I. f(1) is defined {i.e f(1) = 0}

II. The limit of f(x): = 0

• Therefore, f(x) = is continuous at x =Unity

• Given the function f (x) = /x – 2/ + 1

b. Does f(x) is differentiable at x = 2, why or why not?

a). Check the continuity of f(x):

ii) lim f(x) exists