ِ‫الَّر حيم‬ ‫َّل‬

‫ِبسِم ال ِه الَّر حٰمِن‬

Multivariate Calculus-1

Dr. Mohammed Shamim Uddin

Khan
Professor and Ex-Chairman
Department of Finance
University of Chittagong
 INTRODUCTION-1
 In this Chapter we consider one of the most important
applications of the derivative to find the maximum or
minimum value of a function and the process of finding the
maxima or minima of a function is called optimization.
 Optimization is a predominant theme in management and
economic analysis. For this reason, the classical calculus
methods of finding free and constrained extrema and the
more recent techniques of mathematical programming
occupy an important place in management and economics.
 For example, an economist may be interested in the price of
production level of a commodity that will bring a
maximum profit; a physician may be interested to know the
requirement of diet or ingredients of a food for a sick
person that will lead a minimum cost.
 INTRODUCTION-2
 The most common criterion of choice among
alternatives in economics is the goal of maximizing
something (i.e. profit maximizing, utility maximizing,
growth rate maximizing etc.) or of minimizing
something (i.e. cost minimizing).
 Economically, we may categorize such maximization
and minimization problems under the general heading of
optimization, which meaning is ‘the quest for the best’.
 Today's online class-1 is devoted to a brief discussion of
optimization with single variable function.
 SOME NOTATIONS

y  f ( x)
dy df ( x )
  f x  f ( x )
dx dx
2 2
d y d f ( x)
2
 2
 f xx  f ( x )
dx dx
 BASIC CONCEPT-1

 Increasing function:
A function f (x ) is said to be an increasing at x=a
if on an interval the immediate vicinity of the
point [a, f(a)] the graph of the function rises as it
moves from left to right. An increasing function
can also be defined as- if the first derivative of a
function f(x) is positive through an interval, then
the slope is positive and the function f is called
an increasing function on that interval.
 i.e. if f '(a)> 0 . ; f is increasing function at x=a .
 BASIC CONCEPT-2
Decreasing function: A function f(x) is said to
be a decreasing at x=a if on an interval the
immediate vicinity of the point [a, f(a)] the
graph of the function falls as it moves from
left to right. A decreasing function can also be
defined as- if the first derivative of a function
f(x) is negative through an interval, then the
slope is negative and the function f is called a
decreasing function on that interval.
 i.e. if f'(a)<0 ; f is decreasing function at x=a
 BASIC CONCEPT-3

Concave function: A function f(x) is concave at

x=a if in some small region close to the point
(a, f(a)) the graph of the function lies
completely below its tangent line. A negative
second derivative at x=a , denotes the function
is concave at x=a. The sign of the first
derivative is immaterial for concavity.
f’(a )>0 ; f''(a)<0
0r, f’(a )<0 ; f''(a )<0 .
 BASIC CONCEPT-4
Convex function: A function f (x) is convex at
x=a if in an area very close to the point
(a, f(a)) the graph of the function lies
completely above its tangent line. A positive
second derivative at x=a, denotes the function
is convex at x=a .
 f'(a )>0 ; f '' (a)>0
 f'(a )<0 ; f '' (a )>0
 BASIC CONCEPT-5
Critical point: Critical point is a point in the
domain of a function at , where the function
must be at a relative plateau, i.e. neither
increasing nor decreasing at x=a. If the function
is neither increasing nor decreasing at x=a, the
first derivative of the function must be equals to
zero or undefined i.e. if f'(a)=0 or undefined;
the function is at a critical point at x=a . For a
critical point, f'(x)=0
 BASIC CONCEPT-6
 Inflection points: An inflection point is a
point on the graph where the function crosses
its tangent line and changes from concave to
convex or vice versa. Inflection points occur
only where the second derivative equals zero
or is undefined. The sign of the first derivative
is immaterial. i.e. if f''(a)=0; the function is at
an inflection point at x=a .
 f ' (a )<0 ; f '' (a)=0 . f ' (a)>0 ; f ''(a)=0 .
 BASIC CONCEPT-7

Maxima and Minima: A function f(x) is said to

have attained its maximum value at x=a if the
function ceases to increase and begins to
decrease at x=a.
A function f(x) is said to have attained its minimum
value at x=a if the function ceases to decrease
and begins to increase at x=a.
The maxima and minima always occurred at a
critical point or at an end point.
 FEATURES OF MAXIMA AND MINIMA OF A
CONTINUOUS FUNCTION-1

 A function may have more than one maximum and minimum

value. A function may have several maxima and minima in an
interval where the function is defined.
 It is not necessary that a maximum value of a function is always
greater than a minimum value of the function. Maximum value
of a function may be less than minimum value of a function.
 In between two maxima, there should be at least one minimum
value of the function. Similarly, at least one maximum value of
the function must lie between two minimum values of the
function. There is a minimum value of the function between
two consecutive maximum values and vice versa. Thus we
observe that maximum and minimum values of a function occur
alternately.
 FEATURES OF MAXIMA AND MINIMA OF A
CONTINUOUS FUNCTION-2

 In Calculus, we are concerned with a relative maximum

or a relative minimum value of a function and not with
an absolute maximum or absolute minimum.
 The maximum or minimum point is called a turning
point in a curve. The values of the function at these
points are called turning values. For the maximum
point, the curve ceases to ascend and begins to descend.
The turning value of the function is a maximum. For
the minimum point, the curve ceases to descend and
begins to ascend and the turning value is a minimum at
the turning point.
 BASIC CONCEPT-8
Absolute and Local Maxima and Minima: A
function f(x) is said to reach an absolute
maximum at x=a if
f(a)>f(x) for any other x in the domain of f (x ).
On the other hand, a function f(x) is said to
reach an absolute minimum at x=a if f(a)<f(x)
for any other x in the domain of f (x).
 BASIC CONCEPT-8 CONT.
 If a function f(x) is defined on an interval (b, c) which
contains x=a, f(x) is said to reach a relative (local)
maximum at x=a if f(a)≥f(x) for all x within the
interval (b, c). A relative (local) maximum refers to a
point where the value of f(x) is greater than values for
any points that are nearby. Again, if a function f(x) is
defined on an interval (b, c) that contains x=a, f(x) is
said to reach a relative (local) minimum at x=a if
f(a)≤f(x) for all x within the interval (b, c). A relative
(local) minimum refers to a point where the value of
f(x) is lower than values for any points that are nearby.
 BASIC CONCEPT-8 CONT.
It should be noted that a point on the graph of a function could be both a
relative maximum (minimum) and an absolute maximum (minimum).
To distinguish mathematically between a relative maximum and minimum,
the second derivative test is used.
Since relative maxima or minima always occurred at the critical point, so
assuming f '(a)=0 .
1. If f''(a)<0, indicating that the function is concave and is relative
maxima at x=a .
2. If f’’(a)>0, indicating that the function is convex and is relative
minima at x=a .
3. If f''(a)=0, the test is inconclusive at x=a.
Thus, local maxima and minima can be determined from the first and
second derivatives. The absolute maxima and minima can be found only
by comparing the local maxima and local minima with the value of the
function at the end points and selecting the absolute maximum and
minimum.
 WORKING RULES FOR FINDING OF MAXIMUM, MINIMUM AND
POINT OF INFLECTION OF A FUNCTION WITH SINGLE VARIABLE

Step 1: Take the first derivative of the function and set it equal to zero and
solve it to find out the critical value(s), i.e. find f'(x) and put f '(x) =0. This
step represents a necessary condition known as the first-order condition.
Step 2: Take the second derivative and evaluate it at the critical value(s) and
check the sign(s).
Step 3: If at a critical point a ,
f ' ' (a )<0 ; the function is concave at a , and hence at a relative maxima.
f ' ' (a )>0 ; the function is convex at a , and hence at a relative minima.
f ' ' (a )=0 ; the test is inconclusive at x=a .
This step known as the second-order condition represents a sufficient
condition.
Step 4: To find out absolute maxima and absolute minima, evaluate the
function f at the end points a and b of the domain and at the critical
values found in step 1. Now comparing all the values the absolute maxima
and minima will be determined.
Example 1: Check whether the following functions are
increasing, decreasing or stationary at x=4 .
(i) f(x)=3x2−14x+5
(ii) f(x)=x3−7x2+6x−2
(iii) f(x)=x4−6x3+4x2−13
Solution:
(i) Given that, f(x)=3x2−14x+5
Now, f'(x)=6x−14
at x=4 we get, f'(4)=6×4−14=10>0
As the first derivative is greater than zero,
so the function is increasing at x=4
 EXAMPLE-1 (CONT.)

(ii) Given that, f(x)=x3−7x2+6x−2

Now, f ' (x)=3x2−14x+6
at x=4 we get, f '(4)=3(4)2−14(4)+6=−2<0
As the first derivative is less than zero, so the function
is decreasing at x=4
(iii) Given that, f (x)=x4−6x3+4x2−13
Now, f '(x)=4x3−18x2+8x
at x=4 we get, f '(4)=4(4)3−18(4)2+8(4)=0
Since the first derivative is equal to zero, the function
is stationary at x=4
Example 2: Test whether the following functions are
concave or convex at x=3: (i) f(x)=−2x3+4x2+9x−15
(ii) f(x)=4x2−10x+3
Solution:
(i) Given that, f(x)=−2x3+4x2+9 x−15
Now, f '(x)=−6 x2+8 x+9
f ‘'(x )=−12x+8
at x=3 we get, f ‘'(3)=−12(3)+8=−28<0
Since the second the second derivative is less than zero, the
function is concave at x=3
(ii) Given that, f (x )=4x2−10x+3
Now, f '(x)=8x−10
f ''(x)=8
at x=3 we get, f ''(3)=8>0
Since the second the second derivative is greater than zero, the
Example 3: Find the local maxima and minimum of the following
functions: (i) y=f(x)=−5x2+20x−12
(ii) y=f(x)=3x2+12x+8
Solution:
(i) The given function is
y=f(x)=−5x2+20 x−12
Now, the first derivative of the function is
f '(x)=−10x+20
For the critical value(s), setting the first derivative equal to zero and
evaluating it, we get −10x+20=0 ; x=2
Now, for the second-order condition, we get
f '' (x)=−10
at x=2 ; f ''(2)=−10<0
Since the second derivative is less than zero, so the function is concave
i.e. relative maxima at x=2 .
Now the maximum value of the function is,
y=f (2)=−5(22)+20(2)−12=8
 EXAMPLE 3 CONT.

(ii) The given function is y=f(x)=3x2+12x+8

Now, the first derivative of the function is f '(x)=6x+12
For the critical value(s), setting the first derivative equal
to zero and evaluating it, we get 6x+12=0; x=−2
Now, for the second-order condition, we get f ''(x)=6
at x=−2 ; f ''(−2)=6>0
Since the second derivative is greater than zero, so the
function is convex i.e. relative minima at x=−2 .
Now the minimum value of the function is,
y=f (−2)=3 (−2)2+12 (−2)+8=−4
Example 4: Examine whether the function is at a relative maxima
or minima y=f(x)=2x3−3x2−36 x+10
Solution: The given function is
y=f(x)=2x3−3x2−36x+10
Now, f '(x)=6x2−6x−36
For the critical value(s), f '(x)=0
or, 6x2−6x−36=0

Solving the equation we get, ∴x=3,−2

or, x2−x−6=0

Now, f ''(x)=12x−6
at x=3, f(3)=12(3)-6=30>; function is convex i.e. relative minima.
at x=−2, f(-2)=12(-2)-6=-30<; function is concave i.e. relative
maxima.
Hence the function is relative minima at x=3 and relative maxima at
x=−2.
Example 5: Find the absolute and local maxima and minima
of the function y=f(x)=x3+3x2−24x+1 ; for −5≤ x ≤3
Solution: The given function is
y=f(x)=x3+3x2−24x+1
Now, f '(x)=3x2+6x−24
For the critical value(s), f '(x)=0
or, 3x2+6x−24=0
Solving this equation we get, x=−4, 2
For the second order condition,
f ''(x)=6x+6
at x=−4, f ''(−4)=6 (−4 )+6=−18<0; function is concave i.e.
relative maxima.
at x=2, f ''(2 )=6(2)+6=18<0; function is convex i.e. relative
minima.
 EXAMPLE 5 CONT.

So the function is at a relative maxima at x=−4 and a

relative minima at x=2.
Now, to find out the absolute maxima and minima evaluating
the function at the critical points and the ends point of the
domain, we get
f (−5 )=(−5)3+3(−5)2−24(−5 )+1=71
f (−4 )=(−4)3+3(−4)2−24(−4 )+1=81
f (2)=(2)3+3(2)2−24(2)+1=−27
f (3 )=(3)3+3(3)2−24(3)+1=−17
Hence the absolute minima is f (x)=−27 which occurs at x=2
and the absolute maxima is f(x)=81 which occurs at x=−4.
Example 6: Examine the maxima and minima of the
function y=f(x)=−x3+6x2+15x+40. Also find the point
of inflection and draw the graph of the function.
Solution: The given function is y=f(x)=−x3+6x2+15 x+40
Now, f '(x)=−3x2+12x+15
For the critical value(s), f ' (x)=0
or, −3x2+12x+15=0
Solving this equation we get, x=−1, 5
 EXAMPLE 6 CONT.

For the second order condition,

f'' (x)=-6x+1
at x=−1, f''(−1)=−6(−1)+12=18>0; function is convex i.e. relative
minima.
at x=5, f''(5)=−6(5)+12=−18<0; function is concave i.e. relative
maxima.
So the function is at a relative maxima at x=5 and a relative minima
at x=−1.
Now, for the point of inflection, f’'( x )=0

∴x=2
−6 x+12=0

at x=2, f (2)=−(2)3+6(2)2+15(2 )+40=88

Hence the point of inflection is (2, 88).