Application of Calculus

Reporter: Bea Monique G. Panganiban

Problem No. 1
Suppose that the daily cost (in dollars) of manufacturing x items is modeled by
C(x) = 0.01x2 + 10x + 50. The unit cost, or cost per item, is obtained by dividing
the total cost C(x) by the total production x. Hence the unit cost is given by the
formula:

( x )=

C (x )
x

. Find the derivative of its unit cost function and interpret

when x = 10.
Computation:
For the given cost C(x), the unit cost is:

Cu ( x )=

0.01 x2 +10 x+ 50
x

Using the quotient rule:

0.01 x2 +10 x+ 50
(
)
Cu x =
x

Cu ( x )=

x [ 0.02 x+10 ] [ 0.01 x 2 +10 x+ 50 ] [ 1 ]

x2

0.02 x 50
Cu' ( x )=
2
x
At x = 10 (substitute):
2

Cu ( 10 ) =

0.02(10) 50
10 2
Cu ( 10 ) =0.49

This means that when 10 items are produced the cost per item is
decreasing at a rate of 0.49 per item.

Application of Calculus
Problem No. 2
The profit made from producing and selling x items is given by P(x) = 200x
2x2. Find the marginal profit. When is the marginal profit equal to zero?
(Note: Marginal Profit is the difference between the marginal revenue and
the marginal cost of producing one additional unit of output. If, at a given output
level marginal revenue is equal to the marginal cost (MR = MC), the marginal profit
is zero. This is the most profitable rate of output because all opportunities to make
marginal profit have been exhausted. )

Computation:
Derive using rule no. 1 and no. 2:
P(x) = 200x 2x2
P(x) = 200 4x
Finding the marginal profit: (trial and error)
Let x = 30: (substitution)
P(30) = 200 4(30)
P(30) = 80
Let x = 40: (substitution)
P(40) = 200 4(40)
P(40) = 40
Let x = 50: (substitution)
P(50) = 200 4(50)
P(50) = 0
Therefore 50 items must be sold so that the marginal profit will be zero,
and therefore selling 50 items is enough to make the company have a
profit they needed.

Reporter:

Sheina Marie T. Baluyot

Problem No. 1

Application of Calculus
Formula:
Revenue function
= (price per unit) (quantity of units)
Symbol: R = p(x)
Marginal function
The derivative of revenue function R(x) is called marginal function with notation
R(x) = dR/dx

Example

Given the price in pesos per unit

P = -3x 2+600x
Find :
a. The marginal revenue at x = 300 units
b. The marginal revenue at x = 100 units

Revenue function:

R(x) = p . x = (-3x2 + 600x)x = -3x3 + 600x2

Marginal revenue:

R(x) = dR/dx = 9x2 + 1200x

Marginal revenue at x=300

R(300) = dR/dx = 9(300)2 + 1200(300) = 450 000

revenue function:

R(x) = p.x = (3x2 + 600x). x = 3x3 + 600x2

marginal revenue:

R (x) = dR/dx = 9x2 + 1200x

marginal revenue at x = 100

R(100) = dR/dx = 9(100)2 + 1200(100) = 30 000

Application of Calculus
Problem No. 2
Formula:
Cost function = (average cost per unit) . (quantity of units) Symbols: C = C*x
The derivative of the cost function C(x) is called marginal cost with notation: C(x) =
dC/dx

Example 2:
Given the average cost in dollar per unit C = 357x + 1800 ,

find: the marginal cost at x = 50 units. Interpret the result.

cost function: C(x) = C.x = (357x + 1800). x = 357x 2 + 1800x
marginal cost: C(x) = dC dx = 714x + 1800
marginal cost at x = 50: C(50) = dC/dx = 714(50) + 1800 = 37 500
Interpretation: If production increases from 50 to 51 units, the cost increases by 37
500 dollars.

REPORTER: Gherella Reyes

Problem No.2
A widget manufacturer determines that the demand function for her widgets is
P=

1000
x

where x is the demand for widgets at a given price, p. The cost of producing x
widgets is given by the following cost function:
C(x) = 10x + 100

+ 10,000

Determine the marginal cost at x = 100 widgets.

Application of Calculus
Marginal cost
Marginal cost is the derivative of the cost function, so take the derivative and
evaluate it at x = 100.
C(x) = 10x + 100
C(x) = 10 +

50
x

C(100) = 10 +
= 10 +

+ 10,000

(power rule)

50
100
50
10

= 15
Thus, the marginal cost at x = 100 is $15 this is the approximate cost of
producing the 101st widget.
REPORTER: JEANETTE B. LADERA

BSBAMA3

1. Suppose that R(x) dollars is the total revenue received from the sale of x
tables, and
R(x) = 300x x2
Find (a) the marginal revenue function; (b) the marginal revenue when x=40; (c) the
actual revenue from the sale of the forty-first table.
Solution:
(a) The marginal revenue function is R, and
R(x) = 300 x
(b) The marginal revenue when x=40 is given by R(40), and
R(40) = 300 40
= 260
Thus the rate of change of the total revenue when 40 tables are sold is $260 per
table.
(c) The number of dollars in the actual revenue from the sale of the forty-first table
is R(41) R(40), and

Application of Calculus
R(41) R(40) = [300(41) (41)2/2] [300(40) (40)2/2]
= [12,300 840.50] [12,000 800]
= 11,459.50 11,200
`

= 259.50

Hence the actual revenue from the sale of the forty-first table is $259.50
2. The total revenue received from the sale of x television set is R(x) dollars,
and R(x) = 200x x2. Find (a) the marginal revenue function; (b) the
marginal revenue when x=30; (c) the actual revenue from the sale of the
thirty-first television set.
Solution:
(a) The marginal revenue function is R, and
R(x) = 200 x
(b) The marginal revenue when x=30 is given by R(30), and
R(30) = 200 30
= 170
Thus the rate of change of the total revenue when 30 television sets are sold is
$170 per TV set.
(c) The number of dollars in the actual revenue from the sale of the thirty-first table
is R(31) R(30), and
R(31) R(30) = [200(31) (31)2/2] [200(30) (30)2/2]
= [6,200 480.50] [6,000 - 450]
= 5,719.50 5,550
`

= 169.50

Hence the actual revenue from the sale of the thirty-first television set is $169.50

Reporter:

Ariadna Sodhi Del Rosario

Total cost (TC) in the simplest terms is all the costs incurred in producing
something or engaging in an activity. In economics, total cost is made up of variable
costs + fixed costs.

Application of Calculus
Variable costs (VC) are costs that change based on how many goods you buy or
how much of a service you use. A simple way to think about variable costs is to look
at your utility bill in your home. As you use more gas or electricity during the colder
months, your heating bill is usually higher. When the weather is nicer, your bill
typically goes down. When it is extremely hot outside, though, the bill can start to
go back up as you need air conditioning. The cost therefore varies as your usage
varies.
Fixed costs (FC) are costs that don't change from month to month and don't vary
based on activities or number of goods produced. They stay exactly the same.
These are easy to calculate and could be things like the set amount of rent you pay
every month for your apartment or your $200 car payment. Regardless of whether
you stay at your apartment 30 days during the month or 10 days during the month,
the rent costs the same amount.

EXAMPLE
The cost function to produce x tires is given as C(x)=.012x + 5,000.
First, let's find the cost to produce 1500 tires. To find this, you can simply plug in
1500 for x and then evaluate the cost function:
C(1500) = .012*1,500 + 5,000 = $5,180
Thus, it costs $5,180 to produce 1,500 tires.

FOR SEATWORK
The cost function to produce x tires is given as C(x)=.012x + 5,000.
First, let's find the cost to produce 2000 tires.
ANSWER
C(2000) = .012*2000 + 5,000 = $5,240
Thus, it costs $5,240 to produce 2000 tires.

Application of Calculus
FOR SIR
The cost function for a property management company is given as C(x) = 50x +
100,000/x + 20,000 where xrepresents the number of properties being managed.
First, let's find the cost of managing 500 properties.
ANSWER
C(500) = (50*500) + (100,000/500) + 20,000 = 25,000 + 200 + 20,000 = $45,200

Reporter:

Patio, Samantha P.

The derivative of the revenue function R(x) iscalled marginal revenue with notation:
R'(x)= dR
dx
Marginal Revenue : The marginal revenue R'(x) is defined as the rate of change of
total revenue with respect to the quantity demand.
R'(x)= dR
dx
The marginal revenue is interpreted as the approximate revenue received from
producing andselling one additional unit of the product.
Example
The total revenue received from the sale of x units of a product is given by R(x) =
12x+2x2+6 when x= 50. Find the marginal revenue.
Solution : Marginal revenue
R'(x)= dR
dx
=12 + 4x
R'(4) = 12 + 4(50)
= 212

The derivative of the cost function C(x) is called marginal cost with notation:
C'(x)= dC

Application of Calculus
dx
Marginal cost is interpreted as the approximate cost of one additional unit of
output.
Example
The cost function of a firm is given by 0.2x2 + 5 when x = 10 units are produced.
Find the marginal cost.
Solution:
C'(x) = dC
dx
= 0.4x
C'(10) = 0.4(10)
=4