A6S/MATH1009/2016-17/1st

THE UNIVERSITY OF HONG KONG

DEPARTMENT OF MATHEMATICS

MATH1009 Basic Mathematics for Business and Economics

Assignment 6 Solution

f f
1. (a) = 6x2 y 2 + 4 and = 4x3 y + 2
x y
f f
(b) = 2x and = 21y 2
x y
f 1 f x
(c) = and = 2
x y y y
f f
(d) = (y + 2)2 and = 2(x 2)(y + 2)
x y
f 2 3 f 2 3
(e) = 8xy 3 ex y and = 12x2 y 2 ex y
x y
 
2. (a) fx (2, 1) = 8x 8y 4 (2,1) = 8 and fy (2, 1) = 32xy 3 + 35y 4 (2,1) = 29

fxx (2, 1) = 8, fxy (2, 1) = fyx (2, 1) = 32y 3 (2,1) = 32 and fyy = 96xy 2 +140y 3 (2,1) = 52
 

 
(b) fx (2, 1) = 3x2 2y (2,1) = 10 and fy (2, 1) = 3y 2 2x(2,1) = 7
 
fxx (2, 1) = 6x(2,1) = 12, fxy (2, 1) = fyx (2, 1) = 2 and fyy (2, 1) = 6y (2,1) = 6
 
(c) fx (2, 1) = x1 y 1 (2,1) = 21 and fy (2, 1) = (1 )x y (2,1) = (1 )2
 
fxx (2, 1) = (1)x2 y 1 (2,1) = (1)22 , fxy (2, 1) = fyx (2, 1) = (1)x1 y (2,1)

= (1 )21 and fyy (2, 1) = (1 )x y 1 (2,1) = (1 )2

3. By the Chain Rule, we have

dQ Q dK Q dL
= + .
dt K dt L dt
The partial derivatives of Q(K, L) = AK L are given by

Q Q
= AK 1 L and = AK L1 .
K L
Furthermore, we have
dK d dL d
= (K0 + at) = a and = (L0 + bt) = b.
dt dt dt dt
Hence,
dQ
= aAK 1 L + bAK L1 = AK 1 L1 (aL + bK).
dt

1
4. (a) By the Chain Rule, we have
dQ Q dK Q dL
= + .
dw K dw L dw
1 2
The partial derivatives of Q(K, L) = 5K 3 L 3 are given by

Q 5 2 2 Q 10 1 1
= K 3 L 3 and = K3L 3.
K 3 L 3
Furthermore, we have
   
dK d 10 20 dL d 60 180
= = 3 and = = .
dw dw w2 w dw dw w3 w4

Hence,      
dQ 5 2 2 20 10 1 1 180
= K 3 L3 3 + K3L 3 4
dw 3 w 3 w
    23     13
100 L 600 K
= 3 + 4
3w K w L
    23    1
100 6 600 w 3
= 3 + 4
3w w w 6
" 2
!  #  
100(6 3 ) 600 1
= 1 11 .
3 63 w3

 
dQ 1 dQ
(b) Observe that =C 11 , where C is a negative number. Hence < 0 for any w > 0.
dw w3 dw
Thus Q is a decreasing function of w, meaning that an increase in the wage level w will result
in a decrease in the output Q.

5. The change in the volume of a beer can is V which can be approximated by

V V
V (3, 14) r + (3, 14) h.
r h
If the radius changes from 3 to 2.5 and the height changes from 14 to 14.2, then we have

r = 0.5 and h = 0.2.

The partial derivatives of V (r, h) at (3, 14) are

 
V  V 2

(3, 14) = 2rh = 84 and (3, 14) = r  = 9.
r (3,14) h (3,14)

Hence the change in the volume is approximately

V (84)(0.5) + (9)(0.2) = 40.2 126.3.

As a result, the volume of the can decreases by approximately 126.3 cubic units.

2
6. (a) Since
Q Q
M PK = = 2K 1/2 L1/2 and M PL = = 2K 1/2 L1/2 ,
K L
we have
20 6
M PK (50, 600) = 2(50)1/2 (600)1/2 = =4 3
5 2
and
1
M PL (50, 600) = 2(50)1/2 (600)1/2 = .
3
(b) An additional unit of capital means K = 1. Thus the approximate change in output is given
by

Q M PK (50, 600)K + M PL (50, 600)L = M PK (50, 600) = 4 3.

(c) An additional unit of labour means L = 1. Thus the approximate change in output is given
by
1
Q M PK (50, 600)K + M PL (50, 600)L = M PL (50, 600) = .
3

(30)(20)
7. (a) Q(30, 20) = = 12.
30 + 20
(b) Since
Q L(K + L) KL L2
M PK = = =
K (K + L)2 (K + L)2
and
Q K(K + L) KL K2
M PL = = = ,
L (K + L)2 (K + L)2
we have
202 4 302 9
M PK (30, 20) = = and M PL (30, 20) = = .
(30 + 20)2 25 (30 + 20)2 25
(c) The approximate change in output is
   
4 9 36
Q M PK (30, 20)K + M PL (30, 20)L = (0) + (4) = .
25 25 25
(d) We need to find K when L = 4 and Q = 0:
   
4 9
0 = Q M PK (30, 20)K + M PL (30, 20)L = K + (4).
25 25
It follows that we need to increase the capital by approximately 9 units in order to keep the
firms production unchanged.

8. (a) The partial derivatives are given by

fx (x, y) = 9x2 9y and fy (x, y) = 9x + 9y 2 .

(b) The critical points are found by solving the equations

fx (x, y) = 9x2 9y = 0 and fy (x, y) = 9x + 9y 2 = 0.

For fx (x, y) = 0 we must have y = x2 . Putting this into the equation fy = 0 gives 9x+9x4 =
0, which implies x(x3 1) = 0. From this we have either x = 0 or x3 = 1. The latter equation
means x = 1. When x = 0, we have y = x2 = 0, and when x = 1, we have y = x2 = 1. It
follows that f (x, y) has in total two critical points which are located at (0, 0) and (1, 1).

3
 (c) The second order partial derivatives are given by

fxx (x, y) = 18x, fxy (x, y) = fyx (x, y) = 9 and fyy (x, y) = 18y.

(d) At (0, 0), we have

2
fxx (0, 0)fyy (0, 0) fxy (0, 0) = (0)(0) (9)2 = 81 < 0,

hence (0, 0) is a saddle point.

At (1, 1), we have

2
fxx (1, 1)fyy (1, 1) fxy (1, 1) = (18)(18) (9)2 = 243 > 0 and fxx (1, 1) = 18 > 0,

hence (1, 1) is a local minimum.

9. (a) The partial derivatives are given by

fx (x, y) = 8x3 + 6xy 2 + 2x = 2x(4x2 + 3y 2 + 1)

and
fy (x, y) = 6x2 y 8y 3 + 2y = 2y(3x2 4y 2 + 1).

(b) The critical points are found by solving the equations

fx (x, y) = 2x(4x2 + 3y 2 + 1) = 0 and fy (x, y) = 2y(3x2 4y 2 + 1) = 0.

For fx (x, y) = 0 we must have x = 0 since 4x2 + 3y 2 + 1 is always positive. Putting x = 0

into the equation fy = 0 gives 2y(4y 2 + 1) = 0, which implies either y = 0 or 4y 2 = 1. The
latter equation means y = 21 . It follows that f (x, y) has in total three critical points which
are located at    
1 1
(0, 0), 0, and 0, .
2 2
(c) The second order partial derivatives are given by

fxx (x, y) = 24x2 + 6y 2 + 2, fxy (x, y) = fyx (x, y) = 12xy and fyy (x, y) = 6x2 24y 2 + 2.

(d) At (0, 0), we have

2
fxx (0, 0)fyy (0, 0) fxy (0, 0) = (2)(2) 02 = 4 > 0 and fxx (0, 0) = 2 > 0,

hence (0, 0) is a local minimum.

At (0, 12 ) and (0, 12 ), we have

       
1 1 2 1 7
fxx 0, fyy 0, fxy 0, = (4) 02 = 14 < 0
2 2 2 2
and        
1 1 2 1 7
fxx 0, fyy 0, fxy 0, = (4) 02 = 14 < 0,
2 2 2 2
hence (0, 21 ) and (0, 12 ) are saddle points.

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10. The total revenue of selling both whole milk and skim milk is

T R(q1 , q2 ) = (20 5q1 )q1 + (4 2q2 )q2 = 20q1 5q12 + 4q2 2q22 .

Hence the profit is given by

(q1 , q2 ) = (20q1 5q12 + 4q2 2q22 ) (2q1 q2 + 4).

The critical points of (q1 , q2 ) are solutions to the equations

q1 = 20 10q1 2q2 = 0 and q2 = 4 4q2 2q1 = 0.

Solving these equations we obtain q1 = 2 and q2 = 0. Hence (q1 , q2 ) = (2, 0) is the only critical
point of the profit function.

The second-order partial derivatives are given by

q1 q1 = 10, q1 q2 = 2 and q2 q2 = 4.

Observe that for any values of q1 and q2 , we have

q1 q1 q2 q2 q21 q2 = (10)(4) (2)2 = 36 > 0 and q1 q1 = 10 < 0.

Thus this is true in particular at the critical point (2, 0). We conclude that the profit has a local
maximum at q1 = 2 and q2 = 0 with

(2, 0) = (20(2) 5(2)2 + 4(0) 2(0)2 ) (2(2)(0) + 4) = 16.

11. The profit function (q1 , q2 ) is given by

 
3
(q1 , q2 ) = 74 q1 q1 + (72 2q2 )q2 (q12 + 2q1 q2 + q22 + 120)
2
5
= 74q1 q12 + 72q2 3q22 2q1 q2 120.
2
The critical points of (q1 , q2 ) are solutions to the equations

q1 = 74 5q1 2q2 = 0 and q2 = 72 6q2 2q1 = 0.

Solving these equations we obtain

150 106
q1 = and q2 = .
13 13
 
150 106
Hence (q1 , q2 ) = , is the only critical point of the profit function.
13 13

The second-order partial derivatives are given by

q1 q1 = 5, q1 q2 = 2 and q2 q2 = 6.

Observe that for any values of q1 and q2 , we have

q1 q1 q2 q2 q21 q2 = (5)(6) (2)2 > 0 and q1 q1 = 5 < 0.

5
  
150 106
Thus this is true in particular at the critical point (q1 , q2 ) = , . We conclude that the
13 13
profit has a local maximum there. The maximum profit is given by
     2    2   
150 106 150 5 150 106 106 150 106
, = 74 + 72 3 2 120
13 13 13 2 13 13 13 13 13
600.46.

12. The profit function (q1 , q2 ) is given by

(q1 , q2 ) = (a bq1 )q1 + (c dq2 )q2 (q12 + q22 ) = aq1 bq12 + cq2 dq22 q12 q22
= aq1 (b + 1)q12 + cq2 (d + 1)q22 .

The critical points of (q1 , q2 ) are solutions to the equations

q1 = a 2(b + 1)q1 = 0 and q2 = c 2(d + 1)q2 = 0.

Solving these equations we obtain

a c
q1 = and q2 = .
2(b + 1) 2(d + 1)
 
a c
Hence (q1 , q2 ) = , is the only critical point of the profit function.
2(b + 1) 2(d + 1)
The second-order partial derivatives are given by

q1 q1 = 2(b + 1), q1 q2 = 0 and q2 q2 = 2(d + 1).

Observe that for any values of q1 and q2 , we have

q1 q1 q2 q2 q21 q2 = 4(b + 1)(d + 1) > 0and q1 q1 = 2(b + 1) < 0.

 
a c
Thus this is true in particular at the critical point (q1 , q2 ) = , . We conclude
2(b + 1) 2(d + 1)
that the profit has a local maximum there.

13. The profit function (x, y) is given by

(x, y) = p(ln x + ln y) (p1 x + p2 y) = p ln x + p ln y p1 x p2 y.

The critical points of (x, y) are solutions to the equations

p p
x = p1 = 0 and y = p2 = 0.
x y
Solving these equations we obtain
p p
x = and y = .
p1 p2
 
p p
Hence (x, y) = , is the only critical point of the profit function.
p1 p2
The second-order partial derivatives are given by
p p
xx = , xy = 0 and yy = .
x2 y2

6
 Observe that for any values of x and y, we have

2
 p  p  p2 p
xx yy xy = 2 2 02 = 2 2 > 0 and xx = 2 < 0.
x y x y x
 
p p
Thus this is true in particular at the critical point (x, y) = , . We conclude that the profit
p1 p2
has a local maximum there with
         
p p p p p p
, = p ln + p ln p1 p2 = p (2 ln p ln p1 ln p2 2).
p1 p2 p1 p2 p1 p2

14. Write g(x, y) = xy so that the constraint equation is given by g(x, y) = 96. Then
f f g g
= 5y + 80, = 5x + 30, =y and = x,
x y x y
and the system of equations becomes

(i) 5y + 80 = y (ii) 5x + 30 = x and (iii) xy = 96.

Combining (i) and (ii) gives

5y + 80 5x + 30
= = .
y x
8 8 2
Thus we have y = 3 x. Substitute this into the constraint equation (iii) gives 3x = 96, that is,
x = 6. If x = 6, then y = 16, and if x = 6, then y = 16. Hence there are two points on which
f (x, y) takes on its extreme values: (x, y) = (6, 16) and (x, y) = (6, 16).

Putting all the solutions into f (x, y) gives

f (6, 16) = 1440 and f (6, 16) = 480.

It follows that the maximum value occurs at (x, y) = (6, 16) with value 1440, whereas the minimum
value occurs at (x, y) = (6, 16) with value 480.

15. Write g(x, y) = x2 + y 2 so that the constraint equation is given by g(x, y) = 306. Then
f f g g
= 5, = 3, = 2x and = 2y,
x y x y
and the system of equations becomes

(i) 5 = (2x) (ii) 3 = (2y) and (iii) x2 + y 2 = 306.

5 3
From (i) and (ii) we have x = 2 and y = 2 . Substitute into the constraint equation (iii) gives
25 9 17
+ 2 = 2 = 306,
42 4 2
and hence = 16 . If = 61 , then x = 15 and y = 9. If = 16 , then x = 15 and y = 9.

Putting all the solutions into f (x, y) gives

f (15, 9) = 102 and f (15, 9) = 102.

It follows that the maximum value occurs at (x, y) = (15, 9) with value 102, whereas the minimum
value occurs at (x, y) = (15, 9) with value 102.

7
16. Write g(x, y) = x2 + 2y 2 so that the constraint equation is given by g(x, y) = 1. Then

f f g g
= y, = x, = 2x and = 4y,
x y x y
and the system of equations becomes

(i) y = (2x) (ii) x = (4y) and (iii) x2 + 2y 2 = 1.

1
Combining (i) and (ii) gives y = 2(4y) = 82 y so that either y = 0 or = 2 2
. When y = 0,
then x = 0 as well (by (ii)). However, x = 0 and y = 0 do not satisfy the constraint equation (iii).
1

Therefore the case y = 0 is rejected. Then = 2 2
, and hence x = 2y from (ii). Substituting
this in (iii) gives

( 2y)2 + 2y 2 = 1,

so 2y 2 + 2y 2 = 1 and we have y = 21 . By (ii), if y = 21 , then x = 12 (since = 2

1
2
), and if
y = 12 , then x = 12 . Hence there are four points on which f (x, y) takes on its extreme values:
       
1 1 1 1 1 1 1 1
(x, y) = , , , , , , , .
2 2 2 2 2 2 2 2

Putting all the solutions into f (x, y) = xy gives

   
1 1 1 1 1
f (x, y) = when (x, y) = , or ,
2 2 2 2 2 2
and    
1 1 1 1 1
f (x, y) = when (x, y) = , or , .
2 2 2 2 2 2
   
It follows that the maximum value occurs at (x, y) = 12 , 12 or 12 , 12 with value 1

2 2
,
   
whereas the minimum value occurs at (x, y) = 12 , 12 or 12 , 12 with value 2
1
2
.

17. The problem can be formulated as

min 6K + 2L
s.t. K 3/10 L1/2 = 28.

Using the method of Lagrange multipliers, we need to solve

   
3 7/10 1/2 1 3/10 1/2
(i) 6 = K L (ii) 2 = K L and (iii) K 3/10 L1/2 = 28.
10 2

From (i) and (ii) we have

= 20K 7/10 L1/2 = 4K 3/10 L1/2 ,

that is,
5K 7/10 K 3/10 = L1/2 L1/2 .

This means L = 5K. Putting this into (iii) we have

K 3/10 (5K)1/2 = 28

8
 and hence the optimal values of K and L are

K = 55/8 (28)5/4 and L = 5K = 53/8 (28)5/4 .

It follows that the minimum cost is approximately given by

6(55/8 (28)5/4 ) + 2(53/8 (28)5/4 ) 376.89.

18. The problem can be formulated as

min 450K + 75L
s.t. 70K 1/5 L4/5 = 26, 950.

Using the method of Lagrange multipliers, we need to solve

(i) 450 = (14K 4/5 L4/5 ) (ii) 75 = (56K 1/5 L1/5 ) and (iii) 70K 1/5 L4/5 = 26, 950.

From (i) and (ii) we have

225 4/5 4/5 75 1/5 1/5
= K L = K L ,
7 56
that is,
225 4/5 1/5 75 4/5 1/5
K K = L L .
7 56
This means L = 24K. Putting this into (iii) we have

70K 1/5 (24K)4/5 = 26, 950

and hence the optimal values of K and L are

K = 385(24)4/5 and L = 24K = 385(24)1/5 .

It follows that the minimum cost is approximately given by

450(385)(24)4/5 + 75(385)(24)1/5 68, 151.

19. The problem can be formulated as

min q(x, y) = xy

s.t. 20xy 9x 4y = 48.

Using the method of Lagrange multipliers, we need to solve

   
y 10 y x 10 x
(i) = 9 (ii) = 4 and (iii) 20 xy 9x 4y = 48.
2 x x 2 y y
Dividing both sides of (i) and (ii) and rearranging the terms yield
   
y 10 x x 10 y 2 y 9 x
4 = 9 = 5 = 5 = 4y = 9x.
2 x y 2 y x x 2 y
9x
Hence we have y = 4 .
Substituting this into (iii) yields
r
9x2
20 9x 9x = 48 = 30x 18x = 48 = x = 4,
4
and so y = 9. Thus the optimal values are x = 4 and y = 9, and the minimum output is

q(4, 9) = 36 = 6.

9
20. The problem can be formulated as

max u(x, y) = 100x 3x2 + 2xy 4y 2 56
s.t. 5x + 5y = 220 (or equivalently, x + y = 44).

Using the method of Lagrange multipliers, we need to solve

(i) 100 6x + 2y = (ii) 2x 8y = and (iii) x + y = 44.

From (i) and (ii) we have

100 6x + 2y = 2x 8y = 4x = 5y + 50.

From (iii) we have y = 44 x. Putting this into 4x = 5y + 50 yields

4x = 5(44 x) + 50 = 9x = 270 = x = 30,

and so y = 44 30 = 14. Thus the optimal values are x = 30 and y = 14, and the maximum utility
is
u(30, 14) = 100(30) 3(30)2 + 2(30)(14) 4(14)2 56 = 300.

10