Lecture 8

Derivatives and its applications (II)

1
Learning outcomes
• Use the product rule, quotient rule, chain rule and
general power rule to compute the derivatives of
complex functions.
• Compute derivatives of exponential and logarithmic
functions.
• Understand and derive marginal cost, revenue and
profit functions.
• Find the relative extrema of a function.

2
Product rule / Quotient rule
• If f and g are functions, then
d d d
éë f ( x ) g ( x ) ùû = f ( x ) éë g ( x ) ùû + g ( x ) éë f ( x ) ùû
dx dx dx

d d
g ( x ) éë f ( x ) ùû - f ( x ) éë g ( x ) ùû
d é f ( x) ù dx dx
ê ú =
dx ë g ( x ) û éë g ( x ) ùû
2

3
Example 8.1
• Find the derivative of the following functions.
(a) f ( x ) = ( x 2 + 6 ) ( 3x - 1)
d é 2
f ' ( x ) = ë( x + 6 ) ( 3 x - 1) ùû
dx
d d 2
= ( x + 6 ) ( 3 x - 1) + ( 3 x - 1) ( x + 6 )
2

dx dx
= ( x 2 + 6 ) ( 3) + ( 3 x - 1)( 2 x )
= 9 x 2 - 2 x + 18 4
Example 8.1
• Find the derivative of the following functions.
2x
(b) g ( x ) =
x -1
d d
d æ 2x ö (
x - 1) ( 2 x ) - ( 2 x ) ( x - 1)
g '( x) = ç = dx dx
÷
dx è x - 1 ø ( x - 1)
2

=
( x - 1)( 2 ) - ( 2 x )(1) 2 x - 2 - 2 x
= =
-2
( x - 1) ( x - 1) ( x - 1)
2 2 2

5
Chain rule / General power rule
• If h is the composite of two functions f and g, then
d
h '( x) = g éë f ( x ) ùû = g ' éë f ( x ) ùû f ' ( x )
dx

• If n is a real number and f is a function, then

d n -1
éë f ( x ) ùû = n éë f ( x ) ùû f ' ( x )
n

dx
6
Example 8.2
• Find the derivative of f(x) = (2x2 + 1)10.
d
f ' ( x ) = ( 2 x + 1)
2 10

dx
éd ù
= 10 ( 2 x + 1) êë dx ( )úû
10 -1
2
2 x 2
+ 1

= 10 ( 2 x + 1) ( 4 x )
2 9

= 40 x ( 2 x + 1)
2 9

7
Exponential functions
• The derivative of an exponential function with base e is
equal to itself.
d x
dx
( e ) = e x

• When the exponent is a function f, we use the chain rule

to obtain
d é f ( x) ù
f '( x)
f ( x)
ë e û = e
dx
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Example 8.3
• Find the derivative of the following functions.
(a) f ( x ) = 3e x + x 3
d
f ' ( x ) = éë3e x + x 3 ùû
dx
d x d 3
= 3 (e ) + ( x )
dx dx
= 3e x + 3 x 2
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Example 8.3
• Find the derivative of the following functions.
(b) g ( x ) = e3 x +1
d 3 x +1
g '( x) = (e )
dx
3 x +1 é d ù
= e ê ( 3 x + 1) ú
ë dx û
= e3 x +1 ( 3)
= 3e3 x +1 10
Logarithm functions
• The derivative of a logarithm function with base e is equal
to the reciprocal of x.
d 1
dx
( ln x ) =
x
• When the “inside” function is a function f, we use the
chain rule to obtain
d f '( x) 1
éëln f ( x ) ùû = or éë f ' ( x ) ùû
dx f ( x) f ( x)
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Example 8.4
• Find the derivative of the following functions.
(a) f ( x ) = ln ( x 2 + 1)
d é
f ' ( x ) = ëln ( x 2 + 1) ùû
dx
1 éd 2 ù
= 2 ê
x + 1 ë dx
( x + 1) ú
û
1 2x
= 2 ( 2x) = 2
x +1 x +1 12
Example 8.4
• Find the derivative of the following functions.
(b) g ( x ) = ln ( xe - x3
)
At times, it is necessary to use the laws of logarithms to
first simplify the given expression.

( ) = ln
1
g ( x ) = ln
3 3
-x -x - x3
xe x + ln e = ln x + ln e
2

1 1
= ln x - x ln e = ln x - x 3
3

2 2 13
Example 8.4
• Find the derivative of the following functions.
1
g ( x ) = ln x - x 3
2 d æ1 ö
g ' ( x ) = ç ln x - x 3 ÷
dx è 2 ø
1 d d 3
= ln x - x
2 dx dx
1
= - 3x 2
2x
14
More derivatives
• A function might need a combination of rules to compute
the derivative, e.g. chain rule with product rule

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Example 8.5(b)
• Find the derivative of the following functions
(b) g ( x ) = e 4 x ln x
d 4x 4x d d 4x
g ' ( x ) = ( e ln x ) = e ( ln x ) + ln x ( e )
dx dx dx
4x æ 1 ö 4x æ d ö
= ( e ) ç ÷ + ( ln x ) ( e ) ç 4 x ÷
èxø è dx ø
e4 x e 4x
= + ( ln x ) ( e 4 x ) ( 4 ) = + 4e 4 x ln x
x x 16
Exercise
• Try Discussion questions Q1, 2, and 3.

17
Marginal functions
• Marginal analysis is the study of the rate of change of
economic quantities, e.g. the rate at which a country’s
GDP is growing, how much the cost of a product
changes with respect to the level of production.
• We will examine marginal cost, revenue and profit
functions.

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Marginal cost function
• The total cost function C(x) gives the total cost required
to manufacture x units of the product.
• The marginal cost function gives the cost incurred in
producing an additional unit of a product.

Marginal cost function = C’ ( x )

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Average cost function
• The average cost function is computed by dividing the
total cost by the number of units produced (x).
C ( x)
Average cost function = C ( x ) =
x

• The marginal average cost function measures the rate

of change of the average cost function.
Marginal average cost function = C ' ( x )
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Example 8.6
• Debbie’s Electric Company manufactures tablet PCs. The company
determined that the weekly total cost of producing x tablet PCs is given
by the function
C ( x ) = 6000 + 200 x - 0.1x 2
• (a) What is the actual cost incurred for manufacturing the 201st tablet
PC?
• (b) Find the marginal cost function when x = 200 and interpret your
results.
• (c) Find the average cost function when x = 200 and interpret your
results.
• (d) Find the marginal average cost function and interpret your results.
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Example 8.6
(a) Total cost to manufacture 201 units = C ( 201)
= 6000 + 200 ( 201) - 0.1( 201)
2

= $42,159.90

Total cost to manufacture 200 units = C ( 200 )

= 6000 + 200 ( 200 ) - 0.1( 200 )
2

= $42, 000.00
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Example 8.6
Cost to manufacture 201st unit = C ( 201) - C ( 200 )
= 42,159.90 - 42, 000.00
= $159.90

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Example 8.6
d
(b) C ' ( x ) = ( 6000 + 200 x - 0.1x 2 ) = 200 - 0.2 x
dx
C ' ( 200 ) = 200 - 0.2 ( 200 ) = $160

Marginal cost is the cost needed to produce an additional

unit, i.e. $160 is approximately the cost needed to
produce the 201st unit.

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Example 8.6
C ( x) 6000 + 200 x - 0.1x 2 6000
(c ) C ( x ) = = = + 200 - 0.1x
x x x

6000
C ( 200 ) = + 200 - 0.1( 200 ) = $210
200

Each unit of tablet PC costs an average of $210 to make.

It is higher than the variable cost as it takes into account
fixed costs.
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Example 8.6
d æ 6000 ö 6000
(d ) C ' ( x ) = ç + 200 - 0.1x ÷ = - 2 - 0.1
dx è x ø x

Note that the marginal average cost function here is

always negative. This means that as the level of
production x increases, the average cost per unit
decreases.

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Revenue function
• Total revenue realised from the sale of x units and it is
given by R(x) = px where p is the selling price per unit.
• However, selling price of a product is dependent on its
demand in the market. If the demand equation is given
by p = f(x),
R ( x ) = px = xf ( x )
• The marginal revenue function gives the revenue
realized from an additional unit of a product.
Marginal revenue function = R’ ( x )
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Profit function
• The profit function is the difference between the total
revenue and total cost.
P ( x) = R ( x) – C ( x)

• The marginal profit function gives the profit realized

from an additional unit of a product.

Marginal profit function = P’ ( x )

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Example 8.7
• A company has determined that the total cost function in
manufacturing one unit of television set is given by C(x)
= 100x + 200,000. The monthly demand for the laptop is
given by the equation p = –0.02x + 400.
• (a) Find the revenue function and the marginal revenue
function.
• (b) Find the marginal profit function. Interpret the result
when x = 1000.

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Example 8.7
(a) R ( x ) = px = ( -0.02 x + 400 ) x = -0.02 x 2 + 400 x
Marginal revenue function = R ' ( x )
d
= ( -0.02 x 2 + 400 x )
dx
= -0.04 x + 400

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Example 8.7
(b) P ( x ) = R ( x ) - C ( x )
= -0.02 x 2 + 400 x - (100 x + 200, 000 )
= -0.02 x 2 + 300 x - 200, 000

Marginal profit = P ' ( x )

d
= ( -0.02 x 2 + 300 x - 200, 000 )
dx
= -0.04 x + 300
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Example 8.7
P ' (1000 ) = -0.04 (1000 ) + 300
= 340
The profit realized from the 1001st unit is $340.

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Exercise
• Try Discussion questions Q4 and 5.

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Increasing and decreasing functions
• A function f is said to be increasing on an interval (a, b)
if for any two numbers x1 and x2 in (a, b), f(x1) < f(x2)
whenever x1 < x2. Informally, this means that as x
increases, f(x) increases.

• A function f is said to be decreasing on an interval (a, b)

if for any two numbers x1 and x2 in (a, b), f(x1) > f(x2)
whenever x1 < x2. Informally, this means that as x
increases, f(x) decreases.
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Increasing and decreasing functions

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 Increasing and decreasing functions
• A function can be increasing and decreasing at various
intervals.
• Use the following technique to find these intervals
1. Find these values of x. These
values will form open intervals.

2. Select a test point c in the intervals

and determine the sign of f’(c). 36
Example 8.8
• Determine the intervals where the function f(x) = x3 –
3x2 – 24x + 32 is increasing or decreasing.
d 3
f ' ( x ) = ( x - 3x 2 - 24 x + 32 ) = 3 x 2 - 6 x - 24
dx

1 f ' ( x ) = 0 Þ 3 x 2 - 6 x - 24 = 0

- ( -6 ) ± ( -6 ) - 4 ( 3)( -24 )
2

x= = -2 or 4
2 ( 3)
37
 Example 8.8
2 The x values found in step 1 divide the number line into
the intervals (–∞, –2), (–2, 4) and (4, ∞).
3 Pick a test point in the interval c and check f’(c).

From the table, f is increasing in both the intervals (–∞, –2)

and (4, ∞) but decreasing in the interval (–2, 4). 38
Relative extrema
• Suppose f is a function defined on an interval (a, b) and
c is a number in the interval.
• The function f has a relative maximum at c if f(x) ≤ f(c)
for all x in (a, b), i.e. the value of f(x) is the highest point
within the interval.
• The function f has a relative minimum at c if f(x) ≥ f(c)
for all x in (a, b), i.e. the value of f(x) is the lowest point
within the interval.
• The relative maximum and minimum are known as the
relative extrema of the function. 39
Relative extrema
f’(x) = 0

f’(x) > 0 f’(x) < 0 f’(x) > 0

f’(x) = 0 40
First derivative test
1. First determine the x-coordinate by setting f’(x) = 0.
2. Check the sign of f’(x) to the left and right of x found in 1.
(i) If f’(x) changes from positive to negative, it is a relative
maximum.
(ii) If f’(x) changes from negative to positive, it is a relative
minimum.
(iii) If there is no change in sign, it is not a relative extrema.
3. Compute the relative maximum or minimum by finding the
value of f(x) at that point.
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Example 8.9
• Find and determine the nature of the relative extrema of
the function f(x) = x3 – 3x2 – 24x + 32.

From previous example, f ' ( x ) = 3 x 2

- 6 x - 24
1 f '( x) = 0
3 x 2 - 6 x - 24 = 0
x = -2 or 4

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 Example 8.9
2 Choose a value of x to the left and right of the relative
extrema. Then determine the slope of the curve at those
values.

3 Relative maximum = f(–2) Relative minimum = f(4)

= (–2)3 – 3(–2)2 – 24(–2) + 32 = (4)3 – 3(4)2 – 24(4) + 32
= 60 = –48 43
Exercise
• Try Discussion questions Q6 and 7.

44