APPLICATIONS

OF DIFFERENTIATION-II 4
The concept of maxima and minima is applied in Economics
to study profit maximisation, inventory control and economic order
quantity.
We also learn what a partial derivative is and how to calculate
it. Application of partial derivatives are also discussed with the
production function, marginal productivities of labour and capital
and with partial elasticities of demand.
4.1 MAXIMA AND MINIMA
4.1.1 Increasing and Decreasing Functions
A function y = f(x) is said to be an increasing function of x
in an interval, say a < x < b, if y increases as x increases. i.e. if
a < x 1 < x 2 < b, then f(x 1 ) < f(x 2 ).
A function y = f(x) is said to be a decreasing function of x
in an interval, say a < x < b, if y decreases as x increases.
i.e. if a < x 1 < x 2 < b, then f(x 1 ) > f(x 2 ).
4.1.2. Sign of the derivative
Let f be an increasing function defined in a closed interval
[a,b]. Then for any two values x 1 and x 2 in [a, b] with x 1 < x 2 ,
we have f(x 1 ) < f(x 2 ).
∴ f(x 1 ) < f(x 2 ) and x 2 − x 1 > 0
f ( x 2 ) − f ( x1 )
⇒ >0
x2 − x1
Lt f ( x 2 ) − f ( x1 )
⇒ x2 → x1 > 0, if this limit exists.
x2 − x1
⇒ f ′(x) > 0 for all x ∈[a,b].
Similarly, if f is decreasing on [a,b] then f ′(x) < 0, if the
derivative exists.
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 The converse holds with the additional condition, that f is
continuous on [a, b].
Note
Let f be continuous on [a,b] and has derivative at each point
of the open interval (a,b), then
(i) If f ′(x) > 0 for every x ∈ (a,b), then f is strictly increasing on
[a,b]
(ii) If f ′(x) < 0 for every x ∈ (a,b), then f is strictly decreasing
on [a,b]
(iii) If f ′(x) = 0 for every x ∈ (a,b), then f is a constant function
on [a,b]
(iv) If f ′(x) > 0 for every x ∈ (a,b), then f is increasing on [a,b]
(v) If f ′(x) < 0 for every x ∈ (a,b), then f is decreasing on [a,b]
The above results are used to test whether a given function is
increasing or decreasing.
4.1.3 Stationary Value of a Function
A function y = f(x) may neither be an increasing function nor
be a decreasing function of x at some point of the interval [a,b]. In
such a case, y = f(x) is called stationary at that point. At a stationary
point f ′(x) = 0 and the tangent is parallel to the x - axis.
Example 1
If y = x- 1 , prove that y is a strictly increasing function
x
for all real values of x. (x ≠ 0)
Solution :
1
We have y = x −
x
Differentiating with respect to x, we get
dy = 1 + 1 > 0 for all values of x, except x = 0
dx x2
∴ y is a strictly increasing function for all real values of x. (x ≠0)
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Example 2
If y = 1+ 1 , show that y is a strictly decreasing function
x
for all real values of x. (x ≠ 0)
Solution :
We have y = 1 + 1
x
dy 1
= 0 − 2 < 0 for all values of x. (x ≠ 0)
dx x
∴ y is a strictly decreasing function for all real values of x.
(x ≠0)
Example 3
Find the ranges of values of x in which 2x3 − 9x2 +12x + 4
is strictly increasing and strictly decreasing.
Solution :
Let y = 2x 3 − 9x 2 + 12x + 4
dy
= 6x 2 − 18x + 12
dx
= 6(x 2 − 3x + 2)
= 6(x − 2) (x − 1)
dy
> 0 when x < 1 or x > 2
dx
x lies outside the interval (1, 2).
dy
< 0 when 1 < x < 2
dx
∴ The function is strictly increasing outside the interval [1, 2]
and strictly decreasing in the interval (1, 2)
Example 4
Find the stationary points and the stationary values of
the function f(x) = x3 − 3x2 − 9x + 5.
Solution :
Let y = x 3 − 3x 2 − 9x + 5
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 dy
= 3x 2 − 6x − 9
dx
dy
At stationary points, =0
dx
∴3x 2 − 6x − 9 = 0
⇒ x 2 − 2x − 3 = 0
⇒ (x + 1) (x − 3) = 0
The stationary points are obtained when x = -1 and x = 3
when x = -1, y = (−1) 3 − 3(−1) 2 − 9(−1) + 5 = 10
when x = 3, y = (3)3 − 3(3)2 − 9(3) + 5 = -22
∴ The stationary values are 10 and −22
The stationary points are (−1, 10) and (3, −22)
Example 5
For the cost function C = 2000 + 1800x − 75x2 + x3 find
when the total cost (C) is increasing and when it is decreasing.
Also discuss the behaviour of the marginal cost (MC)
Solution :
Cost function C = 2000 + 1800x − 75x 2 + x 3
dC = 1800 − 150x + 3x 2
dx
dC = 0 ⇒ 1800 − 150x + 3x 2 = 0
dx
⇒ 3x 2 − 150x + 1800 = 0
⇒ x 2 − 50x + 600 = 0
⇒ (x − 20) (x − 30) = 0
⇒ x = 20 or x = 30

0 20 30
For ,
(i) 0 < x < 20, dC > 0 (i) x = 10 then dC s=600 > 0
dx dx
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(ii) 20 < x < 30, dC < 0 (ii) x =25 then dC = −75<0
dx dx
dC dC
(iii) x > 30 ; >0 (iii) x = 40 then = 600 > 0
dx dx

∴ C is increasing for 0 < x < 20 and for x > 30.

C is decreasing for 20 < x < 30
d
MC = (C)
dx
∴ MC = 1800 − 150x + 3x 2
d
(MC) = −150 + 6x
dx
d
(MC) = 0 ⇒ 6x = 150
dx
⇒ x = 25.

0 25
For,
d d
(i) 0 < x < 25, (MC) < 0 (i) x =10 then (MC)=−90< 0
dx dx
d d
(ii) x > 25, (MC) >0 (ii) x = 30 then (MC)=30 > 0
dx dx
∴ MC is decreasing for x < 25 and increasing for x > 25.

4.1.4 Maximum and Minimum Values

Let f be a function defined on [a,b] and c an interior point
of [a,b] (i.e.) c is in the open interval (a,b). Then
(i) f(c) is said to be a maximum or relative maximum of the
function f at x = c if there is a neighbourhood (c−δ , c + δ) of
c such that for all x ∈ (c − δ, c + δ) other than c, f(c) > f(x)
(ii) f(c) is said to be a minimum or relative minimum of the function
f at x = c if there is a neighbourhood (c − δ, c + δ) of c such
that for all x ∈ (c − δ, c + δ) other than c, f(c) < f(x).

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(iii) f(c) is said to be an extreme value of f or extremum at c if it
is either a maximum or minimum.
4.1.5 Local and Global Maxima and Minima
Consider the graph (Fig. 4.1) of the function y = f(x).
y
V7 B

V3
V1 V5 V8

V6
V4
A V2
O x
Fig. 4.1

The function y = f(x) has several maximum and minimum

dy
points. At the points V1 , V2 , ...V8 , = 0. In fact the function has
dx
maxima at V1 , V3 , V5 , V7 and minima at V2 , V4 , V6 , V8 . Note that
maximum value at V5 is less than the minimum value at V8 . These
maxima and minima are called local or relative maxima and minima.
If we consider the part of the curve between A and B then the
function has absolute maximum or global maximum at V7 and
absolute minimum or global minimum at V2 .
Note
By the terminology maximum or minimum we mean local
maximum or local minimum respectively.
4.1.6. Criteria for Maxima and Minima.
Maximum Minimum
dy dy
Necessary condition =0 =0
dx dx
dy d2y dy d y 2

Sufficient condition =0; 2 <0 = 0; 2 >0

dx dx dx dx
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4.1.7 Concavity and Convexity
Consider the graph (Fig. 4.2) of the function y = f(x).
Let PT be the tangent to the curve y = f(x) at the point P.
The curve (or an arc of the curve) which lies above the tangent line
PT is said to be concave upward or convex downward.
y y = f(x)

O T x
Fig. 4.2

The curve (or an arc of the curve) which lies below the tangent
line PT (Fig. 4.3) is said to be convex upward or concave downward.
y

P y = f(x)

O T Fig. 4.3 x

4.1.8 Conditions for Concavity and Convexity.

Let f(x) be twice differentiable. Then the curve y = f(x) is
(i) concave upward on any interval if f ′′(x) > 0
(ii) convex upward on any interval if f ′′(x) < 0
4.1.9 Point of Inflection
A point on a curve y = f(x), where the concavity changes
from upto down or vice versa is called a Point of Inflection.
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 1
For example, in y = x 3 (Fig. 4.4) has a point of inflection at x = 0
y 1
y= x3

O x

Fig. 4.4

4.1.10 Conditions for point of inflection

A point (c, f(c)) on a curve y = f(x) is a point of inflection
(i) if f ′′(c) = 0 or f ′′(c) is not defined and (ii) if f ′′(x) changes sign
as x increases through c i.e. f ′′′(c) ≠ 0 when f ′′′(x) exists
Example 6
Investigate the maxima and minima of the function
2x3 + 3x2 − 36x + 10.
Solution :
Let y = 2x 3 + 3x 2 − 36x + 10
Differentiating with respect to x, we get
dy
= 6x 2 + 6x − 36 --------(1)
dx
dy
= 0 ⇒ 6x 2 + 6x − 36 = 0
dx
⇒ x2 + x − 6 = 0
⇒ (x + 3) (x − 2) = 0
⇒ x = −3, 2
Again differentiating (1) with respet to x, we get
d2y
= 12x + 6
dx 2
d2y
when x = −3, = 12 (−3) + 6 = −30 < 0
dx 2
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 ∴ It attains maximum at x = −3
∴ Maximum value is y = 2(−3) 3 + 3(−3) 2 − 36(−3) + 10 = 91
d2y
when x =2, = 12(2) + 6 = 30 > 0
dx 2
∴ It attains minimum at x = 2
∴ Minimum value is y = 2(2)3 + 3(2)2 − 36(2) + 10 = −34
Example 7
Find the absolute (global) maximum and minimum values
of the function f(x) = 3x5 − 25x3 + 60x + 1 in the interval
− 2, 1]
[−
Solution :
Given f(x) = 3x 5 − 25x 3 + 60x + 1
f 1 (x) = 15x 4 − 75x 2 + 60
The necessary condition for maximum and minimum is
f ′(x) = 0
⇒ 15x 4 − 75x 2 + 60 = 0
⇒ x 4 − 5x 2 + 4 = 0
⇒ x 4 − 4x 2 - x 2 + 4 = 0
⇒ (x 2 − 1) (x 2 − 4) = 0
∴ x = +1, -2, (2∉ [−2, 1])
f ′′(x) = 60x 3 − 150x
f ′′(−2) = 60(−2) 3 − 150(−2) = −180 < 0
∴ f(x) is maximum.
f ′′(−1) = 60(−1) 3 − 150(-1) = 90 > 0
∴ f(x) is minimum.
f ′′(1) = 60(1)3 − 150(1) = −90 < 0
∴ f(x) is maximum.
The maximum value when x = −2 is
f(−2) = 3(−2) 5 − 25(−2) 3 + 60(−2) + 1 = -15
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The minimum value when x = −1 is
f(−1) = 3(−1) 5 − 25(−1) 3 + 60(−1) + 1 = -37
The maximum value when x = 1 is
f(1) = 3(1)5 − 25(1)3 + 60(1) + 1 = 39
∴ Absolute maximum value = 39.
and Absolute minimum value = −37
Example 8
What is the maximum slope of the tangent to the curve
y = -x3 + 3x2 +9x − 27 and at what point is it?
Solution :
We have y = −x 3 + 3x 2 +9x − 27
Differentiating with respect to x, we get
dy
= −3x 2 + 6x +9
dx
∴ Slope of the tangent is −3x 2 +6x + 9
Let M = −3x 2 +6x + 9
Differenating with respect to x, we get
dM
= −6x + 6 ------------(1)
dx
dM d 2M
Slope is maximum when = 0 and <0
dx dx 2
dM
= 0 ⇒ −6x + 6 = 0
dx
⇒ x=1
Again differentiating (1) with respect to x, we get
d 2M
= −6 < 0, ∴ M is maximum at x = 1
dx 2
∴ Maximum value of M when x = 1 is
M = −3(1)2 + 6(1)+9 = 12
When x = 1 ; y = −(1)3 +3(1)2 +9(1)−27 = -16
∴ Maximum slope = 12
The required point is (1, -16)
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Example 9
Find the points of inflection of the curve
y = 2x4 − 4x3 + 3.
Solution :
We have y = 2x 4 − 4x 3 + 3
Differentiate with respect to x , we get
dy
= 8x 3 − 12x 2
dx
d2y
= 24x 2 − 24x
dx 2
d2y
= 0 ⇒ 24x (x − 1) = 0
dx 2
⇒ x = 0, 1
d3y
= 48x − 24
dx 3
d3y
when x = 0, 1 ≠0.
dx 3
∴ points of inflection exist.
when x = 0, y = 2(0)4 − 4(0)3 + 3 = 3
when x = 1, y = 2(1)4 − 4(1)3 + 3 = 1
∴ The points of inflection are (0, 3) and (1, 1)
Example 10
Find the intervals on which the curve f(x) = x3 − 6x2 +9x−
−8
is convex upward and convex downward.
Solution :
We have f(x) = x 3 − 6x 2 + 9x − 8
Differentiating with respect o x,
f ′(x) = 3x 2 − 12x + 9
f ′′(x) = 6x − 12
f ′′(x) = 0 ⇒ 6(x − 2) = 0 ∴ x = 2

-∞ 2 ∞
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