CALCULUS OF

8 SEVERAL
VARIABLES

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8.2 Partial Derivatives

Copyright © Cengage Learning. All rights reserved.

Partial Derivatives

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Partial Derivatives
Let us study the rate of change of the function f (x, y) at a
point (a, b) in each of two preferred directions—namely, the
direction parallel to the x-axis and the direction parallel to
the y-axis.

Let y = b, where b is a constant, so that f (x, b) is a function

of the one variable x.

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Partial Derivatives
Since the equation z = f (x, y) is the equation of a surface,
the equation z = f (x, b) is the equation of the curve C on the
surface formed by the intersection of the surface and the
plane y = b (Figure 13).

The curve C is formed by the intersection

of the plane y = b with the surface z = f (x, y).
Figure 13
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Partial Derivatives

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Example 1
Find the partial derivatives and of the function

f (x, y) = x2 – xy2 + y3

What is the rate of change of the function f in the

x-direction at the point (1, 2)?

What is the rate of change of the function f in the

y-direction at the point (1, 2)?

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Example 1 – Solution
To compute , think of the variable y as a constant and
differentiate the resulting function of x with respect to x.
Let’s write

f (x, y) = x2 – xy2 + y3

where the variable y to be treated as a constant is shown in

color.

Then,

= 2x – y2
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Example 1 – Solution cont’d

To compute , think of the variable x as being fixed—that

is, as a constant—and differentiate the resulting function of
y with respect to y.

In this case,

f (x, y) = x2 – xy2 + y3

so

= –2xy + 3y2

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Example 1 – Solution cont’d

The rate of change of the function f in the x-direction at the

point (1, 2) is given by

= 2(1) – 22 = –2

That is, f decreases 2 units for each unit increase in the

x-direction, y being kept constant (y = 2).

The rate of change of the function f in the y-direction at the

point (1, 2) is given by
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Example 1 – Solution cont’d

= –2(1)(2) + 3(22) = 8

That is, f increases 8 units for each unit increase in the

y-direction, x being kept constant (x = 1).

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Partial Derivatives
To compute the partial derivative of a function of several
variables with respect to one variable—say, x—we think of
the other variables as if they were constants and
differentiate the resulting function with respect to x.

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The Cobb–Douglas Production Function

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The Cobb–Douglas Production Function
For an economic interpretation of the first partial derivatives
of a function of two variables, let’s turn our attention to the
function

f (x, y) = axby1 – b

where a and b are positive constants with 0 < b < 1. This

function is called the Cobb–Douglas production function.

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The Cobb–Douglas Production Function
Here, x stands for the amount of money expended for
labor, y stands for the cost of capital equipment (buildings,
machinery, and other tools of production), and the function
f measures the output of the finished product (in suitable
units) and is called, accordingly, the production function.

The partial derivative fx is called the marginal productivity of

labor.

It measures the rate of change of production with respect to

the amount of money expended for labor, with the level of
capital expenditure held constant.
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The Cobb–Douglas Production Function
Similarly, the partial derivative fy, called the marginal
productivity of capital, measures the rate of change of
production with respect to the amount expended on capital,
with the level of labor expenditure held fixed.

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Example 4 – Marginal Productivity
A certain country’s production in the early years following
World War II is described by the function

f (x, y) = 30x2/3y1/3

units, when x units of labor and y units of capital were used.

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Applied Example 4 – Marginal Productivity

a. Compute fx and fy.

b. What is the marginal productivity of labor and the

marginal productivity of capital when the amounts
expended on labor and capital are 125 units and
27 units, respectively?

c. Should the government have encouraged capital

investment rather than increasing expenditure on labor
to increase the country’s productivity?

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Applied Example 4 – Solution

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Applied Example 4 – Solution
b. The required marginal productivity of labor is given by

or 12 units per unit increase in labor expenditure (capital

expenditure is held constant at 27 units).

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Applied Example 4 – Solution cont’d

The required marginal productivity of capital is given by

or units per unit increase in capital expenditure

(labor outlay is held constant at 125 units).

c. From the results of part (b), we see that a unit increase

in capital expenditure resulted in a much faster increase

in productivity than a unit increase in labor expenditure
would have. 21
Applied Example 4 – Solution cont’d

Therefore, the government should have encouraged

increased spending on capital rather than on labor
during the early years of reconstruction.

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Substitute and Complementary
Commodities

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Substitute and Complementary Commodities

For another application of the first partial derivatives of a

function of two variables in the field of economics, let’s
consider the relative demands of two commodities.

We say that the two commodities are substitute

(competitive) commodities if a decrease in the demand for
one results in an increase in the demand for the other.

Examples of substitute commodities are coffee and tea.

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Substitute and Complementary Commodities

Conversely, two commodities are referred to as

complementary commodities if a decrease in the demand
for one results in a decrease in the demand for the other as
well.

Examples of complementary commodities are automobiles

and tires.

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Substitute and Complementary Commodities

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Applied Example 5 – Substitute and Complementary Commodities

Suppose that the daily demand for butter is given by

and the daily demand for margarine is given by

where p and q denote the prices per pound (in dollars) of

butter and margarine, respectively, and x and y are
measured in millions of pounds.

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Example 5 – Solution
Determine whether these two commodities are substitute,
complementary, or neither.

Solution:
We compute

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Applied Example 5 – Solution cont’d

Since

for all values of p > 0 and q > 0, we conclude that butter

and margarine are substitute commodities.

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Second-Order Partial Derivatives

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Second-Order Partial Derivatives
The first partial derivatives fx (x, y) and fy (x, y) of a function
f (x, y) of the two variables x and y are also functions of x
and y.

As such, we may differentiate

each of the functions fx and fy
to obtain the second-order
partial derivatives of f
(Figure 15).
A schematic showing the four second
order partial derivatives of f

Figure 15

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Second-Order Partial Derivatives
Thus, differentiating the function fx with respect to x leads to
the second partial derivative

However, differentiation of fx with respect to y leads to the

second partial derivative

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Second-Order Partial Derivatives
Similarly, differentiation of the function fy with respect to x
and with respect to y leads to

respectively. Although it is not always true that fxy = fyx, they

are equal, however, if both fxy and fyx are continuous.

We might add that this is the case in most practical

applications. 33
Example 6
Find the second-order partial derivatives of the function

f (x, y) = x3 – 3x2y + 3xy2 + y2

Solution:
The first partial derivatives of f are

fx = (x3 – 3x2y + 3xy2 + y2 )

= 3x2 – 6xy + 3y2

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Example 6 – Solution cont’d

fy = (x3 – 3x2y + 3xy2 + y2)

= –3x2 + 6xy + 2y

Therefore,

fxx = (fx)

= (3x2 – 6xy + 3y2)

= 6x – 6y

= 6(x – y)
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Example 6 – Solution cont’d

fxy = (fx)

= (3x2 – 6xy + 3y2)

= –6x + 6y

= 6(y – x)

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Example 6 – Solution cont’d

fyx = (fy)

= (–3x2 + 6xy + 2y)

= –6x + 6y

= 6(y – x)

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Example 6 – Solution cont’d

fyy = (fy)

= (–3x2 + 6xy + 2y)

= 6x + 2

Note that fxy = fyx everywhere.

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