CHAITEH 9

ExercIse 9.2
1. (a) )

(a) = 4a 8 = 0 i a = 2; lho slalionaiy valuo )(2) = 1 is a iolalivo maximum.

(L) )

(a) = 10a 1 = 0 i a = 110; )( 110) = 120 is a iolalivo minimum.

(c) )

(a) = 6a = 0 i a = 0; )(0) = 8 is a iolalivo minimum.

2.
(a) Solling )

(a) = 8a
2
8 = 0 yiolos lwo ciilical valuos, 1 ano 1. 1ho lalloi is oulsioo lho
oomain; lho foimoi loaos lo )(1) = 8, a iolalivo minimum.
(L) 1ho only ciilical valuo is a = 1; )(1) = 10
1
8
is a poinl of inoclion.
(c) Solling )

(a) = 8a
2
0a 6 = 0 yiolos lwo ciilical valuos, 1 ano 2; )(1) = 8. is a
iolalivo minimum Lul )(2) = 4 is a iolalivo maximum.
8. Whon a = 1, wo havo j = 2 (a minimum); whon a = 1, wo havo j = 2 (a maximum).
1hoso aio in lho naluio of iolalivo oxlioma, lhus a minimum can oxcooo a maximum.
4. (a) ` =

(a), = (a)a
(L) Whon ioachos a iolalivo oxliomum, wo musl havo
d
da
=
1
a
2
[a

(a) (a)[ = 0
1his occuis only whon a

(a) = (a), lhal is, only whon

(a) = (a)a, oi only whon
` = .
(c) 1ho maiginal ano avoiago cuivos musl inloisocl whon lho lalloi ioachos a poak oi a
liough.
(o) c =
`

= 1 whon ` = .
ExercIse 9.3
1. (a) )

(a) = 2aa /; )

(a) = 2a; )

(a) = 0
(L) )

(a) = 28a
3
8; )

(a) = 84a
2
; )

(a) = 168a
1
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(c) )

(a) = 8(1 a)
2
; )

(a) = 6(1 a)
3
; )

(a) = 18(1 a)
d
(o) )

(a) = 2(1 a)
2
; )

(a) = 4(1 a)
3
; )

(a) = 12(1 a)
d
2. (a) ano (L)
8. (a) An oxamplo is a mooioo voision of lho cuivo in Fig. 0.a, wilh lho aic AL ioplacoo Ly
a lino sogmonl 1.
(L) A sliaighl lino.
4. Sinco djda = /(c a)
2
0, ano d
2
jda
2
= 2/(c a)
3
< 0, lho cuivo musl show
j incioasing al a oocioasing ialo. 1ho voilical inloicopl (whoio a = 0) is a
/
c
. whon a
appioachos innily, j lonos lo lho valuo a, which givos a hoiizonlal asymplolo. 1hus lho
iango of lho funclion is lho inloival [a
/
c
, a). 1o uso il as a consumplion funclion, wo shoulo
slipulalo lhal:
a
/
c
[so lhal consumplion is posilivo al zoio incomo [
/ c
2
[so lhal `1C = djda is a posilivo fiaclion lhioughoul [
. lho funclion )(a) plols as a sliaighl lino, ano p(a) plols as a cuivo wilh oilhoi a poak oi a
Lollom oi an inoclion poinl al a = 8. In loims of slalionaiy poinls, ovoiy poinl on )(a) is a
slalionaiy poinl, Lul lho only slalionaiy poinl on p(a) wo know of is al a = 8.
(a) 1ho ulilily funclion shoulo havo )(0) 0, )

(a) 0, ano )

(a) = 0 foi all x. Il plols as

an upwaio-sloping sliaighl lino omanaling fiom lho poinl of oiigin.
(L) In lho piosonl caso, lho MN lino sogmonl woulo coincioo wilh lho ulilily cuivo. 1hus
poinls A ano L lio on lop of oach olhoi, ano l(1) = 1l.
ExercIse 9.4
1. (a) )

(a) = 4a8; )

(a) = 4. 1ho ciilical valuo is a = 2; lho slalionaiy valuo )(2) = 88

is a maximum.
(L) )

(a) = 8a
2
12a; )

(a) = 6a 12. 1ho ciilical valuos aio 0 ano 4. )(0) = 0

is a minimum, Locauso )

(0) = 12 0, Lul )

( 4) = 41 is a maximum, Locauso
)

( 4) = 12 < 0.
2
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(c) )

(a) = a
2
6a ; )

(a) = 2a 6. 1ho ciilical valuos aio 1 ano . )(1) =

1
8
is a
maximum Locauso )

(1) = 4, Lul )() =

1
8
is a minimum Locauso )

() = 4.
(o) )

(a) = 2(1 2a)

2
= 0 foi any valuo of a; lhoio oxisls no iolalivo oxliomum.
2. Lxcluoing lho wall sioo, lho olhoi lhioo sioos musl salisfy 1 2\ = 64fl, oi 1 = 64 2\.
1ho aioa is lhoiofoio
= \1 = \(64 2\) = 64\ 2\
2
1o maximizo , il is nocossaiy lhal dd\ = 64 4\ = 0, which can occui only whon
\ = 16. 1hus
\ = 16fl 1 = 64 2\ = 82fl = \1 = 12fl
2
Inasmuch as d
2
d\
2
= 4 is nogalivo, is a maximum.
8. (a) Yos.
(L) Fiom lho oomano funclion, wo isl gol lho AI funclion 1 = 100 Q. 1hon wo havo
1 = 1Q = (100 Q)Q = 100Q Q
2
.
(c) = 1 C =
1
8
Q
3
6Q
2
11Q 0
(o) Solling d dQ = Q
2
12Q 11 = 0 yiolos lwo ciilical valuos 1 ano 11. Only Q = 11
givos a maximum piol.
(o) Maximum piol = 111
1
8
4. If L=0, lhon lho MC-minimizing oulpul lovol Locomos Q =
/
8a
= 0. Wilh ils minimum al
zoio oulpul. 1ho MC cuivo musl Lo upwaio-sloping lhioughoul. Sinco lho incioasing sogmonl
of MC is associaloo wilh lho convox sogmonl of lho C cuivo, / = 0 implios lhal lho C cuivo
will Lo convox lhioughoul.
. (a) 1ho isl assumplion moans (0) < 0. Sinco (0) = /, wo nooo lho iosliiclion / < 0.
(L) Sliicl concavily moans

(Q) < 0. Sinco

(Q) = 2/, wo shoulo havo / < 0.
(c) 1ho lhiio assumplion moans

(Q ) = 0, oi 2/Q = 0. Sinco Q = 2/, ano sinco
/ < 0, lho posilivily of Q ioquiios lhal 0.
6. (a) Q = )(1); 1 = 1
0
Q = 1
0
)(1); C = \
0
1 1; = 1 C = 1
0
)(1) \
0
1 1
8
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(L) d d1 = 1
0
)

(1) \
0
= 0, oi 1
0
)

(1) = \
0
. 1ho valuo of maiginal piooucl musl Lo
oqualoo lo lho wago ialo.
(c) d
2
d1
2
= 1
0
)

(1). If )

(1) < 0 (oiminishing MII

I
), lhon wo can Lo suio lhal piol
is maximizoo Ly 1 .
7. (a) o =
d
dQ
1 = 28 2.2Q 0.04Q
2
(L)
do
dQ
= 2.2 0.108Q = 0 al Q = 20.87 (appioximaloly); sinco
d
2
o
dQ
2
= 0.108 < 0, Q
will maximizo o.
o
nax
= o
=
= 28 2.2(20.87) 0.04(20.87)
2
= 0.0(appioximaloly).
(c) Sinco o
nax
is nogalivo, all o valuos musl Lo nogalivo.
ExercIse 9.5
1. (a) 120 (L) 40820 (c)
4(8!)
8!
= 4 (o)
(6)()(4!)
4!
= 6 = 80
(o)
(: 2)(: 1):!
:!
= (: 2)(: 1)
2. (a)
(a) = (1 a)
l
so lhal (0) = 1

(a) = (1 a)
2
(0) = 1

(a) = 2(1 a)
3
(0) = 2

(a) = 6(1 a)
d
(0) = 6
(d)
(a) = 24(1 a)
5 (d)
(0) = 24
1hus, accoioing lo (0.14), lho isl vo loims aio 1 a a
2
a
3
a
d
(L)
(a) = (1 a)(1 a) so lhal (0) = 1

(a) = 2(1 a)
2
(0) = 2

(a) = 4(1 a)
3
(0) = 4

(a) = 12(1 a)
d
(0) = 12
(d)
(a) = 48(1 a)
5 (d)
(0) = 48
1hus, Ly (0.14), lho isl vo loims aio 1 2a 2a
2
2a
3
2a
d
4
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8. (a) ( 2) = 18,

( 2) = 10,

( 2) = 227,

( 2) = 681, ano
(d)
( 2) = 24248.
1hus, Ly (0.14),
(a) =
1
8

1
0
(a 2)
1
27
(a 2)
2

1
81
(a 2)
3

1
248
(a 2)
d
1
d
=
1
248
(211 181a 1a
2
11a
3
a
d
) 1
d
(L) ( 2) = 8,

( 2) = 2,

( 2) = 4,

( 2) = 12, ano
(d)
( 2) = 48. 1hus,
Ly (0.14),
(a) = 8 2(a 2) 2(a 2)
2
2(a 2)
3
2(a 2)
d
1
d
= 68 08a 62a
2
18a
3
2a
d
1
d
4. Whon a = a
0
, all lho loims on lho iighl of (0.14) oxcopl lho isl ono will oiop oul (incluoing
1

), loaving lho iosull (a) = (a

0
).
ExercIse 9.6
1. (a) )

(a) = 8a
2
= 0 only whon a = 0, lhus )(0) = 0 is lho only slalionaiy valuo. 1ho isl
nonzoio ooiivalivo valuo is )

(0) = 6; so )(0) is an inoclion poinl.

(L) )

(a) = 4a
3
= 0 only whon a = 0. 1ho slalionaiy valuo )(0) = 0 is a iolalivo maximum
Locauso lho isl nonzoio ooiivalivo valuo is )
(d)
(0) = 24.
(c) )

(a) = 6a
5
= 0 only whon a = 0. 1ho slalionaiy valuo )(0) = is a iolalivo minimum
sinco lho isl nonzoio ooiivalivo valuo is )
(6)
(0) = 720.
2. (a) )

(a) = 8(a 1)
2
= 0 only whon a = 1. 1ho isl nonzoio ooiivalivo valuo is )

(1) = 6.
1hus lho slalionaiy valuo )(1) = 16 is associaloo wilh an inoclion poinl.
(L) )

(a) = 4(a 2)
3
= 0 only whon a = 2. Sinco lho isl nonzoio ooiivalivo valuo is
)
(d)
(2) = 24, lho slalionaiy valuo )(2) = 0 is a iolalivo minimum.
(c) )

(a) = 6(8 a)
5
= 0 only whon a = 8. Sinco lho isl nonzoio ooiivalivo valuo is
)
(6)
(8) = 720, lho slalionaiy valuo )(8) = 7 is a iolalivo minimum.
(o) )

a) = 8( 2a)
3
= 0 only whon a = 2.,. Sinco lho isl nonzoio ooiivalivo valuo is
)
(d)
(2.) = 884, lho slalionaiy valuo )(2.) = 8 is a iolalivo minimum.

Chiang/Wainwright. Fundamental Methods of Mathematical Economics Instructors Manual