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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
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.
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.
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.
2
fxx (0, 0)fyy (0, 0) fxy (0, 0) = (0)(0) (9)2 = 81 < 0,
2
fxx (1, 1)fyy (1, 1) fxy (1, 1) = (18)(18) (9)2 = 243 > 0 and fxx (1, 1) = 18 > 0,
and
fy (x, y) = 6x2 y 8y 3 + 2y = 2y(3x2 4y 2 + 1).
fxx (x, y) = 24x2 + 6y 2 + 2, fxy (x, y) = fyx (x, y) = 12xy and fyy (x, y) = 6x2 24y 2 + 2.
2
fxx (0, 0)fyy (0, 0) fxy (0, 0) = (2)(2) 02 = 4 > 0 and fxx (0, 0) = 2 > 0,
4
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 .
Solving these equations we obtain q1 = 2 and q2 = 0. Hence (q1 , q2 ) = (2, 0) is the only critical
point of the profit function.
q1 q1 = 10, q1 q2 = 2 and q2 q2 = 4.
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
q1 q1 = 5, q1 q2 = 2 and q2 q2 = 6.
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.
(q1 , q2 ) = (a bq1 )q1 + (c dq2 )q2 (q12 + q22 ) = aq1 bq12 + cq2 dq22 q12 q22
= aq1 (b + 1)q12 + cq2 (d + 1)q22 .
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
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
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.
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
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,
that is,
5K 7/10 K 3/10 = L1/2 L1/2 .
K 3/10 (5K)1/2 = 28
8
and hence the optimal values of K and L are
(i) 450 = (14K 4/5 L4/5 ) (ii) 75 = (56K 1/5 L1/5 ) and (iii) 70K 1/5 L4/5 = 26, 950.
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).
100 6x + 2y = 2x 8y = 4x = 5y + 50.
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