UGBS 202 – BUSINESS MATHEMATICS
TUTORIAL SET 2 (ECONOMIC APPLICATIONS OF DIFFERENTIATION)
FEBRUARY 2016
Not to be submitted
1. If 𝑓(𝑥) = 6𝑥 3 = 12𝑥 2 + 6𝑥 − 2, find all higher order derivatives
2
2. Find the second order derivative of 𝑦 = 𝑒 𝑥
3. If 𝑦 = ln(2𝑥 2 + 3)4 , find the second derivate of y at 𝑥 = 1
4. Find the critical point(s) of the following if they exist:
a. 𝑦 = ln(4𝑥 2 + 5𝑥 + 2)
b. R( x) 12 x 2 x 2 16
5. You have opened a shoe factory and you are trying to figure out the amount of thousands of pairs
of shoes to produce in order to optimise your profit. Suppose a wholesaler is willing to pay 10
cedis for every pair of shoe sold. After consulting a financial expert, you realise that your average
cost is given as y x 2 6 x 15 . Where x is given as the amount of shoes to produce (in
thousands).
a. If you are restricted by the market to produce a maximum of 4000 pairs of shoes. How
many pairs of shoes do you need to produce in order to optimise your profit?
b. Will your answer in (a) above change if you are not restricted to produce up to a specific
number of shoes
6. Given that a function is given as 𝑟(𝑞) = 100𝑞 + 2𝑞 2, what is the point at which the derivative
of r with respect to q is zero? Hence find whether this point is a maximum or a minimum point.
7. The demand function of a product for a manufacturer is𝑝 (𝑥) = 𝑎𝑥 + 𝑏. The manufacturer
knows that he can sell 1250 units when the price is GHS5 per unit and he can sell 1500 units at a
price of GHS4 per unit. Find the total, average and marginal revenue functions. Also find the price
per unit when the marginal revenue is zero.
8. The manufacturing cost of an item is 6000cedis as overheads, material cost is given as 5cedis per
unit and the cost of labour is 1/60 of the square of the number of units produces. Find how many
units that must be produced such that the average cost is a minimum.
9. A manufacturer can produce at most 60 units of a certain product each year. The demand equation
for the product is 𝑝 = 𝑞 2 − 50𝑞 + 800 and his average function is given as:
2 5000
𝑐̅ = 3 𝑞 2 − 20𝑞 + .
𝑞
a. Determine the profit maximising output and the corresponding maximum profit.
b. If the manufacturer is not restricted in his production capacity, how will it affect your
answer in (a) above?
10. A cotton dealer finds that when coats sell for GHS 4000, monthly sales are 6 coats. When the price
increases to GHS5000, the demand is for 5 coats. Assume that the demand equation is linear.
a. Find the demand and revenue equations.
b. If overheads cost is GHS 2500 per month and the production cost per coat is GHS 2000,
find the cost equation and profit equation.
c. Find the level of production that maximizes profit and the maximum profit
11. A TV company currently has 100,000 subscribers paying a monthly rate of GHS40. A marketing
research indicates that there will be 1000 more subscribers for every 25 pesewas decrease in the
rate. At what rate will maximum revenue be attained? And how many subscribers will there be at
this rate?
12. A manufacturer for a product determines that, for its first 600 units of the products sold, their
profit is GHS40 per unit. The profit on each of the units beyond 600 is decreased by 5 pesewas
times the number of additional products produced. Find the profit maximising output. Note that
orders cannot be less than 600 units.
13. A wholesaler of rice buys her goods from The Rice Master at a cost of GHS20 for the first 200
bags. This price is however decreased by 0.1 pesewa times the number of additional bags ordered
above 200 bags. Orders cannot be less than 200 units. The selling price is a function of the number
of bags of rice ordered and it is given as 𝑝 = 22 − 0.001𝑥 where x is the number of bags of rice
ordered in a month.
a. What number of units be ordered to maximise profit
b. What is the corresponding maximum profit
c. Orders is restricted to a maximum of 4000 bags for one wholesaler, do you think
it is worth ordering the maximum number of bags of rice?
14. Find the integral of the following:
𝑥4 1
a. ∫ 𝑥 4 𝑑𝑥 b. ∫ 𝑑𝑥 c. ∫ √𝑥3 𝑑𝑥
𝑥2
𝑥+5𝑥 2 1
d. ∫ 𝑑𝑥 e. ∫ 5𝑥−2 𝑑𝑥 f. ∫(5𝑥 − 2)10
𝑥2
