Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 54 views

    BS 140 Classwork Twelve 2020 - 2021-1

    Uploaded by

    Yvonne
    1. The document provides 10 examples of mathematical analysis problems involving functions of several variables, unconstrained and constrained optimization, and Lagrange multipliers. 2. The problems cover topics like partial derivatives, elasticities, indifference curves, production functions, and profit maximization. 3. Solutions are not provided, rather the examples give the necessary information and questions to solve each mathematical optimization problem.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    BS 140 Classwork Twelve 2020 - 2021-1

    Uploaded by

    Yvonne
    54 views4 pages
    1. The document provides 10 examples of mathematical analysis problems involving functions of several variables, unconstrained and constrained optimization, and Lagrange multipliers. 2. The problems cover topics like partial derivatives, elasticities, indifference curves, production functions, and profit maximization. 3. Solutions are not provided, rather the examples give the necessary information and questions to solve each mathematical optimization problem.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. The document provides 10 examples of mathematical analysis problems involving functions of several variables, unconstrained and constrained optimization, and Lagrange multipliers. 2. The problems cover topics like partial derivatives, elasticities, indifference curves, production functions, and profit maximization. 3. Solutions are not provided, rather the examples give the necessary information and questions to solve each mathematical optimization problem.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    54 views4 pages

    BS 140 Classwork Twelve 2020 - 2021-1

    Uploaded by

    Yvonne
    1. The document provides 10 examples of mathematical analysis problems involving functions of several variables, unconstrained and constrained optimization, and Lagrange multipliers. 2. The problems cover topics like partial derivatives, elasticities, indifference curves, production functions, and profit maximization. 3. Solutions are not provided, rather the examples give the necessary information and questions to solve each mathematical optimization problem.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    1

    THE COPPERBELT UNIVERSITY

    SCHOOL OF BUSSINESS

    BS/BF/BSP/BEC/HRM/BIS 140 Mathematical Analysis

    FUNCTIONS OF SEVERAL VARIABLES


    Applications
    EXAMPLE ONE
    𝜕𝑧 𝜕𝑧
    (a) If 𝑍 = 𝑥 3 𝑦 − 𝑦 3 𝑥 evaluate and at the point (1,3) Hence
    𝜕𝑥 𝜕𝑦
    estimate the change in 𝑧 when 𝑥 increases from 1 to 1.1 and 𝑦
    decreases from 3 to 2.8 simultaneously
    𝜕𝑧 𝜕𝑧
    (b) If 𝑍 = 𝑥𝑦 − 5𝑥 + 2𝑦 evaluate and at the point (2,6)
    𝜕𝑥 𝜕𝑦
    1. Use the small increments formula to estimate the change in 𝑧
    as 𝑥 decreases from 2 to 1.9 and 𝑦 increases from 6 to 6.1.
    2. Confirm your estimates of part (1) by evaluating 𝑧 at (2,6) and
    (1.9, 6.1).
    𝑑𝑦
    (c) Use implicit differentiation to find the expressions for given that
    𝑑𝑥
    (i) 𝑥𝑦 − 𝑦 3 + 𝑦 = 0
    (ii) 𝑦 5 − 𝑥𝑦 2 = 10

    Tailoka Frank Patson Mathematical Analysis Academic year 2020 - 2021


    2

    EXAMPLE TWO
    Given the demand function
    𝑄 = 100 − 2𝑃 + 𝑃𝐴 + 0.1𝑌
    Where 𝑃 = 10, 𝑃𝐴 = 12 and 𝑌 = 1000, find the
    (a) Price elasticity of demand
    (b) Cross – price elasticity of demand
    (c) Income elasticity of demand
    Is the alternative good substitutable or complementary?

    EXAMPLE THREE
    Given the utility function
    1 1
    𝑈= 𝑥12 𝑥22

    Find a general expression for MRCS in terms of 𝑥1 and 𝑥2 .


    Calculate the particular value of MRCS for the indifference curve which
    passes through (300, 500). Hence estimate the increase in 𝑥2 required to
    maintain the current level of utility when 𝑥1 decreases by 3 units.

    EXAMPLE FOUR
    Given the production function
    𝑄 = 𝐾 2 + 2𝐿2
    Write down expression for the marginal products
    𝜕𝑄 𝜕𝑄
    and
    𝜕𝐾 𝜕𝐿

    Hence show that


    2𝐿
    (a) 𝑀𝑅𝑇𝑆 =
    𝐾
    𝜕𝑄 𝜕𝑄
    (b) 𝐾 +𝐿 = 2𝑄
    𝜕𝐾 𝜕𝐿

    Tailoka Frank Patson Mathematical Analysis Academic year 2020 - 2021


    3

    Unconstrained optimization
    EXAMPLE FIVE
    Find and classify the stationary points of the function
    (a) 𝑓(𝑥, 𝑦) = 𝑥 3 − 3𝑥 + 𝑥𝑦 2 .
    (b) 𝑓(𝑥, 𝑦) = 𝑥 2 + 6𝑦 − 3𝑦 2 + 10

    EXAMPLE SIX
    A firm is a perfectly competitive producer and sells two goods G1 and G2 at
    K1 000 and K800 respectively, each. The total cost of producing these
    goods is given by
    𝑇𝐶 = 2𝑄12 + 2𝑄1 𝑄2 + 𝑄22
    Where 𝑄1 and 𝑄2 denote the output levels of G1 and G2, respectively. Find
    the maximum profit and the values of 𝑄1 and 𝑄2 at which this is achieved.
    Constrained optimization
    EXAMPLE SEVEN
    (a) Find the minimum value of the objective function
    𝑍 = 2𝑥 2 + 𝑦 2
    Subject to the constraint 𝑦 = 2𝑥 − 1 .

    (b) Find the maximum value of the objective function


    𝑍 = 2𝑥 2 − 3𝑥𝑦 + 2𝑦 + 10
    Subject to the constant 𝑦 = 𝑥.
    EXAMPLE EIGHT
    A firm’s unit capital and labour costs are K1 and K2 respectively. If the
    production function is given
    𝑄 = 4𝐿𝐾 + 𝐿2

    Tailoka Frank Patson Mathematical Analysis Academic year 2020 - 2021


    4

    Find the maximum output and the levels of 𝐾 and 𝐿 at which it is achieved
    when the total input costs are fixed at K105. Verify that the ratio of
    marginal product to price is the same for both inputs at the optimum.
    Lagrange Multipliers
    EXAMPLE NINE
    Use Lagrange multipliers to find the optimal value of
    𝑥 2 − 3𝑥𝑦 + 12𝑥
    Subject to the constraint
    2𝑥 + 3𝑦 = 6
    EXAMPLE TEN
    (a) Use Lagrange multipliers to find the optimal value of
    2𝑥 2 − 𝑥𝑦
    Subject to the constraint
    𝑥 + 𝑦 = 12
    (b) A monopolist producer of two goods, G1 and G2, has a joint total
    cost function
    𝑇𝐶 = 10𝑄1 + 𝑄1 𝑄2 + 10𝑄2
    Where 𝑄1 and 𝑄2 denote the quantities of G1 and G2 respectively.
    If 𝑃1 and 𝑃2 denote the corresponding prices then the demand
    equations are
    𝑃1 = 50 − 𝑄1 + 𝑄2
    𝑃2 = 30 + 2𝑄1 − 𝑄2
    Find the maximum profit if the firm is contracted to produce a
    total of 15 goods of either type. Estimate the new optimal profit if
    the production quota rises by one unit.

    Tailoka Frank Patson Mathematical Analysis Academic year 2020 - 2021

    You might also like