Average cost: Let the total cost of producing 𝑥 unit of a certain product is given by 𝐶(𝑥).

Then
the average cost is defined as the ratio of the total cost to the total output and it is denoted by
AC. Which is written as
𝐶(𝑥) Total cost
Average cost, 𝐴𝐶 = [whic is, AC = Total unit]
𝑥

Marginal Cost: If 𝐶(𝑥) is the total cost of producing x units of a product, then the first
𝑑𝐶
derivative of 𝐶 or 𝑑𝑥 or 𝐶′(𝑥) is the point marginal cost. Here, point marginal cost will mean

marginal cost.

Ex-1. The total cost function of a commodity is given by 𝐶(𝑥) = 0.5𝑥 2 + 5𝑥 + 30, where C
denotes the total cost and x denotes the quantity produced. Find the average cost and the
marginal cost.
Solution: The given cost function is 𝐶(𝑥) = 0.5𝑥 2 + 5𝑥 + 30.
𝐶(𝑥)
Then, the average cost, 𝐴𝐶 = 𝑥
0.5𝑥 2 +5𝑥+30
= 𝑥
0.5𝑥 2 5𝑥 30
= + +
𝑥 𝑥 𝑥
30
= 0.5𝑥 + 5 + 𝑥
𝑑
Marginal cost, 𝑀𝐶 = 𝑑𝑥 𝐶(𝑥)
𝑑
= 𝑑𝑥 (0.5𝑥 2 + 5𝑥 + 30)

= 0.5 ∙ 2𝑥 + 5 ∙ 1 + 0
=𝑥+5
Ex-2. If the total cost of producing 𝑥 units of a certain product is defined as 𝐶(𝑥) = 0.2𝑥 2 +
3𝑥 + 40 (Tk.), find the marginal cost at 60 and 61 units.
Soln: Differentiating w.r.t. x the cost function, we get
𝑑
Marginal cost = 𝐶′(𝑥) = 𝑑𝑥 (0.2𝑥 2 + 3𝑥 + 40)

= 0.2 ∙ 2𝑥 + 3 ∙ 1 + 0
= 0.4𝑥 + 3
Marginal cost at 𝑥 = 60 unit
𝐶 ′ (60) = 0.4 ∗ 60 + 3
= 24 + 3
= 27 Tk. per unit.
Marginal cost at 𝑥 = 61 unit
 𝐶 ′ (61) = 0.4 ∗ 61 + 3
= 24.4 + 3
= 27.4 Tk. per unit.
Ex-3. The total cost of producing 𝑥 unit of a product is 𝐶(𝑥) = 0.0005𝑥 3 − 0.0𝑥 2 − 30𝑥 +
5000. Determine the-
a. Average cost, AC b. Slope of AC
c. Marginal cost, MC d. Slope of MC
e. Value of 𝑥 for which MVC = AVC, where VC denotes variable cost.
Solution: Given the cost function is 𝐶(𝑥) = 0.0005𝑥 3 − 0.02𝑥 2 − 30𝑥 + 5000
Then the variable cost (function) is, 𝑉𝐶 = 0.0005𝑥 3 − 0.02𝑥 2 − 30𝑥
𝐶(𝑥)
a. Average cost, AC = 𝑥
0.0005𝑥 3 −0.02𝑥2 −30𝑥+5000
= 𝑥
0.0005𝑥 3 0.02𝑥 2 30𝑥 5000
= − − +
𝑥 𝑥 𝑥 𝑥
5000
= 0.0005𝑥 2 − 0.02𝑥 − 30 + + 𝑥
𝑑 𝑑 5000
b. Slope of AC, 𝑑𝑥 (AC) = 𝑑𝑥 (0.0005𝑥 2 − 0.02𝑥 − 30 + + )
𝑥
𝑑 𝑑 𝑑 𝑑 5000
= 𝑑𝑥 (0.0005𝑥 2 ) − 𝑑𝑥 (0.02𝑥) − 𝑑𝑥 (30) + 𝑑𝑥 ( )
𝑥
5000 𝑑 1 1
= 0.0005 ∙ 2𝑥 − 0.02 ∙ 1 − 0 + (−1) [𝑑𝑥 (𝑥) = − 𝑥 2 ]
𝑥2
5000
= 0.001𝑥 − 0.02 − 𝑥2
𝑑
c. Marginal Cost, MC = 𝑑𝑥 𝐶(𝑥)
𝑑
= 𝑑𝑥 (0.0005𝑥 3 − 0.02𝑥 2 − 30𝑥 + 5000)
𝑑 𝑑 𝑑 𝑑
= 𝑑𝑥 (0.0005𝑥 3 ) − 𝑑𝑥 (0.02𝑥 2 ) − 𝑑𝑥 (30𝑥) + 𝑑𝑥 (5000)

= 0.0005 ∙ 3𝑥 2 − 0.02 ∙ 2𝑥 − 30 ∙ 1 + 0
= 0.0015𝑥 2 − 0.04𝑥 − 30
𝑑 𝑑
d. Slope of MC, 𝑑𝑥 (MC) = 𝑑𝑥 (0.0015𝑥 2 − 0.04𝑥 − 30)
𝑑 𝑑 𝑑
= 0.0015 𝑑𝑥 (𝑥 2 ) − 0.04 𝑑𝑥 (𝑥) − 𝑑𝑥 (30)

= 0.0015 ∙ 2𝑥 − 0.04 ∙ 1 − 0
= 0.003𝑥 − 0.04
VC
e. Average variable cost, AVC = 𝑥
 0.0005𝑥 3 −0.02𝑥2 −30𝑥
= 𝑥
0.0005𝑥 3 0.02𝑥 2 030𝑥
= − −
𝑥 𝑥 𝑥

= 0.0005𝑥 2 − 0.02𝑥 − 30
𝑑
Marginal variable cost, MVC = 𝑑𝑥 (VC)
𝑑
= 𝑑𝑥 (0.0005𝑥 3 − 0.02𝑥 2 − 30𝑥)

= 0.0015𝑥 2 − 0.04𝑥 − 30
Since, according to out question MVC = AVC
Therefore, 0.0015𝑥 2 − 0.04𝑥 − 30 = 0.0005𝑥 2 − 0.02𝑥 − 30
or, 0.0015𝑥 2 − 0.04𝑥 − 30 − 0.0005𝑥 2 + 0.02𝑥 + 3 = 0
or, 0.001𝑥 2 − 0.02𝑥 = 0
or, 𝑥(0.001𝑥 − 0.02) = 0
which gives, either 𝑥 = 0 or 0.001𝑥 − 0.02 = 0
From the equation 0.001𝑥 − 0.02 = 0, we get 𝑥 = 20
Since 𝑥 can not be 0, so the required value of 𝑥 is 20.

Ex-5. The price p per kg. when x kgs. of a certain product are demanded is
10000
p 5 , 0  x  90.
5 x  100
Determine:
(i) The rate of change of price 𝑝 with respect to x.
(ii) The revenue function.
(iii) The marginal revenue.
(iv) The marginal revenue at x  10 and x  20 .
10,000
Solution: The given demand function in terms of price is 𝑝 = 5𝑥+100 − 5

(i) Rrate of change of price with respect to x is

𝑑 𝑑 10,000
(𝑝) = ( − 5)
𝑑𝑥 𝑑𝑥 5𝑥+100
𝑑 𝑑
= 10,000 𝑑𝑥 (5𝑥 + 100)−1 − 𝑑𝑥 (5)
𝑑
= 10,000(−1)(5𝑥 + 100)−2 𝑑𝑥 (5𝑥 + 100) − 0
10,000
= − (5𝑥+100)2 (5 ∙ 1 + 0)
50,000
= − (5𝑥+100)2
 (ii) The revenue function is: 𝑅 = 𝑝𝑥
10,000
= (5𝑥+100 − 5) 𝑥
10,000𝑥
= ( 5𝑥+100 − 5𝑥)

(iii) The marginal revenue (MR) is:

𝑑𝑅 𝑑 10,000𝑥
𝑀𝑅 = 𝑑𝑥 = 𝑑𝑥 (5𝑥+100 − 5𝑥)
𝑑 10,000𝑥
= 𝑑𝑥 (5𝑥+100 − 5𝑥)
𝑑 10,000𝑥 𝑑
= 𝑑𝑥 (5𝑥+100) − 𝑑𝑥 (5𝑥)
𝑑 𝑑
(5𝑥+100) (10,000𝑥)−(10,000𝑥) (5𝑥+100)
𝑑𝑥 𝑑𝑥
= (5𝑥+100)2
−5∙1
(5𝑥+100)(10,000)−(10,000𝑥)(5+0)
= (5𝑥+100)2
−5
10,000(5𝑥+100)−5(10,000𝑥)
= (5𝑥+100)2
−5

(iv) Marginal revenue at 𝑥 = 10 is

10,000(5∙10+100)−5(10,000∙10)
= (5∙10+100)2
− 5
1500,000−500,0000
= −5
(150)2
10,00,000
= −5
22,500

= 44.44 − 5
= 39.44
Marginal revenue at 𝑥 = 20 is
10,000(5∙20+100)−5(10,000∙20)
= (5∙20+100)2
− 5
20,00,000−1000,0000
= −5
(200)2
10,00,000
= −5
40,000

= 25 − 5
= 20

Exercise
50 𝑥2
1. If total cost of manufacturing x toys is defined by 𝐶(𝑥) = 500 + + 10 taka, find the
𝑥

average and marginal cost for cost for 𝑥 = 20.

 500
2. If 𝐶̅ = 0.01𝑞 + 5 + is the manufacturer’s average cost equation, find the marginal
𝑞

cost function. What is the marginal cost when 𝑞 = 100 units are produced? Interpret
the result.
3. If total cost of producing 𝑥 units of a product is 𝐶(𝑥) = 0.02𝑥 2 + 3𝑥 + 400 (Tk.), then
find the marginal cost of at output unit of
(a) 500 units (b) 1000 units
4. If total cost of producing t tons of a product is defined as 𝐶(𝑡) = 0.0004𝑡 3 − 0.4𝑡 2 +
100𝑡 + 40000, compute the marginal cost at outputs of
(a) 100 tons (b) 200 tons (c) 500 tons
5. If total cost of producing 𝑝 pounds of paper is defined as 𝐶(𝑝) = 0.002𝑝3 − 0.2𝑝2 +
20𝑝 + 200, compute the marginal cost at outputs of
(b) 10 tons (b) 20 tons (c) 50 tons
2
6. The total cost of producing 𝑥 unit of a product is 𝐶(𝑥) = 3 𝑥 3 − 500𝑥 2 + 1000𝑥 +

5000. Determine the-

(a) Average cost, AC (b). Slope of AC
(c) Marginal cost, MC (d). Slope of MC
(e) Value of 𝑥 for which MVC = AVC, where VC denotes variable cost.
7. The total cost 𝐶(𝑥) of a firm is given by 𝐶(𝑥) = 0.0005𝑥 3 − 0.7𝑥 2 + 30𝑥 + 3000.
Determine the-
(a) Average cost, AC (b). Slope of AC
(c) Marginal cost, MC (d). Slope of MC
(e) Value of 𝑥 for which MVC = AVC, where VC denotes variable cost.
8. Let 𝑝 be the price per unit of a certain product. When there is a 𝑥 unit, the relation
100
between 𝑝 and 𝑥 is given by 𝑝 = 3𝑞+1 − 4. Then find the-

(a) Marginal revenue function.

(b) The relative rate of change of 𝑅 and the percentage rate of change of 𝑅 at x=10.

Ex-7. If the consumption function is given by 𝐶(𝑌) = 17 + 0.8𝑌 − 0.5√𝑌, where 𝑌 is the total
income. Determine the marginal propensity to consume (MPC), marginal propensity to save
(MPS) and the multiplier when 𝑌 = 16. Also interpret the numerical results for 𝑌 = 16.
Solution: Given the consumption function is 𝐶(𝑌) = 17 + 0.8𝑌 − 0.5√𝑌
Then, marginal propensity to consume is
 𝑑
MPC = 𝑑𝑌 𝐶(𝑌)
𝑑
= 𝑑𝑌 (17 + 0.8𝑌 − 0.5√𝑌)
1 1
1 𝑑 1 1 1
= 0 + 0.8 − 0.5 ∙ 2 (𝑌)−2 [𝑑𝑥 √𝑥 = 2 (𝑥)−2 = 2 ]
√𝑥
1 1
= 0.8 − 4
√𝑌
1 1 1 1
For 𝑌 = 16, required MPC is 0.8 − 4 = 0.8 − 4
√𝑌 √16
1
= 0.8 −
16

= 0.8 − 0.0625
= 0.7375
The marginal propensity to save, MPS = 1 − 𝑀𝑃𝐶 [we know 𝑀𝑃𝐶 + 𝑀𝑃𝑆 = 1]
1 1
= 1 − (0.8 − 4 )
√𝑌
1 1
= 0.2 + 4
√𝑌
1 1 1 1
At 𝑌 = 16, required MPS is 0.2 + 4 = 0.2 + 4
√𝑌 √16
1
= 0.8 − 16

= 0.2 + 0.0625
= 0.2625
Interpretation of the results:
In this situation, MPC = 0.7375 indicates for additional 1Tk. (one Tk.) of income 0.7375 Tk.
will be consumed.
Similarly, MPS = 0.2625 indicates, for additional 1Tk. (one Tk.) of income 0.2625 Tk. will
be saved.

Ex-8. At income level 𝑌, consumption expenditures are 𝐶(𝑌) billion dollars, where
𝐶(𝑌) = 40 + 0.72𝑌.
(a) Find the marginal propensity to consume.
(b) Interpret the result (a)
(c) How much income is generated by an additional dollar of investment?
(d) At income level 300, what proportion of total income is spent?
Soln: Given 𝐶(𝑌) = 40 + 0.72𝑌, then
𝑑
(a) Marginal Propensity to Consume (MPC) = 𝑑𝑥 (𝐶)
𝑑
= 𝑑𝑥 (40 + 0.72𝑌)
 = 0 + 0.72 ∙ 1
= 0.72
(b) The result MPC = 0.72 indicates that for one additional dollar of income 0.72 dollars
is spent for consumption expenditure.
1
(c) Multiplier = 1−𝑀𝑃𝐶
1
= 1−0.72
1
= 0.28

= 3.57
So, 3.57 income is generated by 1 additional dollar of investment.
(d) At income level 𝑌 = 300, total consumption is
𝐶(300) = 40 + 0.72 ∗ 300
= 256
Total Consumption 256
The proportion of consumption is = = 300
Total Income

= 0.8533 or 85.33%
So, 85.33% of the total income is consumed at this income level.

Exercise:
3 √𝑌
1. If the consumption function is given by 𝐶(𝑌) = 9 + 4 𝑌 − where 𝑌 is the total
3

income, determine the marginal propensity to consume (MPC) and marginal propensity
to save (MPS) when 𝑌 = 25.
2. T consumption function gives the relationship between total income (𝑌) and total
consumption (𝐶). What is meant by the marginal propensity to consume (MPC) and
3
marginal propensity to save (MPS)? If 𝐶(𝑌) = 5√𝑌, determine the marginal propensity
to save when 𝑌 = √27.
3. At income level 𝑌, consumption expenditures are 𝐶(𝑌) billion dollars, where
𝐶(𝑌) = 50 + 0.62𝑌.
(a) Find the marginal propensity to consume.
(b) Interpret (a)
(c) How much income is generated by an additional dollar of investment?
(d) At income level 200, what proportion of total income is spent?
 4. At income level 𝑌, consumption expenditures are 𝐶(𝑌) billion dollars, where
𝐶(𝑌) = 25 + 0.85𝑌.
(e) Find the marginal propensity to consume.
(f) Interpret (a)
(g) How much income is generated by an additional dollar of investment?
(h) At income level 600, what proportion of total income is spent?

Increasing and Decreasing and Stationary points:

Definition: A function 𝑓(𝑥) is increasing at a point or within an interval if 𝑓′(𝑥) > 0.
Definition: A function 𝑓(𝑥) is decreasing at a point or within an interval if 𝑓′(𝑥) < 0.
Definition: A stationary point or critical point is a point on the curve of the function 𝑓(𝑥)
where 𝑓 ′ (𝑥) = 0.
Ex-4. Find the stationary point(s) of the function 𝑓(𝑥) = 2𝑥 3 + 9𝑥 2 + 12𝑥 + 20 is increasing
or decreasing.
Soln: Differentiating the given function w.r.t 𝑥, we get
𝑓′(𝑥) = 2 ∙ 3𝑥 2 + 9 ∙ 2𝑥 + 12 ∙ 1 + 0
= 6𝑥 2 + 18𝑥 + 12
At the stationary/critical point 𝑓 ′ (𝑥) = 0
So, 6𝑥 2 + 18𝑥 + 12 = 0
or, 6(𝑥 2 + 3𝑥 + 2) = 0
or, 𝑥 2 + 3𝑥 + 2 = 0
or, (𝑥 + 2)(𝑥 + 1) = 0
Then, either 𝑥 = −2 or 𝑥 = −1
At 𝑥 = −2, 𝑓(−2) = 2(−2)3 + 9(−2)2 + 12(−2) + 20
= 2(−8) + 9(4) − 24 + 20
= −16 + 36 − 24 + 20
= 56 − 40
= 16
At 𝑥 = −1, 𝑓(−1) = 2(−1)3 + 9(−1)2 + 12(−1) + 20
= 2(−1) + 9(1) − 12 + 20
= −2 + 9 − 12 + 20
= 15
Then the stationary points are at (−2, 16) and (−1, 15).
These obtained stationary points 𝑥 = −1 and − 2 divide the total real line into three intervals,
they are −∞ < 𝑥 < −2, −2 < 𝑥 < −1, and −1 < 𝑥 < ∞
Now, within the interval −∞ < 𝑥 < −2 let 𝑥 = −3, then
𝑓′(−3) = 6(−3)2 + 18(−3) + 12
= 54 − 54 + 12
= 12 > 0
So, the given function is increasing within the interval −∞ < 𝑥 < −2.
Next, within the interval −2 < 𝑥 < −1 let 𝑥 = −1.5, then
𝑓′(−3) = 6(−1.5)2 + 18(−1.5) + 12
= 6 ∙ (2.25) − 27 + 12
= 13.5 − 27 + 12
= −1.5 < 0
So, the function is decreasing within the interval −2 < 𝑥 < −1.
Finally, within the interval −1 < 𝑥 < ∞ let 𝑥 = 0, then
𝑓′(−3) = 6(0) + 18(0) + 12
= 12 > 0
So, the function is increasing within the interval −1 < 𝑥 < ∞.

Concave up, concave down and Point of Inflexion:

Let the function 𝑓(𝑥) be continuous and differentiable within an interval 𝑎 ≤ 𝑥 ≤ 𝑏, for any
value of 𝑥 within that interval-
1. If 𝑓 ′′ (𝑥) > 0, then the function is concave up within that interval.
2. If 𝑓 ′′ (𝑥) < 0, then the function is concave down within that interval.
3. If 𝑓 ′′ (𝑥) = 0 for a specific value of 𝑥, then there is a point of inflexion at that point.
Note: Concave up and concave down is separated by the point of inflexion(s).

Ex-6. Let a function 𝑓(𝑥) = 𝑥 3 − 6𝑥 2 + 37, find its point of inflexion(s). Then the intervals
for which the curve of the function is concave up or concave down.
Soln: The given function is 𝑓(𝑥) = 𝑥 3 − 6𝑥 2 + 30
Then we get 𝑓′(𝑥) = 3𝑥 2 − 6 ∙ 2𝑥 + 0
= 3𝑥 2 − 12𝑥
𝑑
The second derivative, 𝑓′′(𝑥) = 𝑑𝑥 (3𝑥 2 − 12𝑥)
 = 6𝑥 − 12
At the stationary point 𝑓 ′′ (𝑥) = 0
Then 6𝑥 − 12 = 0
or, 6𝑥 = 12
or, 𝑥 = 2
So, there is a point of inflexion at , 𝑥 = 2
This point of inflexion divide the total interval (the real line) into two subintervals, they are
(−∞, 2) and (2, ∞) [ these intervals alternatively expressed as −∞ < 𝑥 < 2 and 2 < 𝑥 < ∞].
Within the interval (−∞, 2), let a value be 𝑥 = 0
Then, 𝑓 ′′ (0) = 6 ∙ 0 − 12
= −12 < 0 (which is negative)
So, the function is concave down within the interval (−∞, 2)
Within the interval (2, ∞), let a value be 𝑥 = 5
Then, 𝑓 ′′ (0) = 6 ∙ 5 − 12
= 18 > 0 (which is positive)
So, the function is concave up within the interval (−∞, 2)

Graph of 𝑓(𝑥) = 𝑥 3 − 6𝑥 2 + 37
35
30
25
20
f(x)

15
10
5
0
-5 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6
value of X

Second Derivative Test for Local Maxima and Minima

At a stationary point 𝑥 = 𝑎 where 𝑓 ′ (𝑎) = 0
1. If 𝑓 ′′ (𝑎) < 0, then the stationary point is a local maximum.
2. If 𝑓 ′′ (𝑎) > 0, then the stationary point is a local minimum.
3. If 𝑓 ′′ (𝑎) = 0, then the test fails and we need method of first derivative or other test.

Ex-7. Find the local maximum and minimum value of the function 𝑦 = 𝑥 3 + 3𝑥 2 − 9𝑥 − 3
and also find its point of inflexion.
Solution: The given function is 𝑦 = 𝑥 3 + 3𝑥 2 − 9𝑥 − 3
Differentiating the function w.r.t. 𝑥 we get
𝑑𝑦 𝑑
= 𝑑𝑥 (𝑥 3 + 3𝑥 2 − 9𝑥 − 3)
𝑑𝑥

= 3𝑥 2 + 3 ∙ 2𝑥 − 9 ∙ 1 − 0
= 3𝑥 2 + 6𝑥 − 9
𝑑𝑦
At the stationary point, 𝑑𝑥 = 0

Then we have 3𝑥 2 + 6𝑥 − 9 = 0
or, 3(𝑥 2 + 2𝑥 − 3) = 0
or, 3(𝑥 2 + 2𝑥 − 3) = 0
or, 𝑥 2 + 2𝑥 − 3 = 0
or, (𝑥 + 3)(𝑥 − 1) = 0
Then we get, either 𝑥 = −3 or 𝑥 = 1
Hence, the stationary (optimum) points are at 𝑥 = −3 and 𝑥 = 1
𝑑2 𝑦 𝑑
The 2nd derivative of y is: = 𝑑𝑥 (3𝑥 2 + 6𝑥 − 9)
𝑑𝑥

= 6𝑥 + 6
𝑑2 𝑦
At the stationary point 𝑥 = −3, = 6(−3) + 6
𝑑𝑥

= −18 + 6
= −12 < 0 (which is negative)
So, the stationary point at 𝑥 = −3 is maximum.
And the maximum value is 𝑦 = (−3)3 + 3(−3)2 − 9(−3) − 3
= −27 + 27 + 27 − 3
= 24
𝑑2 𝑦
At the stationary point 𝑥 = 1, 𝑑𝑥
= 6(1) + 6

= 12 > 0 (which is positive)

So, the stationary point at 𝑥 = 1 is minimum.
And the minimum value is: 𝑦 = (1)3 + 3(1)2 − 9(1) − 3
=1+3−9−3
= −8
(Graph of 𝑦 = 𝑥 3 + 3𝑥 2 − 9𝑥 − 3)
25
20
15
y-values

10
5
0
-5 -4.5 -4 -3.5 -3 -2.5 -2 -1.5 -1 -0.5 0 0.5 1 1.5 2 2.5 3
-5
-10
x-values
Ex-8. The profit realized when 𝑥 litters of water are made and sold is 𝑝(𝑥) = 40𝑥 − 0.01𝑥 2 .
a. Find the number of litters that should be made to maximize profit.
b. Compute the maximum profit.
Solution: Given is 𝑝(𝑥) = 40𝑥 − 0.01𝑥 2
a. Differentiating the profit function w.r.t. 𝑥, we get
𝑝′(𝑥) = 40 ∙ 1 − 0.01 ∙ 2𝑥
= 40 − 0.02𝑥
At the stationary point 𝑝′(𝑥) = 0
Then, 40 − 0.02𝑥 = 0
or, 0.02𝑥 = 40
or, 2𝑥 = 4000
or, 𝑥 = 2000 litters
So, the profit function has a stationary (optimum) point at 𝑥 = 2000.
𝑑
Again, 𝑝′′(𝑥) = 𝑑𝑥 (𝑝′ (𝑥))
𝑑
= 𝑑𝑥 (40 − 0.02𝑥)

= 0 − 0.02 ∙ 1
= −0.02 < 0 (which is negative)
So, the stationary point is of maximum at 𝑥 = 2000.
b. The maximum profit is 𝑝(2000) = 40 ∙ 2000 − 0.01 ∙ (2000)2
= 80,000 − 40,000
= 40,000
Ex-9. A metal box with a square top and bottom of equal size is to have a volume of 2000
cubic cm. The material for the top and bottom of the box is to cost Tk.3 per square cm. and
the material for the sides is to cost Tk.1.50 per square cm. If the cost of the material is to be
the least, find the dimension of the box.
Solution: For the metal box, let length and width be 𝑥 cm and height be 𝑦 cm.
Then volume of the box is 𝑉 = 𝑥 ∙ 𝑥 ∙ 𝑦 cm3
= 𝑥2𝑦 cm3
Since, the volume of the box is 2000 cm3
So, we have 𝑥 2 𝑦 = 2000
2000
𝑦= …. ….. ….. ….. (1)
𝑥2

According to the question area of top and bottom of the box are equal (which are
𝑥 ∙ 𝑥 = 𝑥 2 cm2 and area of other 4 sides are equal (which are ∙ 𝑦 cm2 ).
Then the total surface area of the box is:
𝑆 = 2𝑥 2 + 4𝑥𝑦 cm2
Given material cost for top and bottom is Tk.3 per cm2 and cost for all sides are Tk.1.5 per
cm2 .
Then the cost function for the box is:
𝐶 = (top + bottom area) ∙ 3 + (total side area) ∙ 1.5
𝐶 = 2𝑥 2 (3) + 4𝑥𝑦(1.5)
= 6𝑥 2 + 6𝑥𝑦
2000 2000
= 6𝑥 2 + 6𝑥 ∙ [from equn (1) 𝑦 = ]
𝑥2 𝑥2
12000
𝐶(𝑥) = 6𝑥 2 + 𝑥

Differentiating w.r.t. 𝑥 we get

𝑑 12000
𝐶′(𝑥) = 𝑑𝑥 (6𝑥 2 + )
𝑥
12000
𝐶 ′ (𝑥) = 12𝑥 − 𝑥2

At the stationary (optimum) point 𝐶 ′ (𝑥) = 0

12000
Then we have, 12𝑥 − =0
𝑥2
12000
or, 12𝑥 = 𝑥2

or, 𝑥 3 = 1000
which implies 𝑥 = 10 cm
Differentiating the cost function for second time, we get
𝑑 12000
𝐶 ′ ′(𝑥) = 𝑑𝑥 (12𝑥 − )
𝑥2

= 12 ∙ 1 − 12000 ∙ (−2)𝑥 −3
24000
= 12 + 𝑥3
24000
For 𝑥 = 10, 𝐶 ′′ (10) = 12 + >0 (which is positive)
103
Hence, the cost is minimum at 𝑥 = 10 cm.
Putting the value of x=10 in equation (1) we get
2000
𝑦= 102

= 20 cm
Hence, the dimensions of the box are length = width = 10 cm and height is 20 cm.

Ex-10. A rectangular firm is to be designed for a floor area 16,875 square feet on a straight
road side. The front of the firm must be set back 60 feet from the road, and the on other two
sides must have to keep 30 feet for grass and trees, and 20 feet at the back of the firm must be
provided. Designer seek to minimize the total area (firm area plus other sides area). Determine
the dimension of the firm that will minimize the total cost.

Solution: Let, the length of the firm be 𝑥 feet and width be 𝑦 feet.
Since, the area of the plant is 16,875 square feet
So, we have 𝑥𝑦 = 16,875
16,875
Or, 𝑦 = …. ….. ….. (1)
𝑥

Total area of the firm is

𝐴 = (𝑥 + 30 + 30)(𝑦 + 20 + 60)
𝐴 = (𝑥 + 60)(𝑦 + 80)
Putting the value of 𝑦 from equation (1), we get
16,875
𝐴(𝑥) = (𝑥 + 60)( + 80)
𝑥
16,875
= 16,875 + 80𝑥 + 60 ∙ + 60 ∙ 80
𝑥
60∙16,875
= 16,875 + 80𝑥 + + 4800
𝑥
60∙16,875
= 21,675 + 80𝑥 + 𝑥

Differentiating w.r.t. x, we get

𝑑 60∙16,875
𝐴′(𝑥) = 𝑑𝑥 (21,675 + 80𝑥 + )
𝑥
60∙16,875
= 0 + 80 − 𝑥2
60∙16,875
= 80 − 𝑥2

At the stationary (optimum) point 𝐴′(𝑥) = 0

60∙16,875
Then we have, 80 − =0
𝑥2
 60∙16,875
or, 80 = 𝑥2
60∙16,875
or, 𝑥2 = 80

or, 𝑥 2 = 12,656.25
or, 𝑥 = 112.5 feet
Putting the value of 𝑥 = 112.5 in equation (1), we get
16,875
𝑦= 112.5

= 150 feet
The second derivative of 𝐴(𝑥) is
𝑑
𝐴′′ (𝑥) = 𝑑𝑥 (𝐴′(𝑥))
𝑑 60∙16,875
= 𝑑𝑥 (80 − )
𝑥2
60∙16,875
= 0 − (−2) 𝑥3
2∙60∙16,875
= 𝑥3
2∙60∙16,875
For 𝑥 = 112.5 , 𝐴′′ (112.5) = >0 (which is positive)
(112.5)3

So, the area 𝐴(𝑥) is minimum at the point 𝑥 = 112.5

Hence, the required dimensions of the firm is: length = 112.5 cm and width = 150 cm

Exercise
1. Find the interval in which𝑓(𝑥) = 𝑥 3 − 6𝑥 2 + 37 is increasing or decreasing.
2. Find the relative Maximum and Minimum values of the following functions:
(a) 𝑓(𝑥) = 2𝑥 3 − 21𝑥 2 + 36𝑥 − 20
(i) 𝑓(𝑥) = 𝑥 3 − 3𝑥 2 + 45𝑥 + 13
Also find their point of inflexion.
3. When 𝑥 litters of antifreeze are produced, the average cost per gallon 𝐴(𝑥) is defined
100
as 𝐴(𝑥) = + 0.04𝑥 + 1.
𝑥

(a) How many litters should be produced if average cost per litter is to be minimized?
(b) Compute the minimum average cost per litter.
4. A metal box with a square top and bottom of equal size is to have a volume of 2,592
cubic cm. The material for the top and bottom of the box is to cost Tk.9 per square cm.
and the material for the sides is to cost Tk.1.5 per square cm. If the cost of the material
is to be the least, find the dimension of the box.