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PPT10-Multivariate Calculus

This document provides an outline and examples for topics in multivariate calculus covered in Week 10, including partial derivatives, their applications, Lagrange multipliers, and applications of optimization. Partial derivatives are used to find the marginal cost with respect to each variable for a joint cost function. Lagrange multipliers allow finding critical points subject to a constraint. An example shows minimizing total cost by distributing production between two plants subject to a total output constraint.

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644 views13 pages

PPT10-Multivariate Calculus

This document provides an outline and examples for topics in multivariate calculus covered in Week 10, including partial derivatives, their applications, Lagrange multipliers, and applications of optimization. Partial derivatives are used to find the marginal cost with respect to each variable for a joint cost function. Lagrange multipliers allow finding critical points subject to a constraint. An example shows minimizing total cost by distributing production between two plants subject to a total output constraint.

Uploaded by

Rano Acun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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MATH6102

Business Mathematics

Week 10

Multivariate Calculus
Chapter Outline

 Partial Derivatives
 Application of Partial Derivatives
 Lagrange Multipliers
 Applications
PARTIAL DERIVATIVES
• If we hold all but one of the variables constant and find the
rate of change of the function with respect to the
remaining variable, then this process is called partial
differentiation.
• For a function of two variables z = f(x,y) the partial
derivative of f with respect to x when y held fixed is
denoted by: f or z
x x
• For a function of two variables z = f(x,y) the partial
derivative of f with respect to x when y held fixed is
denoted by: f or z
y y
APPLICATION OF PARTIAL
DERIVATIVES
Example: Marginal Cost

A company manufactures two types of skis, the Lightning and the Alpine
models. Suppose the joint-cost function for producing x pairs of the
Lightning model and y pairs of the Alpine model per week is
c  f  x, y   0.07 x 2  75 x  85 y  6000 c
c
where c is expressed in dollars. Determine the marginal costs and y
x
when x = 100 and y = 50, and interpret the results.
Solution:
c c
MC   0.14 x  75   0.14100  75  $89
x x  100,50 
c
MC   85  c  $85
y y  100,50 
LAGRANGE MULTIPLIERS
• Lagrange multipliers allow us to obtain critical
points.
• The number λ0 is called a Lagrange multiplier.
• Lagrange function:
z  f  x, y     Xp x  Yp y  I 
APPLICATIONS
Example: Minimizing
Cost
• Suppose a firm has an order for 200 units of its product
and wishes to distribute its manufacture between two
of its plants, plant 1 and plant 2. Let q1 and q2 denote
the outputs of plants 1 and 2, respectively, and
suppose the total-cost function is given by
c  f  q1 , q2   2q12  q1q2  q22  200.
• How should the output be distributed in order to
minimize costs?
Solution:
We minimize c = f(q1, q2), given the constraint
q1 + q2 = 200
q1 + q2 – 200 = 0
f  q1 , q2 ,    2q12  q1q2  q22  200    q1  q2  200
 f
 q  4q1  q2    0 1. Elimination λ: 2. Substitution q2
 1 4q1 + q2 – λ =0 q1 + q2 = 200
 f
  q1  2q2    0 q1 + 2q2 – λ =0 - q1 + (3q1 ) =200
 q2
 f  q  q  200  0 3q1 – q2 =0 q1 = 50 and q2 = 150

 
1 2
q2 = 3q1
Thank You

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