BBMP 1103

Mathematic Management
Exam Preparation Workshop Sept 2011
Part 3 - Application of Differentiation
Presented By: Dr Richard Ng
26 Nov 2011
2ptg 4ptg

3. Focus on Application of Differentiation

Question: 7 (January 2010)

Suggested Answers:
C 0.08q 2 96q 800
i) Average Cost = C
q
q
800
0.08q 96
q
ii)

C 0.08q 96 800q 1

dC
0.08 800q 2 0
dq
0.08

800
q2

Prepared by Dr Richard Ng (2011)

Page 3

800
q
0.08
q 2 10000
2

q 100
d 2C
dq 2

1600q 3

1600
q3

When q = 100,
d 2C
dq

=> minimum

Hence, q = 100 minimizes the average cost

Prepared by Dr Richard Ng (2011)

Page 4

iii) When q = 100,

800
C 0.08q 96
q
800
C 0.08(100) 96
(100)
8 96 8

112
Hence, the minimum value of average cost = RM112

Prepared by Dr Richard Ng (2011)

Page 5

Question: 8 (September 2008)

Prepared by Dr Richard Ng (2011)

Page 6

Suggested Answers:
a) Revenue R = p x q
= (48 3q)(q)
= 48q 3q2
b)

R 48q 3q 2
dR
48 6q 0
dq
48 6q
q 8

Prepared by Dr Richard Ng (2011)

Page 7

dR
48 6q
dq
d 2R
dq 2

6 0

=> maximum

Hence, q = 8 maximizes the revenue

c) When q = 8,
R = 48(8) 3(8)2
R = 384 192 = 192
Hence, the maximum value of revenue = RM192
Prepared by Dr Richard Ng (2011)

Page 8

Question: 9 (January 2011)

a)

R pq

R (60 4q)q
60q 4q 2

b)

120

C Cxq
4 (q )
q

120 4q

c)

P R C

P 60q 4q 2 120 4q
4q 2 56q 120

d)

P 4q 2 56q 120
dP
8q 56 0
dq
q7

d 2P
dq

Since

d 2P
dq

When q = 7,

8 0Hence the profit is maximum

p 60 4(7) 32

Hence, the price that maximizes the profit is RM32

Any Question?

End of
Part 3