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z f ( x, y)
describes a function of two independent variables if, for each permissible ordered pair ( x, y) ,
there is one and only one value of z determined by f ( x, y) . The variables x and y are
independent variables, and the variable z is a dependent variable. The set of all ordered pairs
of permissible values of x and y is the domain of the function, and the set of all corresponding
values f ( x, y) is the range of the function. Unless otherwise stated, we will assume that the
domain of a function specified by an equation of the form z f ( x, y) is the set of all ordered
pairs of real numbers ( x, y) such that f ( x, y) is also a real number.
We can similarly define functions of three independent variables, w
independent variables, u f (w, x, y, z) ; and so on.
f ( x, y, z) ; of four
Example (Revenue Function). Suppose the surfboard company has determined that the demand
equations for its two types of boards are given by
p 210 4 x y,
q 300 x 12 y,
where p is the price of the standard board, q is the price of the competition board, x is the weekly
demand for standard boards, and y is the weekly demand for competition boards. Find the
weekly revenue function R( x, y) , and evaluate R(20,10) .
Solution.
Revenue = (demand for standard boards) X (price of a standard board) +
+ (demand for competition boards) X (price of a competition board).
R( x, y)
xp
yq
R(20,10)
x(210 4 x
y) y(300 x 12 y)
210 x 300 y 4 x 2 2 xy 12 y 2 .
210 20 300 10 4 20 2 2 20 10 12 10 2
$ 4,800 .
xy ;
xyz ;
P(1 rt ) (A = amount, P = principal, r = annual rate, t = time in
nt
r
Compound interest: A( P, r , t , n) P 1
(A = amount, P = principal, r = annual rate, t =
n
time in years, n = number of compound periods per year).
k xm y n ,
where k, m, and n are positive constants with m n 1 . Economists use this function to describe
the number of units f ( x, y) produced from the utilization of x units of labor and y units of
capital (for equipment such as tools, machinery, buildings, and so on). Cobb-Douglas production
functions are also used to describe the productivity of a single industry, of a group of industries
producing the same product, or even of an entire country.
with the utilization of x units of labor and y units of capital. If the company uses 3,000 units of
labor and 1,000 units of capital, how many units of steel will be produced?
Solution. The number of units of steel produced is given by
f (3000,1000) 10 30000.2 10000.8 12, 457 units.
In general, the graph of any function of the form z f ( x, y) is called a surface. The
graph of such a function is the graph of all ordered triplets of numbers ( x, y, z) that satisfy the
equation. A point on the graph, that is neither a local minimum nor a local maximum, is called a
saddle point.
Partial Derivatives
f (x
lim
x
x, y )
x
f ( x, y )
z
, the variable y is held constant.
x
z
y
f ( x, y
lim
y
y)
y
f ( x, y)
z
, the variable x is held constant and the differentiation is carried out with
y
respect to y only.
In calculating
There are several alternative notations that are used for partial derivatives. The most
commonly encountered of these is the use of subscripts to indicate partial derivatives. According
to this notation, we have the following.
z
is denoted by z x or f x ( x, y ).
x
z
is denoted by z y or f y ( x, y ).
y
z
z
and
for z
x
y
x3 5 xy 2
2 y3 .
3x 2 5 y 2 .
z
10 xy 6 y 2 .
y
with the utilization of x units of labor and y units of capital. The partial derivative f x ( x, y)
represents the rate of change of productivity with respect to labor and is called the marginal
productivity of labor. The partial derivative f y ( x, y ) represents the rate of change of
productivity with respect to capital and is called the marginal productivity of capital. If the
company is currently utilizing 4,000 units of labor and 2,500 units of capital, find the marginal
productivity of labor and the marginal productivity of capital. For the greatest increase in
productivity, should the management of the company encourage increased use of labor or
increased use of capital?
Solution. Marginal productivity of labor:
f x ( x, y ) 6 x
f x (4000, 2500)
6 4000
0.6
y 0.6 ,
0.6
25000.6
4.53 .
f y ( x, y) 9 x0.4 y
0.4
0.4
2500
0.4
10.86 .
At the current level of utilization of 4,000 units of labor and 2,500 units of capital, each 1-unit
increase in labor utilization (keeping capital utilization fixed at 2,500 units) will increase
production by approximately 4.53 units, and each 1-unit increase in capital utilization (keeping
labor utilization fixed at 4,000 units) will increase production by approximately 10.86 units. The
management of the company should encourage increased use of capital.
z
may be differentiated with respect to x and y, thus providing two more secondy
order partial derivatives:
2
2
z
z
z
z
and
.
2
y y
x y
x y
y
Similarly,
2
z
z
and
are often called mixed partial derivatives of
x y
y x
second order. Provided that these mixed partial derivatives are continuous functions of x and y,
they are equal to another:
2
2
z
z
.
x y
y x
z
is denoted by z x y or f x y ( x, y ).
y x
,
2
,
2
z
,
x y
z
y x
for
3x 2 2 xy 3 1 .
z
z
and
:
x
y
z
6 x 2 y3 ,
x
z
y
6 xy 2 .
Now we have
2
z
2
z
x y
z
x
z
y
6x 2 y
6,
z
y
6 xy 2
6 y2,
z
y x
6 xy 2
y
z
x
6 x 2 y3
12 xy ,
6 y2 .