How to use this page
This is a practice version of MATH 116 – Test 3 (Fall 2024) with very detailed, step-by-step solutions.
For each problem:
- Read the problem and try it on your own.
- Open Hint 1 to ask the key strategic question.
- Open Hint 2 to answer that question and start the setup.
- Open the Solution only when you’re ready to check your work.
Formula Sheet
Interest & Exponential Growth/Decay
Compound interest (m times per year)
\[ A = P\!\left(1+\frac{r}{m}\right)^{mt} \]Continuous compounding
\[ A = Pe^{rt} \]Effective rate from nominal (m compounds per year)
\[ E = \left(1+\frac{r}{m}\right)^{m}-1 \]Effective rate for continuous compounding
\[ E = e^{r}-1 \]
Basic Derivative Rules
Let \(f,g\) be differentiable functions and \(k\) a constant.
Constant multiple:
\[ \frac{d}{dx}\bigl(k\,f(x)\bigr) = k\,f'(x) \]Sum:
\[ \frac{d}{dx}\bigl(f(x)+g(x)\bigr) = f'(x)+g'(x) \]Power:
\[ \frac{d}{dx}\bigl(x^{n}\bigr) = nx^{n-1} \]Exponential:
\[ \frac{d}{dx}\bigl(e^{x}\bigr) = e^{x}, \quad \frac{d}{dx}\bigl(e^{f(x)}\bigr) = e^{f(x)}\,f'(x) \]Natural log:
\[ \frac{d}{dx}\bigl(\ln x\bigr) = \frac{1}{x},\quad x>0 \]\[ \frac{d}{dx}\bigl(\ln(f(x))\bigr) = \frac{f'(x)}{f(x)} \]Product rule (for \(h(x)=f(x)\,g(x)\)):
\[ h'(x) = f'(x)\,g(x) + f(x)\,g'(x) \]Quotient rule (for \(h(x)=\dfrac{f(x)}{g(x)}\)):
\[ h'(x) = \frac{f'(x)\,g(x) - f(x)\,g'(x)}{\bigl(g(x)\bigr)^{2}} \]
Basic Antiderivative / Integral Rules
Power rule:
\[ \int x^{n}\,dx = \frac{x^{n+1}}{n+1} + C \quad (n\neq -1) \]Logarithm:
\[ \int \frac{1}{x}\,dx = \ln|x| + C \]Exponential:
\[ \int e^{kx}\,dx = \frac{1}{k}e^{kx} + C \]Linear rules:
\[ \int \bigl(k\,f(x)\bigr)\,dx = k\int f(x)\,dx \]\[ \int \bigl(f(x)+g(x)\bigr)\,dx = \int f(x)\,dx + \int g(x)\,dx \]Fundamental Theorem of Calculus (FTC):
\[ \int_a^b f(x)\,dx = F(b)-F(a). \]
If \(F'(x)=f(x)\), then
Problems 1–13 (Multiple Choice)
Problem 1
Find the derivative of
\[ f(x) = \ln(5x+7). \]Options
A. \(\displaystyle f'(x) = \frac{5}{5x+7}\)
B. \(\displaystyle f'(x) = \frac{5}{x}\)
C. \(\displaystyle f'(x) = \ln(5x+7)\)
D. \(\displaystyle f'(x) = \frac{1}{5x+7}\)
E. \(\displaystyle f'(x) = \ln(5)\)
Hint 1: Start here
When differentiating \(\ln(5x+7)\), what role does the inside function play compared with differentiating \(\ln x\)?
Hint 2: Idea and first steps
Use
\[ \frac{d}{dx}\bigl(\ln(f(x))\bigr) = \frac{f'(x)}{f(x)}. \]Here \(f(x)\) (inside the log) is \(5x+7\).
Compute its derivative and plug into the formula.
Solution
We want
\[ \frac{d}{dx}\bigl(\ln(5x+7)\bigr). \]Let the inside function be
\[ u(x) = 5x+7. \]Then
\[ \frac{d}{dx}\bigl(\ln(u(x))\bigr) = \frac{u'(x)}{u(x)}. \]Compute \(u'(x)\):
\[ u'(x) = \frac{d}{dx}(5x+7) = 5. \]So
\[ \begin{aligned} f'(x) &= \frac{u'(x)}{u(x)} \\ &= \frac{5}{5x+7}. \end{aligned} \]\[ \boxed{f'(x) = \frac{5}{5x+7}.} \]Answer: A
Problem 2
Solve for \(x\):
\[ e^{-2x} = (e^{4})^{5-3x}. \]Then decide where the solution lies.
Options
A. \(x < 0\)
B. \(0 < x < 1.5\)
C. \(1.5 < x < 3\)
D. \(3 < x < 4.5\)
E. \(x > 4.5\)
Hint 1: Start here
How can you rewrite both sides so they have the same exponential base, and what equation does that let you solve?
Hint 2: Idea and first steps
Use the fact that
\[ (a^{b})^{c} = a^{bc}. \]So
\[ (e^{4})^{5-3x} = e^{4(5-3x)}. \]Then set exponents equal and solve the resulting linear equation in \(x\).
Solution
Start with
\[ e^{-2x} = (e^{4})^{5-3x}. \]Rewrite the right side using \((a^{b})^{c} = a^{bc}\):
\[ (e^{4})^{5-3x} = e^{4(5-3x)} = e^{20-12x}. \]Now we have
\[ e^{-2x} = e^{20-12x}. \]Because the exponential function \(e^{(\cdot)}\) is one-to-one,
\[ -2x = 20 - 12x. \]Solve for \(x\):
\[ \begin{aligned} -2x &= 20 - 12x \\ -2x + 12x &= 20 \\ 10x &= 20 \\ x &= 2. \end{aligned} \]Compare with the intervals:
- \(2\) is between \(1.5\) and \(3\).
So the solution lies in
\[ \boxed{1.5 < x < 3.} \]Answer: C
Problem 3
The approximate rate of change in the number (in billions) of monthly text messages is given by
\[ f'(t) = 5.6t - 7.5, \]where \(t\) is the number of years since 2000.
In the year 2000 (\(t=0\)), there were approximately 20 billion monthly text messages.
How many monthly text messages were there in 2006?
Options
A. more than 80 billion
B. between 70 billion and 80 billion
C. between 60 billion and 70 billion
D. between 50 billion and 60 billion
E. less than 50 billion
Hint 1: Start here
If you know a rate function \(f'(t)\) and an initial value \(f(0)\), how do you recover the original quantity in a later year?
Hint 2: Idea and first steps
- Compute \[ f(t) = \int (5.6t - 7.5)\,dt + C. \]
- Plug in \(t=0\) and \(f(0)=20\) to find \(C\).
- Evaluate \(f(6)\) for the year 2006 (since 2006 is 6 years after 2000).
Solution
We know:
- \(f'(t) = 5.6t - 7.5\),
- \(f(0) = 20\).
Step 1: Integrate \(f'(t)\)
\[ \begin{aligned} f(t) &= \int (5.6t - 7.5)\,dt \\ &= \int 5.6t\,dt - \int 7.5\,dt \\ &= 5.6\cdot\frac{t^{2}}{2} - 7.5t + C \\ &= 2.8t^{2} - 7.5t + C. \end{aligned} \]Step 2: Use initial condition \(f(0)=20\)
\[ \begin{aligned} f(0) &= 2.8(0)^{2} - 7.5(0) + C = C, \\ C &= 20. \end{aligned} \]So
\[ f(t) = 2.8t^{2} - 7.5t + 20. \]Step 3: Evaluate at \(t=6\) (year 2006)
\[ \begin{aligned} f(6) &= 2.8(6)^{2} - 7.5(6) + 20 \\ &= 2.8\cdot36 - 45 + 20 \\ &= 100.8 - 45 + 20 \\ &= 100.8 - 25 \\ &= 75.8. \end{aligned} \]So there were approximately 75.8 billion monthly text messages in 2006.
This lies between 70 and 80 billion.
\[ \boxed{\text{Between 70 and 80 billion.}} \]Answer: B
Problem 4
Find the equation of the tangent line to
\[ f(x) = e^{-7x} + 4 \]at \(x=0\).
Options
A. \(y = -7x + 11\)
B. \(y = 7e^{-x} + 5\)
C. \(y = 7x + 5\)
D. \(y = -7x + 5\)
E. \(y = 7x + 11\)
Hint 1: Start here
What two ingredients do you always need for a tangent-line equation at \(x=0\)?
Hint 2: Idea and first steps
for a point a=0 1. Evaluate \(f(a)\), to get point 2. Then compute \(f'(a)\) to 3. Use \(y - f(a) = f'(a)(x-a)\).Solution
We have
\[ f(x) = e^{-7x} + 4. \]Step 1: Find the point on the curve at \(x=0\)
\[ \begin{aligned} f(0) &= e^{-7\cdot 0} + 4 = e^{0} + 4 = 1 + 4 = 5. \end{aligned} \]So the point is \((0,5)\).
Step 2: Find the derivative
Differentiate term by term:
- For \(e^{-7x}\), use chain rule:
\[ \frac{d}{dx}\bigl(e^{-7x}\bigr) = e^{-7x}\cdot(-7) = -7e^{-7x}. \] - For \(4\), derivative is \(0\).
So
\[ f'(x) = -7e^{-7x}. \]Step 3: Evaluate slope at \(x=0\)
\[ \begin{aligned} f'(0) &= -7e^{-7\cdot 0} = -7e^{0} = -7. \end{aligned} \]Step 4: Use point-slope form
\[ \begin{aligned} y - y_0 &= m(x - x_0) \\ y - 5 &= -7(x - 0) \\ y &= -7x + 5. \end{aligned} \]So the correct tangent line is
\[ \boxed{y = -7x + 5.} \]Problem 5
Determine the nominal annual rate \(r\) for an investment, compounded continuously, if the effective rate is \(10.6\%\).
For continuous compounding:
\[ E = e^{r} - 1. \]Options
A. Less than 9.90%
B. Between 9.90% and 10.20%
C. Between 10.20% and 10.50%
D. Between 10.50% and 10.80%
E. More than 10.80%
Hint 1: Start here
If the effective rate \(E\) is given for continuous compounding, which equation connects \(E\) and the nominal rate \(r\)?
Hint 2: Idea and first steps
Plug \(E=0.106\) into
\[ 0.106 = e^{r}-1, \]solve for \(r\), then convert to a percentage and see which interval fits.
Solution
We are given an effective rate of \(E = 10.6\% = 0.106\). For continuous compounding,
\[ E = e^{r} - 1. \]So
\[ \begin{aligned} 0.106 &= e^{r} - 1 \\ 1.106 &= e^{r} \\ r &= \ln(1.106). \end{aligned} \]Approximate:
- \(\ln(1.1) \approx 0.0953\),
- \(\ln(1.106)\) is slightly larger, about \(0.1008\).
So
\[ r \approx 0.1008 \approx 10.08\%. \]This lies between 9.90% and 10.20%.
\[ \boxed{\text{Between 9.90% and 10.20%.}} \]Answer: B
Problem 6
Suppose
\[ f'(x) = 10x + 2. \]Which one of the following could be \(f(x)\)?
Options
A. \(f(x) = 10x + 2 + C\)
B. \(f(x) = 5x^{2} + 2x + C\)
C. \(f(x) = \dfrac{10x+2}{x}\)
D. \(f(x) = 5x^{2} + x^{2} + C\)
E. \(f(x) = 10\)
Hint 1: Start here
If \(f'(x)=10x+2\), what family of functions could produce that derivative?
Hint 2: Idea and first steps
Use the power rule for integrals:
\[ \int x^{n}\,dx = \frac{x^{n+1}}{n+1} + C. \]Apply it to \(10x\) and to the constant \(2\) separately.
Solution
We want a function \(f(x)\) whose derivative is
\[ f'(x) = 10x+2. \]Compute the antiderivative:
\[ \begin{aligned} f(x) &= \int (10x+2)\,dx \\ &= \int 10x\,dx + \int 2\,dx \\ &= 10\cdot\frac{x^{2}}{2} + 2x + C \\ &= 5x^{2} + 2x + C. \end{aligned} \]Compare with the options:
- Option B is exactly \(f(x) = 5x^{2} + 2x + C\).
So
\[ \boxed{f(x) = 5x^{2} + 2x + C.} \]Answer: B
Problem 7
Evaluate the indefinite integral:
\[ \int \left( e^{4x} + \frac{1}{x^{3}} \right)\,dx. \]Hint 1: Start here
Which integration rule matches each term in this integrand: \(e^{4x}\) and \(x^{-3}\)?
Hint 2: Idea and first steps
Recall:
\[ \int e^{kx}\,dx = \frac{1}{k}e^{kx} + C, \]and for the power rule with \(n\neq -1\),
\[ \int x^{n}\,dx = \frac{x^{n+1}}{n+1} + C. \]Apply with \(n=-3\).
Solution
We have
\[ \int \left( e^{4x} + \frac{1}{x^{3}} \right)\,dx = \int e^{4x}\,dx + \int x^{-3}\,dx. \]First integral:
\[ \int e^{4x}\,dx = \frac{1}{4}e^{4x} + C_1. \]Second integral:
\[ \int x^{-3}\,dx = \frac{x^{-2}}{-2} + C_2 = -\frac{1}{2x^{2}} + C_2. \]Combine them (one constant is fine):
\[ \int \left( e^{4x} + \frac{1}{x^{3}} \right)\,dx = \frac{1}{4}e^{4x} - \frac{1}{2x^{2}} + C. \]\[ \boxed{\int \left( e^{4x} + \frac{1}{x^{3}} \right)\,dx = \frac{1}{4}e^{4x} - \frac{1}{2x^{2}} + C.} \]Problem 8
Determine the derivative of
\[ f(x) = \frac{x}{3 + \ln(x)}. \]Hint 1: Start here
Since \(f(x)=\dfrac{x}{3+\ln x}\), what derivative rule is the best starting point?
Hint 2: Idea and first steps
Let
\[ f(x) = \frac{N(x)}{D(x)}, \quad N(x)=x,\quad D(x)=3+\ln x. \]Then
\[ f'(x) = \frac{N'(x)D(x) - N(x)D'(x)}{[D(x)]^{2}}. \]Compute \(N'(x)\) and \(D'(x)\) first.
Solution
Write
\[ f(x) = \frac{x}{3+\ln x}. \]Let
\[ N(x) = x,\quad D(x) = 3+\ln x. \]Compute derivatives:
\[ N'(x) = 1,\quad D'(x) = \frac{d}{dx}(3+\ln x) = \frac{1}{x}. \]By the quotient rule,
\[ \begin{aligned} f'(x) &= \frac{N'(x)D(x) - N(x)D'(x)}{[D(x)]^{2}} \\ &= \frac{1\cdot(3+\ln x) - x\cdot\frac{1}{x}}{(3+\ln x)^{2}} \\ &= \frac{3+\ln x - 1}{(3+\ln x)^{2}} \\ &= \frac{2+\ln x}{(3+\ln x)^{2}}. \end{aligned} \]\[ \boxed{f'(x) = \dfrac{2+\ln x}{(3+\ln x)^{2}}.} \]Problem 9
Using the Fundamental Theorem of Calculus, determine an expression equivalent to
\[ \int_{a}^{b} 5x^{4}\,dx. \]Hint 1: Start here
To apply the Fundamental Theorem of Calculus here, what antiderivative do you need first?
Hint 2: Idea and first steps
Use the power rule:
\[ \int x^{n}\,dx = \frac{x^{n+1}}{n+1} + C. \]Here \(5x^{4} = 5\cdot x^{4}\). Integrate, then plug in \(b\) and \(a\).
Solution
Find an antiderivative of \(5x^{4}\):
\[ \begin{aligned} \int 5x^{4}\,dx &= 5\int x^{4}\,dx \\ &= 5\cdot\frac{x^{5}}{5} + C \\ &= x^{5}+C. \end{aligned} \]So we can take \(F(x)=x^{5}\).
By the Fundamental Theorem of Calculus,
\[ \int_{a}^{b} 5x^{4}\,dx = F(b)-F(a) = b^{5} - a^{5}. \]\[ \boxed{\int_{a}^{b} 5x^{4}\,dx = b^{5}-a^{5}.} \]Problem 10
Determine the balance in an account if $20,000 is invested for 8 years at an annual interest rate of \(2.4\%\), compounded quarterly.
A. $23,800
B. $24,200
C. $25,000
D. $26,400
E. $28,000
Hint 1: Start here
Which quantities in the compound-interest formula represent principal, annual rate, compounding frequency, and time in this situation?
Hint 2: Idea and first steps
Compute
\[ A = 20000\left(1+\frac{0.024}{4}\right)^{4\cdot 8} = 20000(1.006)^{32}, \]then approximate \((1.006)^{32}\) and choose the closest option.
Problem 10
Use
\[ A = P\left(1+\frac{r}{m}\right)^{mt}, \]with \(P=20000,\ r=0.024,\ m=4,\ t=8\).
\[ \begin{aligned} A &= 20000\left(1+\frac{0.024}{4}\right)^{4\cdot 8} \\ &= 20000(1.006)^{32}. \end{aligned} \]Using a calculator,
\[ (1.006)^{32} \approx 1.211, \]so
\[ A \approx 20000 \cdot 1.211 \approx 24{,}220. \]The closest choice is $24,200.
Answer: B
Problem 11
Suppose the marginal cost (in dollars per unit) is
\[ C'(x) = 6x + 7, \]when \(x\) units are produced.
If it costs $80 to produce 3 units, find the cost function \(C(x)\).
Options
A. \(C(x) = 6x + 87\)
B. \(C(x) = 6x\)
C. \(C(x) = 3x^{2} + 7x\)
D. \(C(x) = 3x^{2} + 7x + 32\)
E. \(C(x) = 3x^{2} + 7x + 80\)
Hint 1: Start here
How do you move from marginal cost \(C'(x)\) to total cost \(C(x)\), and where is the given value \(C(3)=80\) used?
Hint 2: Idea and first steps
- Compute \[ C(x) = \int(6x+7)\,dx. \]
- Use the condition “it costs $80 to produce 3 units” → \(C(3)=80\) to solve for the constant.
Solution
We have
\[ C'(x) = 6x+7. \]Step 1: Integrate
\[ \begin{aligned} C(x) &= \int(6x+7)\,dx \\ &= \int 6x\,dx + \int 7\,dx \\ &= 6\cdot\frac{x^{2}}{2} + 7x + K \\ &= 3x^{2} + 7x + K. \end{aligned} \]Step 2: Use \(C(3)=80\)
\[ \begin{aligned} C(3) &= 3(3)^{2} + 7(3) + K \\ 80 &= 3\cdot 9 + 21 + K \\ 80 &= 27 + 21 + K \\ 80 &= 48 + K \\ K &= 32. \end{aligned} \]So
\[ C(x) = 3x^{2} + 7x + 32. \]Compare with options: this is option D.
\[ \boxed{C(x) = 3x^{2} + 7x + 32.} \]Answer: D
Problem 12
Using the Fundamental Theorem of Calculus, evaluate the definite integral
\[ \int_{1}^{4} \left(2x + \frac{3}{x} + 7\right)\,dx. \]Hint 1: Start here
For \(\int_1^4\left(2x+\frac{3}{x}+7\right)dx\), why is it useful to split the integrand into separate pieces before integrating?
Hint 2: Idea and first steps
Find an antiderivative \(F(x)\) such that:
\[ F(x) = x^{2} + 3\ln|x| + 7x, \]then compute \(F(4)-F(1)\).
Solution
Compute:
\[ \int_{1}^{4} \left(2x + \frac{3}{x}+7\right)\,dx. \]Step 1: Find an antiderivative
Integrate term by term:
- \(\displaystyle \int 2x\,dx = x^{2}\),
- \(\displaystyle \int \frac{3}{x}\,dx = 3\ln|x|\),
- \(\displaystyle \int 7\,dx = 7x\).
So an antiderivative is
\[ F(x) = x^{2} + 3\ln|x| + 7x. \]Step 2: Evaluate from 1 to 4
\[ \int_{1}^{4} \left(2x + \frac{3}{x}+7\right)\,dx = F(4) - F(1). \]Compute \(F(4)\):
\[ \begin{aligned} F(4) &= 4^{2} + 3\ln 4 + 7\cdot 4 \\ &= 16 + 3\ln 4 + 28 \\ &= 44 + 3\ln 4. \end{aligned} \]Compute \(F(1)\):
\[ \begin{aligned} F(1) &= 1^{2} + 3\ln 1 + 7\cdot 1 \\ &= 1 + 0 + 7 \\ &= 8. \end{aligned} \]Now subtract:
\[ \begin{aligned} \int_{1}^{4} \left(2x + \frac{3}{x}+7\right)\,dx &= F(4)-F(1) \\ &= (44 + 3\ln 4) - 8 \\ &= 36 + 3\ln 4. \end{aligned} \]Optionally approximate:
- \(\ln 4 \approx 1.386\),
- \(3\ln 4 \approx 4.158\),
- so total ≈ \(36 + 4.158 = 40.158\).
Problem 13
Find the derivatives of the following functions. Your answers do not need to be simplified.
(a) \(h(x) = x^{5}\ln x\)
Hint 1: Start here
For \(h(x)=x^5\ln x\), which derivative rule combines these two factors?
Hint 2: Idea and first steps
Let
\[ f(x) = x^{5}, \quad g(x) = \ln x. \]Then
\[ h(x) = f(x)g(x),\quad h'(x) = f'(x)g(x) + f(x)g'(x). \]Solution
Let
\[ f(x) = x^{5}, \quad g(x) = \ln x. \]Then
\[ f'(x) = 5x^{4},\quad g'(x) = \frac{1}{x}. \]By the product rule:
\[ \begin{aligned} h'(x) &= f'(x)g(x) + f(x)g'(x) \\ &= 5x^{4}\ln x + x^{5}\cdot\frac{1}{x} \\ &= 5x^{4}\ln x + x^{4}. \end{aligned} \]\[ \boxed{h'(x) = 5x^{4}\ln x + x^{4}.} \](b) \(j(x) = e^{\sqrt{x} + 5x^{2}}\)
Hint 1: Start here
For \(j(x)=e^{\sqrt{x}+5x^2}\), what is the outer function and what is the inner function of \(x\)?
Hint 2: Idea and first steps
Let
\[ u(x) = \sqrt{x} + 5x^{2}. \]Find \(u'(x)\), then multiply by \(e^{u(x)}\).
Solution
Let
\[ u(x) = \sqrt{x} + 5x^{2} = x^{1/2} + 5x^{2}. \]Compute
\[ u'(x) = \frac{1}{2}x^{-1/2} + 10x = \frac{1}{2\sqrt{x}} + 10x. \]Since \(j(x) = e^{u(x)}\), by the chain rule:
\[ \begin{aligned} j'(x) &= e^{u(x)}\,u'(x) \\ &= e^{\sqrt{x} + 5x^{2}}\left( \frac{1}{2\sqrt{x}} + 10x \right). \end{aligned} \]\[ \boxed{j'(x) = e^{\sqrt{x} + 5x^{2}}\left( \frac{1}{2\sqrt{x}} + 10x \right).} \]Problem 14
Let the cost (in dollars) to produce \(x\) hundred units be
\[ C(x) = x^{3} + 7x + 1024. \]Here \(x\) is measured in hundreds of units.
How many units must be produced in order for the average cost to be an absolute minimum?
Hint 1: Start here
What expression represents average cost, and what condition identifies where that average cost can be minimized?
Hint 2: Idea and first steps
- Compute \[ \overline{C}(x) = \frac{x^{3} + 7x + 1024}{x}. \] Simplify.
- Compute \(\overline{C}'(x)\), set it equal to zero.
- Solve for \(x\), and remember that \(x\) is in hundreds of units.
Solution
Average cost (per hundred units) is
\[ \overline{C}(x) = \frac{C(x)}{x} = \frac{x^{3} + 7x + 1024}{x}. \]Simplify: [ \begin{aligned} \overline{C}(x) &= \frac{x^{3}}{x}
- \frac{7x}{x}
- \frac{1024}{x} \ &= x^{2} + 7 + \frac{1024}{x}. \end{aligned} ]
So
\[ \overline{C}(x) = x^{2} + 7 + \frac{1024}{x}. \]To find where this is minimized, differentiate and set equal to zero:
\[ \begin{aligned} \overline{C}'(x) &= 2x - 1024x^{-2} \\ &= 2x - \frac{1024}{x^{2}}. \end{aligned} \]Set \(\overline{C}'(x)=0\):
\[ \begin{aligned} 2x - \frac{1024}{x^{2}} &= 0 \\ 2x &= \frac{1024}{x^{2}} \\ 2x^{3} &= 1024 \\ x^{3} &= 512 \\ x &= \sqrt[3]{512}. \end{aligned} \]Since \(512 = 8^{3}\), we get
\[ x = 8. \]So the candidate for minimum average cost is \(x=8\) hundreds of units.
Now, instead of using the second derivative, we check values near \(x=8\):
\[ \overline{C}(8) = 8^{2} + 7 + \frac{1024}{8} = 64 + 7 + 128 = 199. \]Check a bit to the left, say \(x=7\):
\[ \overline{C}(7) = 7^{2} + 7 + \frac{1024}{7} \approx 49 + 7 + 146.29 \approx 202.29 > 199. \]Check a bit to the right, say \(x=9\):
\[ \overline{C}(9) = 9^{2} + 7 + \frac{1024}{9} \approx 81 + 7 + 113.78 \approx 201.78 > 199. \]Since \(\overline{C}(8)\) is smaller than nearby values \(\overline{C}(7)\) and \(\overline{C}(9)\),
we can conclude that \(\overline{C}(x)\) has an absolute minimum at \(x=8\) (for \(x>0\)).
Remember \(x\) is in hundreds of units, so the number of units is
\[ 8 \times 100 = 800\ \text{units}. \]\[ \boxed{\text{800 units must be produced for minimum average cost.}} \]Problem 15
A baseball team is trying to determine what price to charge for tickets.
- At a price of $24 per ticket, it averages 20,000 people per game.
- For every increase of $1 in ticket price, it loses 400 people.
- Every person at the game spends an average of $6 on concessions.
Let \(x\) represent the increase in ticket price above $24 (in dollars).
(a) What price per ticket should be charged in order to maximize revenue (tickets + concessions)?
(b) What is the maximum revenue?
Hint 1: Start here
Which quantities change with \(x\), and how should ticket revenue and concession revenue be combined into one total revenue model?
Hint 2: Idea and first steps
- Ticket price: \(24 + x\).
- Number of people: \(20{,}000 - 400x\).
- Concession revenue: \(6(20{,}000 - 400x)\).
- Total revenue: \[ R(x) = (24+x)(20{,}000 - 400x) + 6(20{,}000 - 400x). \]
- Find derivative and solve to get max
Solution
Let \(x\) be the increase (in dollars) above $24.
Step 1: Express price and attendance in terms of \(x\)
Ticket price:
\[ p(x) = 24 + x. \]Attendance:
\[ N(x) = 20{,}000 - 400x. \](Every $1 increase loses 400 people.)
Step 2: Ticket revenue
\[ \text{Ticket revenue} = p(x)\cdot N(x) = (24 + x)(20{,}000 - 400x). \]Step 3: Concession revenue
Each person spends $6 on concessions, so
\[ \text{Concession revenue} = 6\cdot N(x) = 6(20{,}000 - 400x). \]Step 4: Total revenue function
\[ \begin{aligned} R(x) &= \text{Ticket revenue} + \text{Concession revenue} \\ &= (24 + x)(20{,}000 - 400x) + 6(20{,}000 - 400x). \end{aligned} \]First expand \((24+x)(20{,}000 - 400x)\):
\[ \begin{aligned} (24+x)(20{,}000 - 400x) &= 24\cdot 20{,}000 + x\cdot 20{,}000 - 24\cdot 400x - 400x^{2} \\ &= 480{,}000 + 20{,}000x - 9{,}600x - 400x^{2} \\ &= 480{,}000 + 10{,}400x - 400x^{2}. \end{aligned} \]Next, the concession term:
\[ 6(20{,}000 - 400x) = 120{,}000 - 2{,}400x. \]Add them:
\[ R(x) = \bigl(480{,}000 + 10{,}400x - 400x^{2}\bigr) + \bigl(120{,}000 - 2{,}400x\bigr) = 600{,}000 + 8{,}000x - 400x^{2}. \]So
\[ R(x) = -400x^{2} + 8{,}000x + 600{,}000. \]This is a downward-opening quadratic, so it has a maximum.
Step 5: Use calculus to find the maximum
Algebra note: We could find the maximum by using the vertex formula
\[ > x = -\frac{b}{2a} > \]for a parabola.
But this is a calculus class, so we’ll find the maximum using the derivative.
Differentiate:
\[ R'(x) = \frac{d}{dx}\bigl(-400x^{2} + 8{,}000x + 600{,}000\bigr) = -800x + 8{,}000. \]Set \(R'(x)=0\) to find critical points:
\[ \begin{aligned} -800x + 8{,}000 &= 0 \\ -800x &= -8{,}000 \\ x &= \frac{-8{,}000}{-800} \\ x &= 10. \end{aligned} \]So the revenue is maximized when \(x = 10\).
Recall \(x\) is the increase above $24, so the ticket price is
\[ p = 24 + x = 24 + 10 = 34 \text{ dollars}. \]That answers part (a).
Because \(R(x)\) is a downward-opening parabola (coefficient \(-400 < 0\)), this critical point is indeed a maximum.
Step 6: Find the maximum revenue
Compute \(R(10)\):
\[ \begin{aligned} R(10) &= -400(10)^{2} + 8{,}000(10) + 600{,}000 \\ &= -400\cdot 100 + 80{,}000 + 600{,}000 \\ &= -40{,}000 + 80{,}000 + 600{,}000 \\ &= 640{,}000. \end{aligned} \]So the maximum total revenue (tickets + concessions) is
\[ \boxed{R_{\max} = \$640{,}000.} \]Answer summary
- (a) The team should charge $34 per ticket.
- (b) The maximum revenue is $640,000.