DSC 1370: Business Mathematics

Chapter 01
Functions

S.R. Ginige
Department of Decision Sciences
Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
 Functions
From this chapter, it is expected to
 Provide an understanding of the nature and notation of mathematical functions.
 Discuss varieties of applications of functions in Business and Economics.

After learning the content of this chapter, the students will be able to;
 present and understand the functions with the use of mathematical notations.
 analyse various kind of business and economics applications in order to make the
decisions by using the concept of functions.

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In the previous Lectures,
 Introduction
 Review of Algebra
Topics to be covered in this lecture
 Definition of function (ශ්‍රිත අර්ථදැක්වීම)
 Functional notations and functional values
 Arithmetic of functions
Functions
The function concept is one of the most important concepts in mathematics. The
idea of correspondence plays a central role in its formulation. You have already
had experience with correspondence in every day life.

Examples: (i) For the sale of x items there corresponds revenue.

(ii) For the manufacture of x items there corresponds a cost.

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Recap from school level…
 Linear functions (straight lines) y  mx  c m – slope and c - Intercept

is not defined

 Quadratic functions y  ax  bx  c
2
a, b and c are constants and a  0

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DEFINITION

 A function is a rule that assigns to each input number(Independent Variable)

exactly one output number (Dependent Variable).

 Independent variable – Variable that represents input numbers

 Dependent variable – Variable that represents output numbers

 Functions are often denoted by the letters such as f, g, h, F, G, etc. and specified
by a defining equation in functional notation.

Domain : The set of values, which the independent variable is allowed to assume,
Range : The set of all output numbers.
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 Functions
y  f x   x 2
Domain Range

2
4
1
1
0
0
-1

Domain : The set of values, which the independent variable is allowed to assume,
Range : The set of all output numbers.
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 Functions

Domain Range Domain Range Domain Range

x1 x1
y1 y1 x1 y1
x2 x2
y2 y2 x2 y2
x3 x3
y3 y3 x3 y3
x4 x4
y4

X  X
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 Functional Notations and Functional values

Example 1: The equation y  f ( x )  5x  3defines a function f using

functional notation. The letter x is the independent variable of f and
the notation f(x) is read “f of x.” If ‘a’ is any particular value of x,

the value of the function for x = a is denoted by f(a).

When x=2, functional value y  f ( 2 )  5  2  3  10  3  13

When x=  3, functional value y  f ( 3)  5  3  3
 15  3
  12

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 Functional Notations and Functional values

Example 1: (ii) (@page 3) For each function, find the indicated functional
values. g ( x)  x  x  3,
2 g (1), g (1)

Answer: g  1  1   1  3
2

 1 1  3
5

g 1  1 1  3
2

 1 1  3
3
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Example 2:
 Suppose that in a market the weekly total cost of producing a
certain product is given by , C q   2q  100q  3600.
2

(i) Compute the cost of manufacturing 10 units.

(ii) Compute the cost of manufacturing 11th unit.

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 C q   2q  100q  3600.
2
Answer:
 (i) Cost of manufacturing 10 units  C 10 
 2  10  10010  3600
2

 200  1000  3600

 Rs.4800

 (ii) Cost of manufacturing 11th unit  C 11  C 10 

 4942  4800
 Rs 142.00
C 11  2  11  100 11  3600
2

 4942

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Exercise 2: (@page3)
 The total cost function of a company is given by, C  x   2 x  9 x  12 x.
3 2

Where x represents the number of units produced.

(i) What is the cost to produce the 15 units?
(ii) What is the cost to produce the 16th unit?
Answer:
(i) Cost to produce 15 units = C 15  215  915  1215
3 2

 6750  2025 180

 4905
C 16  2 16  9 16  12 16
 3 2

(ii) Cost to produce the 16th unit = C 16   C 15  8192  2304  192
 6080  4905
 6080
 1175
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Exercise 3: (@page4)
 An efficiency study of the morning shift at a certain factory indicates that an
average worker who arrives on the job at 8:00 A.M. will have assembled,
f x   x  6 x  15x television sets x hours later.
3 2

(i) How many sets will such a worker have assembled by 10:00 A.M.?
(ii) How many sets will such a worker assemble between 9: 00 A.M and
10:00 A.M.?

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 f x   x  6 x  15x
3 2
Exercise 3:
 Answer: x – number of hours worked since 8.00 a.m.
(i) How many sets will such a worker have assembled by 10:00 A.M.?

x = 2; number of TV sets assembled

 f 2 
during 8.00 a.m. to 10.00 a.m.
 
  2  6  2  15  2
3 2

 46 TV Sets
(ii)How many sets will such a worker assemble between 9: 00 A.M and 10:00 A.M.?
What is x? x = 2;

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 f x   x  6 x  15x
3 2
Exercise 3:
 Answer: x – number of hours worked since 8.00 a.m.
(ii)How many sets will such a worker assemble between 9: 00 A.M and 10:00 A.M.?
number of TV sets assembled  f 2   f 1
during 9.00 a.m. to 10.00 a.m.  46  20
 26 TV Sets

 
f 1   1  6 1  15 1  20
3 2

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 f x   x  6 x  15x
3 2
Exercise 3:
 Answer: x – number of hours worked since 8.00 a.m.
(ii)How many sets will such a worker assemble between 9: 00 A.M and 10:00 A.M.?
number of TV sets assembled  f 2   f 1
during 9.00 a.m. to 10.00 a.m.  46  20
 26 TV Sets

 
f 1   1  6 1  15 1  20
3 2

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Exercise 4:
 The profit from the production and sales of a product is,
2
𝑃 𝑥 = 47𝑥 − 0.01𝑥 − 8000
where 𝑥 represents the number of units produced and sold. Find,
(i) The profit from production and sale of 2000 units.
(ii) The value of 𝑃(5000) and explain the meaning.

Answer: (i) The profit from production

 P2000
and sale of 2000 units)
 47  2000  0.01 2000  8000
2

 94000  40000  8000

 46000
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Exercise 4:
 The profit from the production and sales of a product is,
𝑃 𝑥 = 47𝑥 − 0.01𝑥 2 − 8000
where 𝑥 represents the number of units produced and sold. Find,
(i) The profit from production and sale of 2000 units.
(ii) The value of 𝑃(5000) and explain the meaning.

Answer: (ii) P5000   47  5000  0.01 5000  8000

2

 235000  250000  8000

  23000
Meaning: when 5000 units are produced and sold the total loss of the
company is 23,000 rupees.
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The Arithmetic of Functions
 The basic arithmetic operations + Addition,  Subtraction,  Multiplication
 Division

Apply Arithmetic Operations Result Example

Numbers New Number 2+3 = 5

Algebraic Expressions New Algebraic Expression (2x+3y)+(3x+y+2) = 5x+4y+2

Functions New Function

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The Arithmetic of Functions
 Functions can be added, subtracted, multiplied and divided to form new
functions. Given the two functions f and g:
Arithmetic Denoted by Defined by Example
Operation
Sum (addition) Total Cost = Variable cost + Fixed Cost
f +g (f + g)(x) = f(x) + g(x) TC(q) = m q + C
Difference Profit = Total Revenue  Total Cost
(subtraction) fg (f g)(x) = f(x)  g(x) P(q) = TR(q)  TC(q)
Product Total Revenue = Price/unit  quantity
f.g (f . g)(x) = f(x) . g(x)
(multiplication) = Demand  quantity
Quotient f ( x)
(Division)
f/g (f / g)(x) =
g( x ) , g x   0 Average cost = TC(q)/q

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The Arithmetic of Functions
 Examples: (@page 4)
3 2
 (i) Given that f and g are functions defined by 𝑓 𝑥 = 𝑥 + 𝑥 + 𝑥 − 3 and
𝑔 𝑥 = 𝑥 3 − 1. Find: f +g , f – g, f.g and f /g.

 Answer:
 f +g (f + g)(x) = f(x) + g(x)  x 3  x 2  x  3  x 3  1
 2x  x  x  4
3 2

 f–g (f g)(x) = f(x)  g(x)  x  x  x  3  x  1

3 2 3

 x  x  x  3  x 1
3 2 3

 x  x2
2

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The Arithmetic of Functions
 Examples: (@page 4)
 (i) Given that f and g are functions defined by 𝑓 𝑥 = 𝑥 3 + 𝑥 2 + 𝑥 − 3 and
𝑔 𝑥 = 𝑥 3 − 1. Find: f +g , f – g, f.g and f /g.
 Answer:
 f.g 
(f . g)(x) = f(x) . g(x)  x  x  x  3  x  1
3 2 3
  
 x x  x3 3 2  x  x  3
 x  3  1 x 3 2

 x  x  x  3x  x  x  x  3
6 5 4 3 3 2

 x  x  x  4x  x  x  3
6 5 4 3 2

 f /g f ( x)
 x 3
 x  x  3
2

x  1
(f / g)(x) =
g( x ) 3

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 The Arithmetic of Functions
 Exercises: (@page 4 and 5)
 (1) A television manufacturer produces ‘q’ sets per week at a total cost of Rs.
2q  156q  5000. It is estimated that if the televisions are sold for ′𝑝′ rupees
2

per set, consumers will buy 1200 – 16𝑞 sets. Express the manufacturer’s
monthly profit as a function of q.
 Answer: Cost function; C q   2q  156q  5000
2

 Revenue function; Rq   p  q Demand  q  1200  16q   q

 1200q  16q 2

  Profit function;
Pq   Rq   C q   1200q  16q  2q  156q  5000
2 2

 1200q  16q  2q  156q  5000

2 2

 18q  1044q  5000

2
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 The Arithmetic of Functions
 Exercises: (@page 4 and 5)
C x   3x  x  2
1
(2) The total cost of manufacturing x units of a certain commodity is 3

5
rupees. Express the average cost per unit as a function of x.
1
3x  x  2
3
C x 
 Answer: Average Cost function; AC  x    5
x x
1
3 x
3x 5 2
  
x x x
1 2
 3x  
2

5 x
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 The Arithmetic of Functions
 Exercises: (@page 4 and 5)
(3) A manufacturer of garbage disposal bags has a daily fixed cost of Rs. 15,000 and
a production cost of Rs. 100 for each bag manufactured.
(i) Express the cost C as a function of x.
(ii) What is the cost to manufacture the 200 garbage disposal bags?
Answer: (i)
Daily Cost function; C  x   var iable cos t  Fixed cos t , x – number of bags
C  x   100 x  15000

 (ii) C 200   100 200  15000  35,000

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 Linear Functions (Straight Lines); @page 07
Forms of Equations of Straight Lines
The equation of a straight line can be expressed in different forms;
1 .Slope-Intercept Form: y = mx + c, where m is the slope of the line and c is the y-intercept (that is, the point where the line intersects the y-axis).
Example: y  3 x  4

2. General Form: ax + by + c = 0, where a, b and c are constants and both a and b are not zero. We call this a general linear equation in the variables x
and y and, x and y are said to be linearly related.
Example:  3 x  y  4  0

3. Slope-Point Form
y  y1  m( x  x1 ) is the slope – point form of an equation of the straight line passing through the point (x1, y1) line having slope m.
Example: y  7  3x  1

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Linear Functions (Straight Lines)…
 SLOPE OR THE GRADIENT OF A STRAIGHT LINE (m);

 Definition: If P1(x1, y1) and P2(x2, y2) are any two distinct points on line l, which is not parallel to
the y-axis, then the slope of l, denoted by m, is given by,
y 2  y1
m
x2  x1

Behaviour of straight lines for different m values are shown below;

is not defined

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 Exercise 3: (@page 08)
 The total cost y, for x units of a certain product consists of fixed cost and the
variable cost.The total cost is Rs.6000 for 50 units and Rs.9000 for 100 units.
a) Find the linear relationship between x and y.
b) What does the slope of the line indicates?
c) Find the cost to produce 200 units.

30
 Answer:
(a) Let y  mx  c be the linear relationship between x and y
Given that when x  50 , y  6000 and x  100 , y  9000
y 2  y1 9000  6000 3000
Hence using, m  m   60
x2  x1 100  50 50
y  60 x  c
substituting y  6000 and x  50 in the above equation,
Can determine the value of c, 6000  60  50  c
c  3000
linear relationship between x and y y  60 x  3000
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 Answer: y  60 x  3000

(b) Slope of the line indicates that the variable cost per unit.

(c) Cost to produce 200 units;

y  60  200  3000
 Rs.15000.00

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Summary
 Definition of Functions
 The Arithmetic of Functions

 In the next lecture,

 Applications of Functions In Business And Economics
 Break-even analysis
 Equilibrium analysis

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 Thank You

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