Q23: Maximum value of , or the maximum profit
(a) If ; , then find the maximum value of .
OR
(b) Find the maximum profit that a company can make, if the profit function is given by , where is the number of units and is the profit in rupees.
(a)
Let . Then
Why?
is largest when its denominator is smallest, as long as stays positive. So we look for the least value of .
Why?
This is completing the square. Take 4 out of the terms:
(Inside the bracket, .)
Half of the coefficient is , and . Adding inside the bracket adds , so the constant left outside is .
The bracket is a perfect square because , and . Also .
A square is never negative, so , which gives the last line.
So , with at . Hence .
Why?
The square is 0 exactly when , that is at . There takes its least value .
For positive numbers, taking reciprocals reverses an inequality:
Here (to divide by a fraction, multiply by its flip).
Watch out: the maximum of comes from the minimum of , not from the maximum of .
Maximum value of (at ).
(b)
For maxima and minima,
Why?
At a maximum or a minimum the tangent is flat, so the derivative is 0.
Differentiate term by term: the constant 72 gives 0, gives 42, and gives . So .
Why?
gives , so .
Second derivative test: differentiate once more to get .
So, is maximum at .
Why?
and , so .
Watch out: the question asks for the maximum profit, which is , not the number of units .
The maximum profit is ₹ 513.
Chapter 6, Application of Derivatives: Maximum value of a function; maximum profit.
Question type: (a) Maximum and minimum values you can see without calculus; (b) Local maxima and minima
How to spot it: click to see
(a) Type 6. Maximum and minimum values you can see without calculus
Spot it: a square plus a number, a modulus plus a number, or sin or cos plus a number.
Here: Completing the square gives , least at . So , its reciprocal, is at most .
(b) Type 7. Local maxima and minima: the second derivative test
Spot it: "Find the local maxima and local minima" or "the local maximum value".
Here: The profit function is given: at , and is negative, so gives the maximum, .
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Application of Derivatives in past papers: question 29 of 37 · see them all