C2 Foundation Mathematics
Quadratics and applications
INTO City, University of London
Parabola
I The graphs of quadratic functions of the form
f (x) = ax 2 + bx + c (a 6= 0)
where a, b, and c are constants, are called parabolas.
I If a > 0 (positive), then the parabola opens upward and the
graph has a minimum at its vertex.
I If a < 0 (negative), then the parabola opens downward and
the graph has a maximum at its vertex.
Example 1: minimum
I Find the minimum value of
f (x) = x 2 − 6x − 12.
I Solution: we shall use completing the square to find the
minimum value. Since ( −6 2
2 ) = −3 and (−3) = 9, we can
re-write f (x) as
f (x) = (x − 3)2 − 9 − 12
and so
f (x) = (x − 3)2 − 21.
The minimum value of f (x) will then occur when x = 3, and
so it is −21.
Example 2: maximum
I Find the maximum value of
f (x) = 3 + 8x − 2x 2 .
I Solution: Since the x 2 term is −2x 2 , divide by −2 to get:
2 3
f (x) = −2 x − 4x − .
2
Then use completing the square:
I
2 3
f (x) = −2 (x − 2) − 4 −
2
I
11
f (x) = −2 (x − 2)2 −
2
I
f (x) = −2(x − 2)2 + 11
I The maximum value of f (x) is 11 when x = 2.
Example 3: Application in Business
Example 3 (Pricing Decision). The demand per month, q, for
a certain commodity at a price p dollars per unit is given by the
relation
q = 1350 − 45p.
The cost of labour and material to manufacture this commodity is
$5 per unit and the fixed costs are $2000 per month. What price p
per unit should be charged to the consumers to obtain a maximum
monthly profit?
Solution
The total cost TC (in dollars) of producing q units per month is
TC = Variable costs + Fixed costs = 5q + 2000
The number of units produced per month, q, should equal the
demand per month, i.e.
q = 1350 − 45p
Therefore
TC = 5q + 2000 = 5(1350 − 45p) + 2000
= 8750 − 225p
The total revenue TR obtained by selling q units at p dollars per
unit is
TR = pq = p(1350 − 45p) = 1350p − 45p 2
Thus, the profit π can be expressed as
π = TR − TC = (1350p − 45p 2 ) − (8750 − 225p)
π = −45p 2 + 1575p − 8750
π = −45p 2 + 1575p − 8750
π = −45(p − 35p) − 8750
π = −45 (p − 17.5)2 − 306.25 − 8750
π = −45(p − 17.5)2 + 13781.25 − 8750
π = −45(p − 17.5)2 + 5031.25
Thus the price of p = $17.50 per unit should be charged to obtain
a maximum profit. Note that the maximum profit is $5031.25.
Example 4
Example 4 (Break-Even point)
If the total cost is TC = 500 + 90q, and total revenue is
TR = 150q − q 2 , find the break-even point(s).
Solution
At the break-even point there is no profit, the cost is equal to the
revenue: TR = TC . Hence
150q − q 2 = 500 + 90q
Rearranging we get
q 2 − 60q + 500 = 0
Solving this equation we get either q = 50 or q = 10
We can then substitute these values into either TR or TC , as they
will give the same result. Substituting into TC we get
TC = 500 + 90 × 50 = 5000
when q = 50 and
TC = 500 + 90 × 10 = 1400
when q = 10. So the break-even points are (50, 5000) and
(10, 1400).
