2.7 applications of derivatives to business and economics
2.7 Applications of Derivatives to Business
Applications of the Derivative. Applications of Derivatives to Business and Economics. In recent years, economic decision making has.and
Larry J. Goldstein , David C. Lay , David I. Schneider , Nakhle H. For one- or two-semester courses in Calculus for students majoring in business, social sciences, and life sciences.
Marginal analysis in an important topic in business calculus, and one you will very likely touch upon in your class. In words: To perform marginal analysis on either profit, revenue or cost, find the derivative function for the one quantity out of these three that you are estimating for. The derivatives of these quantities are called marginal profit function, marginal revenue function and marginal cost function, respectively. Both approaches are explained below. On the other hand, calculating exactly how the quantity changes instead of estimating is a little different, since it uses the original function instead of the derivative. Remember that to estimate quantities, you need to use derivatives. However, to find actual quantities, you need to use the original function instead.
We are unable to find iTunes on your computer. To listen to an audio podcast, mouse over the title and click Play. Open iTunes to download and subscribe to podcasts. Brief Calculus is for students interested in business, economics, life science, or social sciences. Holy cow - this podcast made me feel smart AND taught my how to do upper division university microeconomic derivatives.
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Faced with huge masses of statistical data, depending on hundreds or even thousands of different variables, business analsts and economists have increasingl turned to mathematical methods to help them describe what is happening, predict the effects of various polic alternatives, and choose reasonable courses of action from the mriad of possibilities. Among the mathematical methods emploed is calculus. In this section we illustrate just a few of the man applications of calculus to business and economics. All our applications will center on what economists call the theor of the firm. In other words, we stud the activit of a business or possibl a whole industr and restrict our analsis to a time period during which background conditions such as supplies of raw materials, wage rates, and taes are fairl constant. We then show how derivatives can help the management of such a firm make vital production decisions. Management, whether or not it knows calculus, utilizes man functions of the sort we have been considering.
Schedule and Homework For each week there will be a link to a page with a reading assignment and a homework assignment. This schedule is tentative. It will get more accurate as the semester progresses. No week's topics should be taken as final until the homework is linked. Some Important Functions.
Business and Economic Applications
21-111: Calculus I
By Larry J. Goldstein, David C. Lay, David I. Schneider, Nakhle H. More Product Info. If you rent or purchase a used book with an access code, the access code may have been redeemed previously and you may have to purchase a new access code. Access codes that are purchased from sellers other than Pearson carry a higher risk of being either the wrong ISBN or a previously redeemed code.