DERIVATIVES IN ECONOMICS

The “slope” in mathematical use is the concept of ‘marginalism’ in economic use. Thus if Y=Y(x), dy/dx stands for change in Y as a result of one unit change in X, i.e. marginal y of x. This slope or marginal function has enormous use in managerial economics. Thus,

marginal-function-of-economics

(The standard rules of differentiation in calculus are given at the end of the post.)

 

In case of ‘averages’ Average demand

S/A  =  Average sales

R/Q  = Average revenue

C/Q =  Average costs

economic-concept-of-elasticity

 

The standard rules of differentiation in calculus :

rules-of-differentiation-in-calculas2

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