# 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,

(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

**The standard rules of differentiation in calculus :**