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Calculus: - The Two Basic Forms of Calculus Are

The marginal cost is lower than the actual change in total cost from producing the next unit. Marginal cost approximates the change, while the actual change includes the fixed costs spread out over more units of production.

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55 views19 pages

Calculus: - The Two Basic Forms of Calculus Are

The marginal cost is lower than the actual change in total cost from producing the next unit. Marginal cost approximates the change, while the actual change includes the fixed costs spread out over more units of production.

Uploaded by

gostavis chilamo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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calculus

• The two basic forms of calculus are


differential calculus and integral calculus.
• The study of calculus usually begins with
the basic definition of a derivative. A
derivative is obtained through the process of
differentiation, and the study of all forms of
differentiation is collectively referred to as
differential calculus.
What is the derivative?
• Differential calculus is about finding the
slope of a tangent to the graph of a function,
or equivalently, differential calculus is about
finding the rate of change of one quantity
with respect to another quantity
Various Symbols for the
Derivative

dy df ( x)
or f '( x) or
dx dx
dy y
Definition:  lim
dx x 0 x
4
Differentiation

• Basic Rules of Differentiation


• The Product
• Quotient Rules
• Marginal Functions in Economics
• Maximum and Minimum
• Rate of Change
1. Constant Rules

d
c  0  c is a constant 
dx
Ex. f ( x)  5
f ( x)  0
d n
dx
 
x  nx n1  n is a real number 

Ex. f ( x)  x 7
f ( x)  7 x 6
2. Real Numbers
d n
dx
 
x  nx n1  n is a real number 

Ex. f ( x)  x 7
f ( x)  7 x 6
1
x
d) f(x) =

3 2
u
e) f(x) =
1
x
Constant Multiple Rule
d d
3.  cf ( x)   c  f ( x)   c is a constant 
dx dx
Ex. f ( x )  3 x 8

 
f ( x)  3 8 x7  24 x7
Differentiate the following

1) f(x) = 1 0.9
3 2) f(x) =
3x 3
x
4. Sum and Difference Rules
d d d
 f  x   g  x     f ( x)   g ( x) 
dx dx dx
Ex. f ( x)  7  x12
f ( x)  0  12 x11  12 x11
5. Product Rule
d d d
 f  x   g  x     f ( x)  g ( x)   g ( x)  f ( x)
dx dx dx

 
Ex. f ( x)  x  2 x  5 3x  8 x  1
3 7 2

 
f ( x)  3x 2  2 3x 7  8 x 2  1   x  2 x  5  21x
3 6
 16 x 
Derivative Derivative of
of the first the second
function function

f ( x)  30 x9  48x7  105x6  40 x 4  45x 2  80 x  2


Example
Marginal Functions
The Marginal Cost Function approximates the change in
the actual cost of producing an additional unit.

The Marginal Average Cost Function measures the rate


of change of the average cost function with respect to the
number of units produced.

The Marginal Revenue Function measures the rate of


change of the revenue function. It approximates the revenue
from the sale of an additional unit.

The Marginal Profit Function measures the rate of change


of the profit function. It approximates the profit from the sale
of an additional unit.
Cost Functions
Given a cost function, C(x),
the Marginal Cost Function is

C ( x)
the Average Cost Function is

C ( x)
C
x
the Marginal Average Cost Function is


C ( x)
Revenue Functions
Given a revenue function, R(x),
the Marginal Revenue Function is

R( x)

Profit Functions
Given a profit function, P(x),
the Marginal Profit Function is

P( x)
Example: more application
The total cost (in Kwacha) of producing x Phones
per day is
C(x) = 1000 + 100x – 0.5x2 for 0 ≤ x ≤ 100.
1. Find the marginal cost at a production level of
Phones.

2) Find the marginal cost at a production level of


80 Phones and interpret the result.

3) Find the actual cost of producing the 81st


Phones and compare this with the marginal
cost.
Solution: C’(x) = 100 – x
Solution: The marginal cost is
C’(80) = 100 – 80 = $20
It costs $20 to produce the next radio (the
81st radio)
Solution: The actual cost of the 81st radio
will be
C(81) – C(80) = $5819.50 – $5800 = $19.50.

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