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Aly Abaza Applying Rational Functions Mid-Unit Assignment

Rational Functions

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Amr Kabil
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79 views

Aly Abaza Applying Rational Functions Mid-Unit Assignment

Rational Functions

Uploaded by

Amr Kabil
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Applying Rational Functions Mid-Unit Assignment

Title: Rational functions in economics


Abstract: In this report I present how I use rational functions in the field of economics. I provide
an overview of professional life, including necessary education, daily duties, and average salary.
I then delve a little deeper into the specific use of rational functions in economics, including
sample function analysis and its relevant features such as intercepts, asymptotes, and maxima
and minima. I conclude my report with a summary of the findings and a list of the sources used.

Introduction: Economics is a social science that studies how individuals, businesses, and
governments make decisions about allocating resources. It is a broad field that includes different
subfields such as microeconomics, macroeconomics, and econometrics. Working in economics
requires a strong understanding of mathematical concepts, including rational functions.

To become an economist, one typically needs a bachelor's degree in economics or a related field
such as mathematics or statistics. Some positions may require a master's or doctoral degree.
Economists are responsible for analyzing data, conducting research, and making predictions
about economic trends. They use various mathematical tools, including rational functions, to
model and understand economic phenomena.
Function Analysis:
A rational function is a function that can be written as the ratio of two polynomial functions. In
economics, rational functions are used to model relationships between variables such as supply
and demand, cost and revenue, and production and profit. For example, the demand for a product
can be represented by a rational function, where the numerator represents the quantity demanded
and the denominator represents the price. To analyze a rational function, we must first determine
its intercepts, asymptotes, and any holes.
The x-intercepts represent the points where the function crosses the x-axis, while the y-intercept
represents the point where the function crosses the y-axis. Asymptotes are lines that the graph of
the function approaches but never touches.
They can be horizontal, vertical, or oblique. Holes occur when there is a common factor in both
the numerator and denominator of the rational function, resulting in a point where the function is
undefined. In economics, the x-intercepts represent the equilibrium points, where the quantity
demanded equals the quantity supplied. The y-intercept represents the initial cost or revenue, and
the asymptotes represent the limits to the growth or decline of the function. Holes can occur
when there are external factors that affect the relationship between the variables.

Suppose that manufacturing an item has fixed costs of $4000 and per-item (marginal) costs of
$20 per item.

Then average cost is C(x)=


The average cost function is one example of a rational function, which is a function made up of a
fraction of two polynomials.

where x is the number of units produced.


The x-intercept of this function (-200,0) represents the break-even point, where revenue equals
cost, but in this case the x-intercepts has no real meaning
The y-intercept represents the initial cost of $400 at (400,0), and the horizontal asymptote y=20
represents the minimum average cost of $20.
The function also has a vertical asymptote at x = -10
I used Desmos to plot this function and found that maximum Cost occurs at x = 0, where the
company produces 0 units of the product. This is the point at (0,400) and any further increase in
output will result in a decrease in Cost.
The average cost function

Conclusions:
In conclusion, rational functions play a crucial role in the field of economics. They are used to
model relationships between variables and make predictions about economic trends. The
intercepts, asymptotes, and holes of a rational function provide valuable insights into the
behavior of the variables in an economic system. Understanding rational functions is essential for
anyone pursuing a career in economics.

Sources Cited:
1. "Economists." Bureau of Labor Statistics, U.S. Department of Labor, www.bls.gov/ooh/life-
physical-and-social-science/economists.htm.
2. Stewart, James. Calculus: Early Transcendentals. Cengage Learning, 2016.

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