Lecture Notes 1

Calculus for Business

Course Outline

Implicit Differentiation
Application of the Derivatives in
Business and Economics

I. The Straight Line

Inclination and Slope
The General
Straight Line

Equation

of

the

(Cost, Average Cost, Marginal Cost,

Revenue,
Average
Revenue,
Marginal
Revenue,
Profit
and
Marginal Profit)

Standard forms of the Equation of

the Straight Line
Application of the Straight Line in
Business and Economics
(Demand
and
Supply,
Market
Equilibrium, Breakeven Analysis,
Gross Mark-up of a product,
Depreciation, Budget Equation, and
Simple Discount)

III. The Integrals

Indefinite Integrals
Basic Rules for Integrals

II. Differential Calculus

Functions of One Variables
Functions and Graphs
Limits

Applications of the Integrals

Business and Economics

in

(Total Cost Function, Total Revenue

Function, Total Physical Output,
National Consumption and Savings)

Rules to Evaluate Limits

Definite Integrals

Increments

Application of the Definite Integrals

The Derivative as Rate of Change

Basic Rules for Derivatives
(The Derivative of a Constant,
Power and Sum, Difference and
Quotient of Functions)
Higher Derivatives
Maxima and Minima

in Business and Economics

(Consumers Surplus and Producers
Surplus)

Lecture Notes 2
Calculus for Business

The Straight Line

-

the simplest curve

very important in the study of

economics

I (+,+)

III (-,-)

II (-,+)

IV (+,-)

There
is
always
a
one-to-one
correspondence between a pair of point.
Angle of Inclination
-

the smallest positive angle which

the line makes with the positive
x-axis.

Rene Descartes (1596-1650)

-

French mathematician

He studied the relationship of the

straight
line
and
algebraic
equations (with two variables)

Slope of a line
-

the tangent function of the

inclination of the straight line,
denoted by m.