1 of 25

INTRODUCTION TO � DIFFERENTIATION

INTRODUCTION;

RULES OF DIFFERENTIATION

(CONSTANT FUNCTIONS, LINEAR FUNCTIONS, SUM AND DIFFERENCING OF FUNCTIONS, PRODUCT OF FUNCTIONS, QUOTIENT OF FUNCTIONS, EXPONENTIAL AND LOGARITHMIC FUNCTIONS), THE CHAIN RULE, HIGHER ORDER DERIVATIVES

APPLICATIONS IN ECONOMICS AND BUSINESS

(MARGINAL REVENUE AND MARGINAL COST)

2 of 25

DIFFERENTIATION

INTRODUCTION

Change is inevitable in all that we do. In Economics and Business however, it is of much concern to understand how things such as demand, cost, revenue, etc. will change with respect to a certain independent variable, probably price.

​

The concept of derivative therefore gives information on how a certain function changes in response to changes in an independent variable.

​

Take a production function for example, the derivative of such a function provides information on how the output of a production process changes as the number of employees change.

​

3 of 25

DIFFERENTIATION

  •  

4 of 25

DIFFERENTIATION

  •  

5 of 25

DIFFERENTIATION

  •  

6 of 25

DIFFERENTIATION

  •  

7 of 25

DIFFERENTIATION

  •  

8 of 25

DIFFERENTIATION

  •  

9 of 25

DIFFERENTIATION

  •  

10 of 25

DIFFERENTIATION

  •  

11 of 25

DIFFERENTIATION

  •  

12 of 25

DIFFERENTIATION

  •  

13 of 25

DIFFERENTIATION

  •  

14 of 25

DIFFERENTIATION

  •  

15 of 25

DIFFERENTIATION

  •  

16 of 25

DIFFERENTIATION

  •  

17 of 25

DIFFERENTIATION

  •  

18 of 25

DIFFERENTIATION

  •  

19 of 25

DIFFERENTIATION

  •  

20 of 25

DIFFERENTIATION

  •  

21 of 25

DIFFERENTIATION

  •  

22 of 25

DIFFERENTIATION

  •  

23 of 25

DIFFERENTIATION

  •  

24 of 25

ILLUSTRATIONS (FIG 1)

25 of 25

ILLUSTRATIONS (FIG 2)