# Lecture 0 - Math review

rename
pranitsingh524's
version from
2016-09-07 18:02

## Section

Question | Answer |
---|---|

what branch of science is economics? | social science |

what is the language of all sciences? | math |

what is the goal of optimization? | to maximize profits |

Give 2 examples of marginal analysis. | MC(marginal cost) & MB(marginal benefits) |

what the first "first derivatives" of math functions? | marginal analysis |

what is marginal analysis? | an important decision-making tool in the business world that allows business owners to measure the additional benefits of one production activity versus its costs. |

Draw a graph of firm with the objective to maximize profits & label it's equation (slide 8)

Now using the derivate of the slope, find q that will maximize the profits between TC & TR and label the slope of each.

Question | Answer |
---|---|

what is the slope of TR? | MR & first derivative |

What is the slope of TC? | MC & first derivative |

what does TR stand for? | total revenue |

what does TC stand for? | total cost |

what does MC stand for? | marginal cost |

what does MR stand for | marginal revenue |

what is the equation of MR? How do you get there? | Tr/q=deltatr/deltaq=dtr/dq |

what is the equation of MC? How do you get there? | tc/q=deltatc/deltaq=dtc/dq |

what does delta equal? what does d mean w/ /respect to q? | d ; small changes in q |

what is the most common type of differentiation used? | power rule |

Question | Answer |
---|---|

If TR=500q - 5q^2, what is MR? | 500 - 10q |

if TC=300+7.5q^2, what is MC? | 15q |

if MC=54q+7, what is TC? | 27q^2 + 7q |

if ln(y)=a+bln(x), what is dy/dx equal to? | b x (y/x) |

what are ln and exp known as? | functional operations |

if y=ln(x), what does x equal? | e^y |

what do the marginals (MR & MC) depend upon? | explicit form of your equations |

Question | Answer |
---|---|

what can we use calculus to find? | variables that maximize & minimize functions |

give 1 example of a question when it comes to optimization using calculus | how much should a firm produce (q) to maximize its profits? |

what does q mean? | produce |

if q is already used, than how can you distinguish it w/ another q? | by adding * (i.e. q*) |

Understand how to get from TR(q) - TC(q) to MR=MC

Given: TR(q) = 500q-5q2 and TC(q) = 300+7.5q2, find q*

Question | Answer |
---|---|

in any economic questions, there are usually more than one variable. Give 1 example. | firms choosing labor (x) & capital (y) in production |

what is the partial derivative? | the change in a function when one variable changes while holding the other variables constant |

You're done, congrats!

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