14 views

Uploaded by Al Binn

Sets, Functions

- daily lesson log
- Tutorial Truss 26 Mar 2015
- Cfo10e Ch01 Ge
- grade 5 unit 7 parent letter 1
- TEST 1
- Saa_Mock3
- Chapter - 6- Mfr. Process
- Session 1 Introduction
- Costing Princples and Business Control Systems (Assessement Criteria 1.1)
- TIME Collected
- CFO10e_ch01macro1
- 3623_1343306960
- TEXAS NINTH GRADE END OF COURSE TEST PREPARATION Solving Inequalities With Variables on Both Sides
- Business Plan Template
- 1. Intro to Coordinate Plane
- session3_2014
- LECTURE 2
- Check Figures
- Modelling Tutorial - SimpleHouse.pdf
- 5 Lecture 3

You are on page 1of 7

Department of Mathematics

CALCULUS FOR COMMERCE

I REVIEW ON SETS AND INTERVALS

SETS

A SET is a well-defined collection objects.

Example:

The set of counting numbers: = 1,2,3, = {| = 1,2,3, }

We label a set with the capital letters of the English alphabet such as A,B,C, and enclosed

the elements with braces { }. The symbol is read as an element of or belongs to. For

example, 1 which means 1 is an integer. If the set is empty we denote it by or {}.

INEQUALITY and INTERVALS

Recall the four inequalities: < , , > and .

Inequality Properties

An equivalent inequality will result, and the sense or direction will remain the same if each

side of the original inequality:

1. has the same real number added to or subtracted from it.

2. is multiplied or divided by the same positive number.

An equivalent inequality will result, and the sense or direction will reverse if each side of the

original inequality:

3. is multiplied or divided by the same negative number.

NOTE: Multiplication by 0 and division by 0 are not permitted.

If < , the double inequality < < means that < and > ; that is, x is between a

and b. Interval notation is also used to describe sets defined by inequalities, as shown in the

Table 1. The numbers a and b in Table 1 are called the endpoints of the interval. An interval is

closed if it contains all its endpoints and open if it does not contain any of its endpoints. The

intervals [, ], ( , ], and [, +) are closed, and the intervals (, ), ( , ), and (, +)

are open. Note that the symbol (read infinity) is not a number. When we write [, + ), we

are simply referring to the interval that starts at b and continues indefinitely to the right. We

never refer to as an endpoint, and we never write [, +]. The interval (, + ) is the entire

real number line. Note that an endpoint of a line graph in Table 1 has a square bracket through

it if the endpoint is included in the interval; a parenthesis through an endpoint indicates that it is

not included.

Table 1

Recall that to form a Cartesian or rectangular coordinate system, we select two real number

lines one horizontal and one vertical and let them cross through their origins as indicated in

Figure 1.Up and to the right are the usual choices for the positive directions. These two number

lines are called the horizontal axis and the vertical axis, or, together, the coordinate axes.

The horizontal axis is usually referred to as the x axis and the vertical axis as the y axis, and

each is labeled accordingly. The coordinate axes divide the plane into four parts called

quadrants, which are numbered counterclockwise from I to IV.

Figure 1

Now we want to assign coordinates to each point in the plane. Given an arbitrary point P in the

plane, pass horizontal and vertical lines through the point (Fig. 1). The vertical line will intersect

the horizontal axis at a point with coordinate a, and the horizontal line will intersect the vertical

axis at a point with coordinate b. These two numbers, written as the ordered pair (a, b) form

the coordinates of the point P. The first coordinate, a, is called the abscissa of P; the second

coordinate, b, is called the ordinate of P. The abscissa of Q in Figure 1 is -5 and the ordinate

of Q is 5.The coordinates of a point can also be referenced in terms of the axis labels. The x

coordinate of R in Figure 1 is 10, and the y coordinate of R is -10. The point with coordinates

(0, 0) is called the origin.

III RELATION and FUNCTIONS

A Relation is a set of ordered pairs of mathematical quantities. The domain of a relation is the

set of first coordinates of the ordered pairs of that relation. The range of a relation is the set of

second coordinates of the ordered pairs of that relation.

A Function is a correspondence between two sets of elements such that to each element in

the first set, there corresponds one and only one element in the second set. The first set is

called the domain, and the set of corresponding elements in the second set is called the range.

Vertical-Line Test for a Function

An equation specifies a function if each vertical line in the coordinate system passes through,

at most, one point on the graph of the equation. If any vertical line passes through two or more

points on the graph of an equation, then the equation is a relation.

To find the domain of a function, solve for y in terms of x.

To find the range of a function, solve for x in terms of y.

Example: Find the domain and range of each of the following functions

1

(a) =

(b) = 2

3

Solve for y in terms of x.

1

= =

3

Note that 3 0, since if the denominator is 0 it will make the function

undefined. Thus, 3. Therefore, the domain of () is the set of all real

numbers except 3.

Domain: = {}

Find the range of :

Solve for x in terms of y.

1

3

3 = 1

3 = 1

= 1 + 3

1 + 3

=

Note that the denominator should not be zero, hence, 0. Therefore, the

range of () is the set of all real numbers except 0.

Range: = {}

=

Solve for y in terms of x.

== 2

Note that values of a square root should be greater than or equal to 0. Thus,

2 0 which implies that 2. Therefore, the domain of () is the set of

positive numbers greater than or equal to 2.

Domain: = [, +)

Find the range of ():

Solve for x in terms of y.

= 2

2

2 = 2

2 = 2

= 2 + 2

The values of are all real numbers. Therefore, the range of is the set of

all real numbers.

Range: =

EXERCISES:

Find the domain and range of the following functions:

1. = 2 + 1

3. =

2.

4. =

3

+4

2

+9

V EVALUATION OF FUNCTIONS

It is often convenient to represent a functional relationship by an equation = (), and in this

context, and are variables. In particular, since the numerical value of is determined by

that of , we refer to as the dependent variable and to as the independent variable. To

evaluate a function, just substitute the value of the independent variable to the equation of the

function.

EXAMPLES:

1. Find (3) if = 2 + 4.

Solution: 3 = 3 2 + 4 = 13.

1

Solution:

Rewrite the function as = 2. Then

27 = 27 2 = 25 = 5.

5 = 52 = 3

and

1 = 1 2 = 1

is undefined, since negative numbers do not have real square roots.

APPLICATION TO BUSINESS

Example: Suppose the total cost in dollars of manufacturing units of a certain commodity is

given by the function = 3 302 500 + 200.

(a) Compute the cost of manufacturing 10 units of the commodity.

(b) Compute the cost of manufacturing 10 th unit of the commodity.

Solution: (a) The cost of manufacturing 10 units is the value of the total cost function when

= 10. That is,

Cost of 10 units = (10)

= 103 30 10 2 + 500 10 + 200 = 3,200

Thus, the cost of manufacturing 10 units of the commodity is 3,200 dollars.

(c) The cost of manufacturing of the 10 th unit is the difference between the cost of

manufacturing 10 units and the cost of manufacturing 9 units. That is,

Cost of 10th unit = 10 9 = 3,200 2,999 = 201

Thus, the cost of manufacturing 10 th unit of the commodity is 201dollars.

EXERCISES:

1. Suppose the total cost in dollars of manufacturing units of a certain commodity is

given by the function = 3 302 + 400 + 500.

(a) Compute the cost of manufacturing 20 units.

(b) Compute the cost of manufacturing 20 th unit.

2. At a certain factory, the total cost of manufacturing units during the daily production

run is = 2 + + 900 pesos. On a typical workday, = 25 units are

manufactured during the first hours of a production run.

(a) What is the domain of the function ?

(b) Express the total manufacturing cost as a function of .

(c) How much will have been spent on production by the end of the third hour?

(d) When will the total manufacturing cost reach 11,000 pesos?

VI TYPES OF FUNCTIONS

All functions are classified as either algebraic or transcendental. The algebraic functions are

polynomial functions such as rational and irrational functions. The elementary transcendental

functions are trigonometric and inverse functions, exponential and logarithmic functions.

Some Types of Algebraic Functions

1. Linear Functions

2. Absolute Value Function

3. Greatest Integer Function

4. Signum Function

5. Quadratic Function

BREAK- EVEN ANALYSIS

Businessmen are always concerned with the problems of the following nature: How

many items should be sold in a week to make a profit or to stay in business? What should the

price of an item be to break even ( no gain or loss) or to make some profit from such

investment?

If the revenue from sales exceeds the cost of production, then the business is running

at a profit; if the revenue equals the cost production, then the company neither gains nor

loss, it breaks even; and if the cost of production exceeds the revenue, then the business

operating is at loss.

A. THE PRODUCTION COST FUNCTION

The total production cost equals the variable cost plus the fixed cost. Thus,

= +

where the variable cost is the slope of the cost function and the fixed cost is considered

as the overhead cost.

B. THE REVENUE FUNCTION

The total revenue function of any function () of the number of units of the product it

sells. The total revenue function is given by

=

where is the number of units sold and is the selling price.

C. THE PROFIT FUNCTION

Let () be the cost function and () the revenue function of certain company. Then

its profit function () is given by

Profit = Revenue Cost

= ()

To break-even means the cost is equal to the revenue thus, = ().

The marginal profit is the slope of the profit function which is equal to 150.

D. CONSUMPTION AND SAVING FUNCTIONS

The relationship between consumption and disposable income is expressed as

= = +

Where

C = consumption

= disposable income

= autonomous or basic consumption

= marginal propensity to consume

Note that consumption depends on income; autonomous or basic consumption

indicates the level of consumption when = 0; the marginal propensity to consume

measures the change in consumption with respect to a unit change in income or it is the

slope of the consumption curve.

Similarly, saving depends upon income. Thus saving, , is also a function of income .

That is,

= +

Basically, consumption refers to the amount spent by households on goods and

services whereas investment refers to domestic spending by business on capital goods

in addition to inventories, and construction.

Consumption + Saving = Consumption + Investment

Saving = Investment

At an equilibrium level the income derived by production is either spent or saved by

households. That is,

Income = Consumption + Saving

EXAMPLE 1:

Suppose that a company has a fixed cost equal to P10,000 and has a variable cost of P50 per

unit which depends upon sales volume. If the company sells the product for P150.00 per unit,

find

a. The total cost function.

b. The total cost when the company sells 100 units.

c. The total revenue function.

d. The total revenue when the company sells 100 units.

e. The profit when the company sells 100 units.

f. Find the break-even point.

SOLUTION:

Let = the number of units made or sold

= the selling price

P 50.00 = the variable cost per unit

P10,000.00 = the fixed cost (overhead cost)

P 150.00 = the selling price

100 units = total number of units made and sold

a. The total cost function ():

() = (variable cost per unit)(no. of units made) + fixed cost

() = P50.00 x + P10,000.00

b. The total cost when 100 units are made:

() = ? when x = 100

100 = P50.00 100 + P10,000.00

100 = P5,000.00 + P10,000.00

100 = P15,000.00

c. The total revenue function ():

= selling price number of units sold

=

= 150

d. The total revenue for the sales of 100 units

= 150

100 = 150 100

100 = 15,000.00

e. Profit when the company sells 100 units

= ()

100 = 100 100

100 = 15,000 15,000

100 = 0, the company neither gains nor losses.

f.

Break-even point

To break-even means = :

=

150 = 50 + 10,000

150 50 = 10,000

50 = 10,000

= 200 units

We substitute = 200 into () or () to find the break-even point. We have

= 150

200 = 30,000

Hence, the break-even point occurs at (200, P30,000).

EXAMPLE 2:

Suppose that the consumption function is given by = 80 + 0.48 where C is the aggregate

consumption and is disposable income (in billions of pesos).

a. What is aggregate consumption when disposable income (in billions of pesos).

b. When disposable income is P10 billion, what proportion of it is consumed?

Solution:

a. If = 20billion, then

= 80 + 0.48

= 80 + 0.48 20

= 89.6

Thus, aggregate consumption is 89.6 billion pesos when disposable income is P20 billion.

b. The proportion of disposable income that is consumed id 0.48 for any level of

disposable income. That is, if = 10billion, then

= 80 + 0.48

= 80 + 0.48 10

= 84.8

Thus aggregate consumption is P4.8 billion [0.48(10) =4.8] when disposable income is

4.8

P10 billion, which is 84.8 0.057 of aggregate consumption.

EXERCISES:

1. Suppose the fixed cost of production for a certain commodity is P10,000 and the

variable cost is P85.00 per unit. Determine the production cost function. How much is

the cost of production when 1,000 units are made?

2. The cost of producing x units of a product is = 500 2 + 180,000. The revenue

from selling x units is = 800 2 + 1,000. Find the profit function (). Compute

the profit when 1,000 units are sold.

3. Suppose JunComs Enterprises is selling a new line of product for P350.00. It costs

P200.00 to produce a unit with an overhead cost of P56,250 per day.

a. Find the production cost function and the revenue function.

b. Find the break-even point.

c. Suppose the company sells 500 units a day, find the average daily profit.

d. Find the marginal profit if the company sells 501 st unit.

4. It is estimated by the Flors Peanut Butter Shop that the cost of making x glasses of

peanut butter a day is given by = 0.5 + 4,500. If an average of 150 glasses can

be sold a day, what should be the price of a glass of peanut butter to break-even?

5. A Shop & Eat Restaurant makes siopaos and has a daily overhead of P1,500. If costs

P10.00 to make a siopao which sells for P15.00.

a. Find the cost function () and revenue function ().

b. Find the break-even point.

c. If 100 siopaos are sold a day, is the restaurant operating with a profit?

6. Brad Pitt estimates that the cost of manufacturing a certain product for a day is

= 100 2 20,000. If an average of 8,000 units must be sold a day, what should be

the price of the product?

7. Suppose that the consumption function C is given by = 100 + 0.68

Where C is the aggregate consumption and is disposable income in billions of pesos.

a. Find the amount

i. Consumed when disposable income is P250 billion?

ii. Saved when disposable income is P250 billion?

iii. Consumed when disposable income is zero?

b. Find the marginal property to consume?

c. Express the saving S as a function of disposable income .

d. If investment is P100 billion determine the equilibrium level of disposable income.

References:

Comandante, F.L., Calculus For Business and Economics

Hoffman,L., et.al., Calculus for business, economics, and the social and life sciences

Gordon, W., Applied Calculus for business, economics and finance

Barnett, et.al., Calculus for business, economics, life sciences and social sciences

- daily lesson logUploaded byreina_reyes_18
- Tutorial Truss 26 Mar 2015Uploaded bygeng5514
- Cfo10e Ch01 GeUploaded byAngelicaG.Rillon
- grade 5 unit 7 parent letter 1Uploaded byapi-445934958
- TEST 1Uploaded byWan Malina Abdullah
- Saa_Mock3Uploaded byEjaz Khan
- Chapter - 6- Mfr. ProcessUploaded byStorm Wind
- Session 1 IntroductionUploaded byLeann Taguilaso
- Costing Princples and Business Control Systems (Assessement Criteria 1.1)Uploaded byasus130183
- TIME CollectedUploaded byAlan Brett
- CFO10e_ch01macro1Uploaded byThalia Sanders
- 3623_1343306960Uploaded byGear Arellano II
- TEXAS NINTH GRADE END OF COURSE TEST PREPARATION Solving Inequalities With Variables on Both SidesUploaded bygebramath
- Business Plan TemplateUploaded byrupertenberg
- 1. Intro to Coordinate PlaneUploaded byavijitcu2007
- session3_2014Uploaded byY.K. Chen
- LECTURE 2Uploaded byMuhammed Sulfeek
- Check FiguresUploaded byDeo
- Modelling Tutorial - SimpleHouse.pdfUploaded byJorge Cal
- 5 Lecture 3Uploaded bysolomon
- Summary of Ch-5 and 6Uploaded byRajib Ahmed
- Worksheet Final 1Uploaded byMatthew Lasap
- scholars challenge3 - jia maUploaded byapi-441632849
- 6-Moments Couples and Force Couple Systems_Partb.pptUploaded byLevi Pogi
- Pier Axis Definition in ETABSUploaded bykiruba
- Salmon GeorgeUploaded byMenab Ali
- Lecture6 Transformations of GraphsUploaded bymarchelo_chelo
- CNC Milling programing guide.pdfUploaded bySơn Đặng
- PaperUploaded byPaartiban Paneerselvam
- Creating Coordination Curves with Excel.pdfUploaded byRoberto Maurício

- Educ 6 Report ListUploaded byAl Binn
- Educ 6 QuizUploaded byAl Binn
- MATH 6.5 Quiz 3Uploaded byAl Binn
- k Wentong StatsUploaded byAl Binn
- Activity 1 - Important TermsUploaded byAl Binn
- Quiz Parabola and CircleUploaded byAl Binn
- ProgramUploaded byAl Binn
- 1st Long QuizUploaded byAl Binn
- Quiz FactoringUploaded byAl Binn
- RangesUploaded byAl Binn
- Math 6.5 PrelimUploaded byAl Binn
- Activity 2 - Sampling and Sources of DataUploaded byAl Binn
- BSS Meeting Minutes 4.14.16Uploaded byAl Binn
- Quiz 2.docxUploaded byAl Binn
- Quiz 2.docxUploaded byAl Binn
- Formula Sheet GeometryUploaded bykenneth_fv
- AnovaUploaded byBliss Man
- Math 9.2 Problems CompilationUploaded byAl Binn
- 3-2GradingUploaded byJohny Villanueva
- HUMANITIES 1 Prelim ExamUploaded byAl Binn
- The Scientific Basis for the Art of TeachingUploaded byAl Binn
- Solid Mensuration FinalsUploaded byAl Binn
- SculptureUploaded byAl Binn
- How to Select Inferential StatsUploaded byAl Binn
- Organizational LearningUploaded byAl Binn
- RubricsUploaded byAl Binn
- Math 2 Quiz 1Uploaded byAl Binn
- How to Create RubricsUploaded bySylvaen Wsw
- Student Learning in Diverse ClassroomsUploaded byAl Binn

- China's Emerging Travel MarketUploaded byChina Business Review
- Calculation of ESI & PF - Accounts Experts - Chartered Accountants India,Taxpayers, CA India, CWA ,ICAI, Company Secretary ,CS, Cost Accountants, MBA, Finance ProfessionalsUploaded byR.Gowri Sankar Raja
- MBA SyllabusUploaded byNag28raj
- Vakif Bddk Solo Eng 31032015Uploaded bySiddharth Shekhar
- Hni and Individual InvestorsUploaded byjagrutic_09
- Feminisation of Agriculture, Out-migration and New Gender Roles - F. SugdenUploaded byADBGAD
- Sample 1 Proposal Bus With Finance-3Uploaded byMohammad Anisuzzaman
- Strategy Facility PlanningUploaded byIbrahim Orhanli
- Final Transaction BankUploaded byAsif Bashir
- The 80_20 IndividualUploaded byGlen Lougheed
- Section Wise - Income Tax DeductionsUploaded byCaCs Piyush Sarupria
- 2011 Merenje Performansi - Savremeni KonceptiUploaded byAV
- 2015 NatfoodUploaded byTony Peterz Kurewa
- Artiman Ventures - Investment StrategyUploaded byartimanventures
- Kotak BankUploaded byPrince Yadav
- Financial ManagementUploaded bymshashi5
- Practical Elliott Wave Trading StrategiesUploaded byGeorge Akrivos
- 1600 FinalUploaded byReese Quines
- Admission of a PartnerUploaded bysuraj sharma 222
- 14Uploaded byGulpe Alexei
- Game Plans for POst-GATT EraUploaded bysubbarao17
- Nestle Edition 4 FullUploaded byImelda Wong
- Financial PlanUploaded byPaavni Sharma
- Wal Mart FinanceUploaded byAli Fiz Ah
- Costing Theory & Formulas & ShortcutsUploaded bySaibhumi
- Problems and Prospects of Bangladesh Capital Market (SHARE)Uploaded byFerdous Mostofa
- PAPC SYLLABUSUploaded byZahid Hassan
- International Business Theory and Practice Week 3Uploaded byYueniese Liang Sunbae
- SENATE HEARING, 112TH CONGRESS - DEPARTMENT OF THE INTERIOR, ENVIRONMENT, AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2012Uploaded byScribd Government Docs
- Cost Time AnalysisUploaded byruksar