ADP Business Mathematics

Objective

1. Break-even point is when TR = TC

2. The formula of TR is TR= P*Q
3. TC = TFC + TVC
4. The graph of quadratic function is Parabola
5. Marginal cost is derivative of total cost function with respect to quantity.
6. The slope of demand function is found by: Change in price/change in quantity
7. As Qs = a + bp, here Qs is Dependent variable
8. Endogenous variables are the variables whose value is defined within the function. And
Exogenous variables are the variables whose value is determined from outside the function.
9. Marginal cost show, change in cost due to Additional unit
10. Formula to find future value and present value:
Present Value Formula Future Value formula
PV = FV/(1+i)n FV= PV (1+i)n
Where i = interest rate
N = Number of years

Note: if interest rate is compounded annually i.e. for 10 years, then n=10.
While if interest rate is to be compounded monthly then n = 10 * 12
And if interest rate is to be compound quarterly then n = 10 * 4

11. In augmented matrix, the numbers on left side of solid line form
Co-efficient matrix
12. Gauss- Jordan elimination method in matrix is performed only on
Rows
13. In Guass- Jordan Elimination method, basic matrix is converted into Identity matrix.
14. A-1 = {1/ (ad-bc)} * {Adj of A}
15. If determinant of matrix is zero, it implies that no solution exists.
16. Gross production matrix for economy consisting values a, b and c is shown in form of

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Column Matrix

17. Technological equation for and open Leontief model is (1 – A) X = D

18. In case of closed Leontief model, formula is (1 – A) X = 0
19. In closed Leontief model, all inputs and outputs are
Endogenously determined (or Within system)
20. D is zero in case of closed Leontief model, beacuause there is no surplus.
21. In scalar multiplication, scalar is multiplied with each Element

22. If Determinant of a matrix is equal to zero, then it is called singular matrix. Otherwise non-
singular.
23. Any point in region determined by constraints, in case of inequalities, is called
Feasible region
24. If in pivot column, there is no positive co-efficient in the respective column, then it implies that
there exist No solution
25. Pivot column is identified by ? most negative value of objective function
26. The columns with 1-0 form are called ---------and columns with non- one zero form are called---
-------
Basic and non-basic variables
27. The entry in both pivot column and pivot row is called Pivot entry
28. Duality implies that we can reach at single solution via two methods
29. The simplex method has one limitation that
it deals only with maxima functions
30. To find minimum and maximum value of function, the solution region points are entered into
Objective function
31. One objective function with 2 or 3 constraints is basically problem of
Linear Programming
32. Any point that satisfies the given constraints comes in ? Solution or feasible region
33. If some constraints are for at least value and some constraints are for maximum value, then this
is related to Mixed constraints
34. In case of mixed constraint, simplex method applies to

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Doesn’t applies to dual problem

35. Simplex method is used to
Solve Various different types of standard linear programming problems

36. The smallest negative quotient in pivot column highlights toward Pivot entry.
37. The slack variables are introdueced in simplex method to include
Unused land, Labor, Capital or resources
38. If there is no negative entry in objective function, it implies that
There exist multiple solutions.
39. For solving minimization problem via Simplex method, the minima problem is converted into
maxima problem by taking Transpose of basic matrix.
40. Growth is limited in case of Gompertz Curves
41. Family of curves used to describe human growth and development are
Gompertz Curves
42. N = CaRt is formula of Gompertz Curve. Where T is time, C is maximum possible individuals
and N is number of individuals at given time.
43. If growth function goes on to continue indefinitely, then Logistics functions are employed.
44. To model the growth of business, which kind of exponential functions are employed?
Growth Exponents
45. Exponential Decay function has the form y = a-x
46. Exponential decay functions have economic applications for showing effect of
Inflation on purchasing power; new advertisement effect on sale and DMU
47. In function, Y = ex, ‘e’ is a fixed irrational number.
48. Logarithm with base 10 are called ‘Common logarithm’ and Logarithm with base e are called
‘Natural logarithm.’
49. Change of base formula from base b to base a is y = logax / logab
50. For base e: logbx = lnx/ ln b