TOMOLIN, Jewel T.

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BUSANA2 Incentive

Over the years, decision making, most especially in the business realm has become more
and more mathematically inclined (Bittinger, 2015). With the huge masses of statistical data,
depending on hundreds or even thousands of different variables, analysts and economists have
found aid in using various mathematical methods to help in terms of predicting, decision making,
and setting alternative courses of action from different possibilities. Among the mathematical
methods employed is Calculus.

Derivatives by definition, are used to show the rate of change of variables in response to
other variables. To simply put it, a derivative is a numerical value that says what the rate of
change of a function is for a certain input. The action of finding a derivative is called
differentiation. Differentiation is a process that takes a formula for a function and derives a
formula for another function, the derivative, that allows to find the slope of a tangent line to a
curve at a point. Given this, derivatives may be used in various ways. They can be used to
determine maximum profit, minimum cost, rate of change of cost, and how to maximize or
minimize profit/cost/production. It is mentioned that Calculus is used by economists and
analysts. In this instance, it can be applied when they are looking to determine the most
opportune time to buy or sell good or when considering the effects of price on how much
consumers purchase.

References

"Applications of Calculus." WyzAnt Tutoring. N.p., n.d. Web. 15 Sept. 2013.

http://www.wyzant.com/help/math/calculus/introduction/applications_of_calculus
"Application of Calculus in Commerce and Economics." Application of Calculus in Commerce
and Economics. Optional II, n.d. Web. 15 S
ept.2013.<http://download.nos.org/srsec311new/L.No.41.pdf
Bittinger, M. L., Ellenbogen, D. J., & Surgent, S. J. (2015). Calculus and its applications. Pearson
Higher Ed.
https://limitlesscalculus.com/derivatives/differentiation-rules-calculus-for-business.html