COURSE SYLLABUS OUTLINE

Course Code and Title: AEP 221 (T) Business Mathematics (Theory)
No. of Credits: 3
Name of the Department: Agricultural Economics and Policy
Name of the University: Sylhet Agricultural University
Session: July-December/2018

Instructor’s Full Name: Kanij Fatema

Contact Info: email: f7kanij@yahoo.com
Cell No. : 01723502290 ( Please contact between 10am to 8pm)

Rationale:
The course aims to demonstrate the importance of the use of mathematical techniques in theoretical
economics enable the student to develop skills in mathematical modelling. This course covers
fundamental elements of mathematical economics. The course is designed to teach the
mathematical tools that student will need to solve economic problems. In addition it applies these
tools to solve basic economic problems. This course presents the mathematics required for studying
economics. Mathematical concepts are developed in the context of economics and applications are
drawn from a wide range of fields in economics including microeconomics, macroeconomics,
economics growth, and environmental economics. The main focus of this course is on optimization
(constrained and unconstrained, Lagrange-Multiplier methods), matrix and determinants,
differentiation and integration, and input-output analysis. At the end of this course, and having
completed the essential reading and activities, student should be able to: use and explain the
underlying principles, terminology, methods, techniques and conventions used in the subject solve
economic problems using the mathematical methods described in the subject.

Learning Objectives: To provide students -

1. An introduction to mathematical analysis with applications in economics and
econometrics.
2. An initial understanding of how to frame economic modeling ideas in mathematical
format.
3. Extensive instruction on applications of a wide range of mathematical techniques to
solve economic problems.
4. How to apply mathematical techniques to problems in microeconomic theory
5. Critical thinking, and problem-solving, empirical research and model building
capabilities.

Prerequisites: Basic secondary and higher secondary knowledge on mathematics. Principles of

economics and Microeconomics I course need to be done by the students.
Course Outline
Week Lecture Topics
No.

1. 1. Introductory discussion
Definition of Mathematics, Business mathematics , importance, features, advantages.
Learn the meaning of mathematical economics and econometrics and difference
2.
between them. Understand the difference between mathematical and non-
mathematical economics
Function, Equation, Variables : Explain number and sets. Learn meaning and
3
importance of mathematical representation of economic models and its ingredients.

Revenue cost and profit: Illustrate the relationship between average revenue and
4.
2. marginal revenue- relationship between average cost and marginal Cost.
5. Exercise on Revenue cost and profit
Supply and demand analysis: Identify variables, sketch curves and graphs.
6
Determining equilibrium price and quantity

7. Exercise on Supply and demand analysis

3. Elasticity: demand elasticity, supply elasticity, price elasticity, income elasticity, cross
8.
elasticity
9 Calculate elasticity

4. 10. Marginal Function: TC, MC, TR, MR, MP, marginal productivity.
11. Calculate marginal productivity, determine MR, MC and Profit.
12 Consumer surplus and producer surplus

5. 13. Differentiation, Integration basics

Learn derivatives and its rules. Understand partial and total derivatives. Learn the
14.
differential conditions. Understand how to use derivatives in economics
15 Differentiation of one variable function

6. 16. Exercise on Differentiation of one variable function

17. Overview and Practice problems
18. Maximisation and minimisation rules

7. 19 Profit maximisation practise problems

20. Cost minimisation practice problems
21. Exercise on profit analysis
 8. Integration: Learn integration and its rules. Understand the properties of definite and
22.
indefinite integral. Explain the economic application of integration
23. Indefinite integration: finding TC & TR from MC & MR. MPS and MPC.
24. Definite integration: CS, PS, sketch graphs

9. 25. Integral Calculas

26. Unconstrained optimization
27. Constrained optimization

10. 28. Production Function: Cobb-douglas production function

29. Langrangian multipliers: steps and exercise. Formulate a constrained optimization
problem, decide whether you could use the Lagrange method to solve the problem,
use the Lagrange method to solve the problem, when this is possible, discuss the
economic interpretation of the Lagrange multipliers
30. Matrix, vectors, and its operation. Understand different laws of matrix. Explain
determinants, its characteristics and rules

11. 31. National Income determination

Input-output analysis: Understand the structure of input-output model. Explain the
32.
application of input-output analysis in economics
33 Overview of classes

Course Resources:

References:
Black, J. and Brodley, J.F. 1980.Essential Mathematics for Economists. 2nd edn. John Wiley and
Sons. New York.
Henderson, J.M. and Quandt, R.E. 1971. Microeconomic theory: A Mathematical Approach. 2nd
edn. McGraw-Hill Book Company Inc. (latest edition).

Mabbett, A.J. 1986. Work-out Mathematics for Economists. Macmillan. London.

Rosser, Mike 1993. Basic Mathematics for Economists. http://www.railassociation.ir/Download/

Article/Books/Basic%20Mathematics%20for%20Economists.pdf

Teaching strategy: Lectures, interactive group discussions and presentations.

Assessment strategy: MCQ, Quiz, Midterms and Final written examination.

Grading Procedure:
Class participation 10
First Midterms 8
Assignment/quiz 4
Second Midterms 8
Final Exam 70
Total 100
Grading Scale:
Grade Percent Grade Point
A+ 80 to above 4.0
A 75-79 3.75
A- 70-74 3.5
B+ 65-69 3.25
B 60-64 3.0
B- 55-59 2.75
C+ 50-54 2.5
F Below 50 0

Academic Honesty: A university is based on honesty and integrity. Cheating, or any forms of
academic dishonesty are not acceptable. Assignment should be done by student himself or
according to course teacher’s instructions and submit in due time.

Conduct in the classroom: Students must attain midterms in scheduled time, if any student unable
to attain the exam there is no second chance. Mobile phone must be turned off or put in silent
mode. If any student miss my lecture or find any difficulties then he or she can contact with me in
my chamber directly at office hour (subject to making an appointment). I will provide lecture
handouts or book reference.

This outline is subject to change.