Allied 2 Business Mathematics II Sem

STUDY MATERIAL FOR BBA
BUSINESS MATHEMATICS
SEMESTER – II, ACADEMIC YEAR 2022-2023
Unit I
Analytical Geometry
Analytic geometry, also called coordinate geometry, mathematical subject in which

algebraic symbolismand methods are used to represent and solve problems in geometry. -he
importance of analytic geometry is that it establishes a correspondence between geometric
curves and algebraic equations.
Distance between 2 Points Formula
Consider two points A (x1, y1) and B(x2, y2) on the given coordinate axis. The distance
between these points is given as:
MN= √(x2 – x1)2 + (y2 – y1)2
The distance from origin to any point in the plane is calculated as
OM= √ x12 + y12
Problem
1. Find the distance between two points A(7, 13) and B(10, 9)
Given:
Two points are A(7, 13) = (x1, y1) and B(10, 9) = (x2, y2).
The formula to calculate the distance between two points is:
AB = √[(x2-x1)2 + (y2-y1)2]
Now, substitute the values in the formula, we get

AB = √[(10-7)2 + (9-13)2]
AB = √[(3)2+ (-4)2]
AB = √(9+16) = √25
AB = 5
Hence, the distance between two points A(7, 13) and B(10, 9) is 5.
Slope
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The slope of a line is the measure of the steepness and the direction of the line.
Finding the slope of lines in a coordinate plane can help in predicting whether the lines are
parallel, perpendicular, or none without actually using a compass.
The slope of any line can be calculated using any two distinct points lying on the line.
The slope of a line formula calculates the ratio of the "vertical change" to the "horizontal
change" between two distinct points on a line. In this article, we will understand the method
to find the slope and its applications.
What is Slope?
The slope of a line is defined as the change in y coordinate with respect to the change
in x coordinate of that line.
if P(x1,y1) and Q(x2,y2) are the two points on a straight line, then the slope formula is given
by:
Slope, m = Change in y-coordinates/Change in x-coordinates

m = (y2 – y1)/(x2 – x1)
Problem
1. Find the slope of a line between the points P = (0, –1) and Q = (4,1).
Solution:
Given, the points P = (0, –1) and Q = (4,1).
As per the slope formula,
Slope of a line, m = (y2 – y1)/(x2 – x1)
m = (1-(-1))/(4-0) = 2/4 = ½
Equation of Straight Line
The equation of a straight line is a mathematical equation that gives the relation
between the coordinate points lying on that straight line. It can be written in different forms
and tells the slope, x-intercept, and y-intercept of the line. The most commonly used forms of
the equation of straight line are y = mx + c and ax + by = c. Some other forms are point-slope
form, slope-intercept form, general form, standard form, etc.
Equation of Straight Line Formula
A straight line is a figure formed when two points A (x1, y1) and B (x2, y2) are
connected with minimum distance between them, and both the ends extended to infinity. The
standard form of a linear equation with variables x and y is:
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ax + by = c, where a, b, c are constants and x, y are variables.
Equation of Straight Line
Standard form: ax + by = c
Slope intercept form: y= mx + c
Point slope form: y – y1 = m (x – x1)
Problem
1. Find the equation of a straight line that passes through the points (1, 3) and (-2, 4).
Solution: To determine the equation of the line, we will use the formula point-slope form.
For this, we first need to find the slope of the line.
Slope = (4-3)/(-2-1) = -1/3
Therefore, the equation of the line passing through (1, 3) and (-2, 4) is y - 4 = (-1/3) (x + 2)
⇒ y - 4 = -x/3 - 2/3
⇒ y + x/3 = 4 - 2/3
⇒ x + 3y = 10
Answer: The required equation is x + 3y = 10.
Point of intersection
Point of intersection is the point where two lines or two curves meet each other. The
point of intersection of two lines of two curves is a point. If two planes meet each other then
the point of intersection is a line. More precisely it is defined as the common point of both the
lines and curves that satisfy both the curves which can be derived by solving the equation of
the curves.
The formula of the point of Intersection of two lines is:
(x, y) = ((b1*c2−b2*c1)/(a1*b2−a2*b1), (c1*a2−c2*a1)/(a1*b2−a2*b1))

Problem
1. Find the point of intersection of line 3x + 4y + 5 = 0, 2x + 5y +7 = 0.
Solution:
The point of intersection of two lines is given by :
(x, y) = ((b1*c2−b2*c1)/(a1*b2−a2*b1), (c1*a2−c2*a1)/(a1*b2−a2*b1))
a1 = 3, b1 = 4, c1 = 5
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a2 = 2, b2 = 5, c2 = 7
(x,y) = ((28-25)/(15-8), (10-21)/(15-8))
(x,y) = (3/7,-11/7)
Demand and supply curves
Each combination of price and quantity demanded lies on the curve. In this case the
curve is linear—it is a straight line. The demand curve slopes downward (technically we say
that its slope is negative), reflecting the fact that buyers wish to purchase more when the price
is less.
Measuring price & quantity
The demand curve is a graphical expression of the relationship between price and quantity
demanded, with other influences remaining unchanged.
The supply curve is a graphical representation of the relationship between price and quantity
supplied, holding other things constant. The supply curve but has a positive slope indicating
that suppliers wish to supply more at higher prices.
The supply curve is a graphical expression of the relationship between price and quantity
supplied, with other influences remaining unchanged.
Supply, demand, equilibrium
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The demand and supply curves intersect at point E0, corresponding to a price of $4 which, as
illustrated above, is the equilibrium price for this market. At any price below this the
horizontal distance between the supply and demand curves represents excess demand,
because demand exceeds supply. Conversely, at any price above $4 there is an excess supply
that is again measured by the horizontal distance between the two curves. Market forces tend
to eliminate excess demand and excess supply as we explained above. In the final section of
the chapter we illustrate how the supply and demand curves can be 'solved' for the
equilibrium price and quantity.
Problem
1. The demand for a product is 120 units, when the price is Rs.20 per unit. When the
price decreased to Rs. 1.5 per unit the quantity demanded is 200 units. Find the
equation to the demand curve. Assume that the demand curve is linear form.
Solution:
Let x be the quantity demanded and y be the price.
X1 = 120, X2 = 200, Y1 = 20, Y2 = 15
The equation for the linear demand curve is
(y – y1)/(y2 – y1) = (x– x1)/(x2 – x1)
y – 20 / 15 – 20 = x-120 / 200 – 120
-5 (x -120) = 80 (y – 20)
-5x + 600 = 80y – 1600
5x + 80y = 2200 or 5x + 80y-2200 = 0
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Break-Even Analysis
Basically, a business will want to use a break-even analysis anytime it considers

adding costs. These additional costs could come from starting a business, a merger or
acquisition, adding or deleting products from the product mix, or adding locations or
employees.
In other words, you should use a break-even analysis to determine the risk and value of any
business investment, especially when one of these three events occurs:
1. Expanding a business
Break-even points (BEP) will help business owners/CFOs get a reality check on how
long it will take an investment to become profitable. For example, calculating or modeling
the minimum sales required to cover the costs of a new location or entering a new market.
2. Lowering pricing
Sometime businesses need to lower their pricing strategy to beat competitors in a

specific market segment or product. So, when lowering pricing, businesses need to figure out
how many more units they need to sell to offset or makeup a price decrease.
3. Narrowing down business scenarios
When making changes to the business, there are various scenarios and what-ifs on the
table that complicate decisions about which scenario to go with. BEP will help business
leaders reduce decision-making to a series of yes or no questions.
Formula
Break-even point = Fixed Cost / (Price per cost - Variable cost) = Fixed Cost / Gross
Profit Margin
Problem
1. Find the breakeven point if the fixed cost is Rs.48,000, variable cost is Rs.40,000 for a
sales of Rs.1, 00,000. Also calculate the profit if the sales of the company is Rs. 1,
50,000.
Variable expenses per rupees of sales = 40,000/ 1,00,000 = 0.4
The total cost equation is y = mx +c
Y = 0.4x + 48000
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Break even point = xe = c / 1- m
= 48000 / 1- 0.4 = 48000 / 0.6 = 80,000
Break even sales is Rs. 80,000
To calculate profit when sales is Rs. 1,50,000 the total cost equation may be applied.
Y = 0.4 x + 48000
Y = 0.4 (1,50,000) + 48000
= 60000 + 48000 = 108000
The total cost for a sales of Rs. 1,50,000 is Rs. 1,08000
Profit = sales – total cost
= 1,50,000 – 1,08,000
= Rs. 42,000
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Unit II
Set theory
Set theory is a branch of mathematical logic where we learn sets and their properties.
A set is a collection of objects or groups of objects. These objects are often called elements or
members of a set.
Definition of Sets
set is a well-defined collection of objects or people. Sets can be related to many real-
life examples, such as the number of rivers in India, number of colours in a rainbow, etc.
Types of Sets
The sets are further categorized into different types, based on elements or types of
elements. These different types of sets in basic set theory are:
 Finite set: The number of elements is finite

 Infinite set: The number of elements is infinite
 Empty set: It has no elements
 Singleton set: It has one only element
 Equal set: Two sets are equal if they have same elements
 Equivalent set: Two sets are equivalent if they have same number of elements
 Power set: A set of every possible subset.
 Universal set: Any set that contains all the sets under consideration.
 Subset: When all the elements of set A belong to set B, then A is subset of B
Set Operations
Union
The union of two sets is a set containing all elements that are in A or in B (possibly
both).For example, {1,2}∪{2,3}={1,2,3}.
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Intersection
The intersection of two sets A and B, denoted by A∩B, consists of all elements that
are both in A and B. For example, {1,2}∩{2,3}={2}.
Difference
The difference (subtraction) is defined as follows. The set A−B consists of elements
that are in A but not in B. For example if A={1,2,3} and B={3,5}, then A−B={1,2}.
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Complement
The complement of a set A, denoted by Ac or A¯, is the set of all elements that are
in the universal set S but are not in A.
De Morgans law
De Morgan’s Law is a collection of boolean algebra transformation rules that are used
to connect the intersection and union of sets using complements. De Morgan’s Law states
that two conditions must be met. These conditions are typically used to simplify complex
expressions. This makes performing calculations and solving complicated boolean
expressions easier.
According to De Morgan’s Law logic, the complement of the union of two sets is
equal to the intersection of their separate complements. Furthermore, the complement of two
sets intersecting is equal to the sum of their separate complements. Venn diagrams make it
simple to visualise these laws.
De Morgan’s Law: Definition
Set theory is an algorithm of set types and sets operations. For a better understanding
of the multiple set operations and their inter-relationship, De Morgan’s laws are the best tool.
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De Morgan’s Law describes the relationship between three fundamental operations of sets:
the complement of sets, the union of sets and the intersection of sets.
De Morgan’s Law states that the complement of the union of two sets is the
intersection of their complements, and also, the complement of intersection of two sets is the
union of their complements
In set theory,
(A ∪ B)’ = A’∩ B’
(A ∩ B)’ = A’ ∪ B’
Examples on De Morgans law :

1)Let U={1,2,3,4,5,6}, A={2,3} and B={3,4,5}. .
A∪B={2,3}∪{3,4,5}={2,3,4,5}
(A∪B)′={1,6}
Also, A′={1,4,5,6}
B′={1,2,6}
A′∩B′={1,4,5,6}∩{1,2,6}
={1,6}
Hence (A∪B)′=A′∩B′
Similarly it can be verified that (A∩B)′=A′∪B
Venn Diagrams
One tool that is helpful in depicting the relationship between different sets is called a Venn
diagram. A rectangle represents the universal set for our problem. Each set is represented with a
circle. If the circles overlap with one another, then this illustrates the intersection of our two sets.
Applications of Set Theory
Set theory is used throughout mathematics. It is used as a foundation for many subfields of
mathematics. In the areas pertaining to statistics, it is particularly used in probability. Much of the
concepts in probability are derived from the consequences of set theory. Indeed, one way to state
the axioms of probability involves set theory.
Cartesian Product of Sets
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The term ‘product‘ mathematically signifies the result obtained when two or more values
are multiplied together. For example, 45 is the product of 9 and 5. One must be familiar with the
basic operations on sets like Union and Intersection, which are performed on 2 or more sets.
Cartesian Product is also one such operation that is performed on two sets, which returns a set of
ordered pairs.
What is an Ordered Pair
An ordered pair is a pair of objects where one element is assigned first, and the other
element is assigned second, denoted by (a,b).
Cartesian product of Sets
A Cartesian product of two non-empty sets A and B is the set of all possible ordered pairs
where the first component of the pair is from A, and the second component of the pair is from B.
The set of ordered pairs thus obtained is denoted by A×B.
A × B = {(a, b) : a ∈ A and b ∈ B}
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Unit III
Differential Calculus
Differential calculus deals with the rate of change of one quantity with respect to another.
Or you can consider it as a study of rates of change of quantities. For example, velocity is the rate of
change of distance with respect to time in a particular direction. If f(x) is a function, then f'(x) =
dy/dx is the differential equation, where f’(x) is the derivative of the function, y is dependent
variable and x is an independent variable.
f'(x) = dy/dx ; x≠0
Calculus Definition
In mathematics, calculus is a branch that deals with finding the different properties of
integrals and derivatives of functions. It is based on the summation of the infinitesimal differences.
Calculus is the study of continuous change of a function or a rate of change of a function. It has two
major branches and those two fields are related to each other by the fundamental theorem of
calculus. The two different branches are:
 Differential calculus
 Integral Calculus
Derivatives
The fundamental tool of differential calculus is derivative. The derivative is used to show
the rate of change. It helps to show the amount by which the function is changing for a given point.
The derivative is called a slope. It measures the steepness of the graph of a function. It defines the
ratio of the change in the value of a function to the change in the independent variable.
Differentiation
In calculus, differentiation is one of the two important concepts apart from integration.
Differentiation is a method of finding the derivative of a function. Differentiation is a process, in
Maths, where we find the instantaneous rate of change in function based on one of its variables. The
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most common example is the rate change of displacement with respect to time, called velocity. The
opposite of finding a derivative is anti-differentiation.
Differentiation Formulas
The important Differentiation formulas are given below in the table. Here, let us
consider f(x) as a function and f'(x) is the derivative of the function.
 If f(x) = tan (x), then f'(x) = sec2x

 If f(x) = cos (x), then f'(x) = -sin x
 If f(x) = sin (x), then f'(x) = cos x
 If f(x) = ln(x), then f'(x) = 1/x
 If f(x) = ex, then f'(x) = ex
 If f(x) = xn, where n is any fraction or integer, then f'(x) = nxn-1
 If f(x) = k, where k is a constant, then f'(x) = 0
Standard form
Standard form is a way of writing down very large or very small numbers easily.
103 = 1000, so 4 × 103 = 4000 . So 4000 can be written as 4 × 10³ . This idea can be
used to write even larger numbers down easily in standard form.
Small numbers can also be written in standard form. However, instead of the
index being positive (in the above example, the index was 3), it will be negative. The
rules when writing a number in standard form is that first you write down a number
between 1 and 10, then you write × 10(to the power of a number).
Here we will convert expanded form into standard form of a number
The number written as sum of the place values of its digits is called the expanded
form of a number.
I. Write the following numbers in the standard form.
(i) 1,00,000 + 80,000 + 3,000 + 200 + 50 + 1
Answer:
(i) 183251
Standard SoP form
Standard SoP form means Standard Sum of Products form. In this form, each
product term need not contain all literals. So, the product terms may or may not be the
min terms. Therefore, the Standard SoP form is the simplified form of canonical SoP
form.
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We will get Standard SoP form of output variable in two steps.
 Get the canonical SoP form of output variable

 Simplify the above Boolean function, which is in canonical SoP form.
Follow the same procedure for other output variables also, if there is more than one
output variable. Sometimes, it may not possible to simplify the canonical SoP form. In
that case, both canonical and standard SoP forms are same.
Example
Convert the following Boolean function into Standard SoP form.
f = p’qr + pq’r + pqr’ + pqr
The given Boolean function is in canonical SoP form. Now, we have to simplify
this Boolean function in order to get standard SoP form.
Step 1 − Use the Boolean postulate, x + x = x. That means, the Logical OR operation
with any Boolean variable ‘n’ times will be equal to the same variable. So, we can write
the last term pqr two more times.
⇒ f = p’qr + pq’r + pqr’ + pqr + pqr + pqr
Step 2 − Use Distributive law for 1st and 4th terms, 2nd and 5th terms, 3rd and 6th
terms.
⇒ f = qrp′+p + prq′+q + pqr′+r
Step 3 − Use Boolean postulate, x + x’ = 1 for simplifying the terms present in each
parenthesis.
⇒ f = qr1 + pr1 + pq1
Step 4 − Use Boolean postulate, x.1 = x for simplifying above three terms.
⇒ f = qr + pr + pq
⇒ f = pq + qr + pr
This is the simplified Boolean function. Therefore, the standard SoP form corresponding
to given canonical SoP form is f = pq + qr + pr
Quotient Rule
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Quotient rule in calculus is a method used to find the derivative of any function
given in the form of a quotient obtained from the result of the division of two
differentiable functions. The quotient rule in words states that the derivative of a
quotient is equal to the ratio of the result obtained on the subtraction of the numerator
times the derivative of the denominator from the denominator times the derivative of the
numerator to the square of the denominator. That means if we are given a function of the
form: f(x) = u(x)/v(x), we can find the derivative of this function using the quotient rule
derivative as,
f'(x) = [u(x)/v(x)]' = [v(x) × u'(x) - u(x) × v'(x)]/[v(x)] 2
Function of a Function
Suppose we want to differentiate (2x -1)3. We could expand the bracket then
differentiate term by term, but this is tedious! We need a more direct method for
expressions of this kind.
Now (2x-1)3 is a cubic function of the linear function (2x -1), i.e. it is a function of a
function.
Other examples
(x2 - 3)3 is a cubic function of a quadratic function
is a square root function of a quartic function
There are 2 ways to think about solving functions of a function:
(i) Chain Rule
If we have y(x) = f (complicated expression), we let u = (complicated expression) then work
out and .
1. y = (2 - x3)4
let u = 2 - x3, so that y = u4
= 4u3 and = -3x2
So = (4u3).(-3x2) = -12x2(2 - x3)3
ii) Sequential Step Method
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With this method, we start with the outermost function, and differentiate our way to
the centre, multiplying everything together along the way.
Examples
1. y = (2 - x3)4
think of this as y = (expression)4
differentiating, dy/dx = 4(expression)3
We now look at the expression in the brackets and differentiate that (= -3x2) and multiply it
to our previous answer to give
= 4(2 - x3)3(-3x2) (which is the same as before)
Marginal Analysis
Marginal analysis is an examination of the additional benefits of an activity compared

to the additional costs incurred by that same activity. Companies use marginal analysis as a
decision-making tool to help them maximize their potential profits. Marginal refers to the
focus on the cost or benefit of the next unit or individual, for example, the cost to produce
one more widget or the profit earned by adding one more worker.
The Cost Function
The total cost of production of x number of products, represented by C(x), can be

written as –C(x) = F(x) + V(x)
Where, F(x) = The fixed cost, independent of the number of products being
manufactured. For eg – The salary paid by the company to its workers, the property rents and
the maintenance costs etc. could be independent of the number of items they produce in a
given month.
V(x) = The variable cost, which depends on the number of products being
manufactured. For eg – The cost of packaging and transportation of the manufactured goods,
which is obviously dependent on the number of goods produced.
The Average Cost per product (AC) = C(x)x
Average Fixed Cost per product (AFC) = F(x)x
Average Variable Cost per product (AVC) = V(x)x
The Marginal Cost
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The term marginal comes into play when we need to ascertain the increase in any
dependent variable with a unit change of the independent variable. Thus, we define the
marginal costs as –
If C(x) is the total cost of producing x units, then the change in the total cost if one
additional unit needs to be produced, at an output level of x units, is given by –
Marginal Cost = dC(x)dx
Similarly, we may calculate the marginal average costs as – d[AC(x)]dx,

d[AFC(x)]dx and so on.
The Revenue and the Profit Functions
Denoted by R(x), the revenue function represents the amount of money earned (the total
turnover) by a company, by selling x number of products. If the selling price of every unit is
equal to SP, the revenue function would be –
R(x) = SP × x
Now if the cost function and the revenue function for x products take on the value C(x) and
R(x) respectively, then we can write the profit function P(x) as –
P(x) = R(x) – C(x)
The Marginal Revenue and Marginal Profit
Similar to the definition of Marginal Cost, we can define the Marginal Revenue and the
Marginal Profit as follows –
 The rate of change of revenue per unit change in the output (number of products) is
the Marginal Revenue, given by dR(x)dx
 The rate of change of profit per unit change in the output (number of products) is the
Marginal Profit, given by dP(x)dx
The Consumption Functions and the Marginal Propensities
The Consumption function C(Y) relates the total consumption (or the total expenditure
incurred) C to the total income Y. We give the difference in the total income and the total
consumption as the Saving function S(Y).
Thus, we can define the following marginal propensities –
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 Marginal Propensity to Consume (MPC): It is the rate of change of the total

consumption per unit change in the income – dC(Y)dY
 Marginal Propensity to Save (MPS): It is the rate of change of the saving per unit
change in the income – dS(Y)dY
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Unit IV
Higher order derivative
A higher-order derivative refers to the repeated process of taking derivatives of

derivatives. Higher-order derivatives are applied to sketch curves, motion problems, and
other applications.
because the derivative of a function y = f( x) is itself a function y′ = f′( x), you can
take the derivative of f′( x), which is generally referred to as the second derivative of f(x) and
written f“( x) or f 2( x). This differentiation process can be continued to find the third, fourth,
and successive derivatives of f( x), which are called higher order derivatives of f( x). Because
the “prime” notation for derivatives would eventually become somewhat messy, it is
preferable to use the numerical notation f( n )( x) = y( n ) to denote the nth derivative of f( x).
Example 1: Find the first, second, and third derivatives of f( x) = 5 x 4 − 3x 3 + 7x 2 − 9x + 2.
Maxima and Minima
Maxima and minima are known as the extrema of a function. Maxima and minima are
the maximum or the minimum value of a function within the given set of ranges. For the
function, under the entire range, the maximum value of the function is known as the absolute
maxima and the minimum value is known as the absolute minima.
There are other maxima and minima of a function, which are not the absolute maxima
and minima of the function and are known as local maxima and local minima. Let us learn
more about local maxima and minima, absolute maxima and minima, and how to find the
maxima and minima of the function.
There are two types of maxima and minima that exist in a function, which are:
 Local Maxima and Minima

 Absolute or Global Maxima and Minima
Local Maxima and Minima
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Local maxima and minima are the maxima and minima of the function which arise in
a particular interval. Local maxima would be the value of a function at a point in a particular
interval for which the values of the function near that point are always less than the value of
the function at that point. Whereas local minima would be the value of the function at a point
where the values of the function near that point are greater than the value of the function at
that point.
Local Maxima: A point x = b is a point of local maximum for f(x) if in the

neighborhood of b i.e in (b−𝛿, b+𝛿) where 𝛿 can be made arbitrarily small, f(x) < f(b) for all
x ∈ (b−𝛿, b+𝛿)∖{b}. This simply means that if we consider a small region (interval) around x
= b, f(b) should be the maximum in that interval.
Local Minima: A point x = a is a point of local minimum for f(x) if in the

neighbourhood of a, i.e. in (a−𝛿,a+𝛿), (where 𝛿 can have arbitrarily small values), f(x) > f(a)
for all x ∈ (a−𝛿,a+𝛿)∖{a}. This means that if we consider a small interval around x = a, f(a)
should be the minimum in that interval.
Absolute Maxima and Minima
The highest point of a function within the entire domain is known as the absolute
maxima of the function whereas the lowest point of the function within the entire domain of
the function, is known as the absolute minima of the function. There can only be one absolute
maximum of a function and one absolute minimum of the function over the entire domain.
The absolute maxima and minima of the function can also be called the global maxima and
global minima of the function.
Absolute maxima: A point x = a is a point of global maximum for f(x) if f(x) ≤ f(a)
for all x∈D (the domain of f(x)).
Absolute minima: A point x = a is a point of global minimum for f(x) if f(x) ≥ f(a) for
all x∈D (the domain of f(x)).
Problem 1
Find the extrema of the given function: f(x) = -3x2 + 4x + 7 and the extremum value
using maxima and minima formulas.
Solution:
Using second order derivative test for the maxima and minima of a function:
Given function: f(x) = -3x2 + 4x + 7 ----------------(eq 1)
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Differentiate on both sides of (eq 1), w.r.t x.
⇒dy/dx = d(-3x2)/dx + d(4x)/dx + d(7)/dx
⇒dy/dx = - 6x + 4
Putting dy/dx = 0 to find critical points.
⇒ -6x + 4 = 0 ----------------(eq 2)
⇒x = 2/3
The critical point is 2/3.
Differentiate both sides of (eq 2), w.r.t x.
⇒ d2y/dx2 = d(-6x)/dx + d(4)/dx
⇒ d2y/dx2 = -6
Since d2y/dx2< 0, the given curve will have maxima at x = 2/3.
The maxima value of f(x) at x = 2/3 is,
f(2/3) = -3(2/3)2 + 4(2/3) + 7 = -4/3 + 8/3 + 7 = 25/3
Answer: The maxima of the function is at x = 2/3 and maximum value is 25/3.
Profit Maximization
Profit maximization is a strategy of maximizing profits with lower expenditure,

whereby a firm tries to equalize the marginal cost with the marginal revenue derived from
producing goods and services. Economists Hall and Hitch’s theory says that every firm’s sole
moto should be to generate profits. Classical economists assume the same.
It is the prime target of every firm and is necessary for their progress. Companies can
maximize profits by increasing the price or reducing the production cost of the goods. Firms
adjust influential factors like selling price, production cost, and output levels to realize their
profit goals.
Theoretically, the point at which the marginal cost and marginal revenue become
equal allows for the maximum gap between the MR and MC. As a result, the profit at this
point is always maximum.
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Formula
Hence, the simple formula of total profit is P = total revenue (TR) – total cost (TC); Or, P=
TR-TC
Thus, the profit is maximum when the difference between revenue and cost is the maximum.
However, it happens under two conditions – first order and second order.
First-order
It mandates that input’s marginal cost (MC) equals marginal revenue (MR).
mathematically: MR = MC
Second-order
According to it, one must fulfill the first order if the marginal revenue decreases and
the marginal cost increases. In other words, when marginal cost & marginal revenue are
plotted on a graph against the output, the slope of marginal revenue must always be less than
that of the slope of marginal cost for the application of second-order profit maximization.
Problem
1.A farmer has 400 yards of fencing and wishes to fence three sides of a rectangular field (the
fourth side is along an existing stone wall, and needs no additional fencing). Find the
dimensions of the rectangular field of largest area that can be fenced.
2x + y = 400 " y = 400 - 2x

A( x) = x(400 - 2x) = 400x - 2x2
A’( x) = 400 - 4x 400 - 4x = 0 " x =100
A”( x) = -4
By the 2nd derivative test, the dimensions would be 100 yd by 200 yd.
Integral Calculus
Calculus is the branch of calculus where we study integrals and their properties.
Integration is an essential concept which is the inverse process of differentiation. Both the
integral and differential calculus are related to each other by the fundamental theorem of
calculus.
f we know the f’ of a function that is differentiable in its domain, we can then

calculate f. In differential calculus, we used to call f’, the derivative of the function f. In
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integral calculus, we call f the anti-derivative or primitive of the function f’. And the process
of finding the anti-derivatives is known as anti-differentiation or integration. As the name
suggests, it is the inverse of finding differentiation.
Types of Integrals
Integration can be classified into two different categories, namely,
 Definite Integral
 Indefinite Integral
Definite Integral
An integral that contains the upper and lower limits (i.e.) start and end value is known
as a definite integral. The value of x is restricted to lie on a real line, and a definite Integral is
also called a Riemann Integral when it is bound to lie on the real line.
Indefinite Integral
Indefinite integrals are not defined using the upper and lower limits. The indefinite
integrals represent the family of the given function whose derivatives are f, and it returns a
function of the independent variable.
Problem 1Find the integral of e3x
Solution:
∫ d/dx(f(x)) = ∫ d/dx( e3x)
We know this is of the form of integral, ∫ d/dx(eax) = 1/a eax + C
∫ d/dx( e3x) = 1/3 e3x + C
Answer: The integral of e3x = 1/3 e3x + C
Average Cost definition
Average Cost, also called average total cost (ATC), is the cost per output unit. We can
calculate the average cost by dividing the total cost by the total output quantity.Total cost
means the sum of all costs, including the fixed and variable costs. Therefore, Average Cost is
also often called the total cost per unit or the average total cost.
Definition
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Average Cost equals the per-unit cost of production which is calculated by dividing
the total cost by the total output.
Average Cost Formula
The formula for calculating average cost is given by
Average cost = Total cost of the units/Number of units
Problem 1
Find the average cost of price of 11 bags whose prices are Rs.500, Rs.550, Rs. 450, Rs. 510,
Rs. 520, Rs. 530, Rs. 540, Rs. 460, Rs. 470, Rs. 480 and Rs. 490.
Solution: Given, the cost price of 11 bags are:
Rs.500, Rs.550, Rs. 450, Rs. 510, Rs. 520, Rs. 530, Rs. 540, Rs. 460, Rs. 470, Rs. 480 and
Rs. 490.
Hence, as per the average cost formula, we know;
Average = Sum of all the cost of bags/Total number of bags
A = (500+550+450+510+520+530+540+460+470+480+490)/11
A = 5500/11
A = 500
Consumer Surplus and Producer Surplus
consumer surplus and producer surplus are economic terms used to define market
wellness by studying the relationship between the consumers and suppliers. They explain the
opportunity cost consumers forego to gain a marginal benefit for buying a good or service. To
the producer, it is the willingness and ability to produce an extra unit of a product based on
the marginal cost of producing more goods.
Consumer surplus formula
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Unit V
Matrix
Matrix, a set of numbers arranged in rows and columns so as to form a rectangular

array. The numbers are called the elements, or entries, of the matrix. Matrices have wide
applications in engineering, physics, economics, and statistics as well as in various branches
of mathematics. Matrices also have important applications in computer graphics, where they
have been used to represent rotations and other transformations of images.
A rectangular array of m × n numbers (real or complex) in the form of m horizontal

lines (called rows) and n vertical lines (called columns), is called a matrix of order m by n,
written as m × n matrix. Such an array is enclosed by [ ] or ( ). In this article, we will learn
the meaning of matrices, types of matrices, important formulas, etc..
Types of Matrix
(i) Symmetric Matrix: A square matrix A = [aij] is called a symmetric matrix if a ij = aji, for
all i, j.
(ii) Skew-Symmetric Matrix: when aij = – aji
(iii) Hermitian and skew – Hermitian Matrix:
A=Aθ
(Hermitian matrix)(Aθ represents conjugate transpose)
Aθ=−A
(skew-Hermitian matrix)
(iv) Orthogonal matrix: if AAT = In = ATA
(v) Idempotent matrix: if A2 = A
(vi) Involuntary matrix: if A2 = I or A-1 = A
(vii) Nilpotent matrix: A square matrix A is nilpotent, if Ap = 0, p is an integer.
Addition of Matrices
If A[aij]mxn and B[bij]mxn are two matrices of the same order, then their sum A + B
is a matrix, and each element of that matrix is the sum of the corresponding elements. i.e. A +
B = [aij + bij]mxn
Subtraction of matrices
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If A and B are two matrices of the same order, then we define
A-B = A + (-B)
Consider the two matrices A & B of order 2 x 2.
Scalar Multiplication of Matrices
If A = [aij]m×n is a matrix and k any number, then the matrix which is obtained by
multiplying the elements of A by k is called the scalar multiplication of A by k and it is
denoted by k A thus if A = [aij]m×n.
Problem
1. Find the product of the matrices [4731][4731] and [5123][5123] using the concepts
ofmatrix operations.
Solution:
The given matrices are A = [4731][4731] and B = [5123][5123]
The aim is to find the product of these two matrices.
AB = [4731][4731] × [5123][5123]
AB
= [4×5+7×24×1+7×33×5+1×23×1+1×3][4×5+7×24×1+7×33×5+1×23×1+1×3] =
[3425176][3425176]
Therefore, the product of the two given matrices is [3425176][3425176].
Inverse of Matrix
Inverse of Matrix for a matrix A is denoted by A-1. The inverse of a 2 × 2 matrix can
be calculated using a simple formula. Further, to find the inverse of a matrix of order 3 or
higher, we need to know about the determinant and adjoint of the matrix. The inverse of
matrix is another matrix, which on multiplying with the given matrix gives the multiplicative
identity.
Inverse of 2 x 2 Matrix
The inverse of 2 × 2 matrix is easier to calculate in comparison to matrices of higher

order. We can calculate the inverse of 2 × 2 matrix using the general steps to calculate the
inverse of a matrix.
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Inverse of 3 x 3 Matrix
We know that for every non-singular square matrix A, there exists an inverse matrix A-1,
such that A × A-1 = I.
Rank of a Matrix
To define the rank of a matrix, we should have prior knowledge of sub-matrices and
minors of a matrix. Let A be a given matrix. Matrix obtained by deleting some rows and
some columns of matrix A is known as the sub-matrix of A. A matrix (Plural is matrices) is a
rectangular array of numbers, symbols, or expressions, which are arranged in the form of
rows and columns. Minor of the matrix is the determinant of the square matrix that is
obtained by deleting one row and one column from some larger square matrix.
Definition
The rank of the matrix refers to the number of linearly independent rows or columns
in the matrix. ρ(A) is used to denote the rank of matrix A. A matrix is said to be of rank zero
when all of its elements become zero. The rank of the matrix is the dimension of the vector
space obtained by its columns. The rank of a matrix cannot exceed more than the number of
its rows or columns. The rank of the null matrix is zero.
To Calculate Rank of Matrix There are Two Methods:
 Minor method
 Echelon form
Steps to Find the Rank of the Matrix by Minor Method:
(i) If a matrix contains at least one non zero element, then ρ (A) ≥ 1
(ii) The rank of the identity matrix In is n.
(iii) If the rank of matrix A is r, then there exists at least one minor of order r which does not
vanish. Every minor of matrix A of order (r + 1) and higher-order (if any) vanishes.
(iv) If A is a matrix of m × n , then
ρ(A) ≤ min {m, n}
(v) A square matrix A of order n has to inverse if and only if ρ(A) = n.
Steps to Find the Rank of the Matrix by Echelon Form:
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(i) The first element of every non-zero row should be 1.
(ii) The row in which every element is zero, then that row should be below the non-zero
rows.
(iii) Total number of zeroes in the next non-zero row should be more than the number of
zeroes in the previous non-zero row.
By elementary operations, we can easily bring the given matrix to the echelon form.
Problem 1
Find the Rank of a Matrix Using the Echelon Form.
[123234357]
Sol: First we will convert the given matrix into Echelon form and then find a number of non
zero rows.
The order of A is 3 × 3. Hence ρ(A) ≤ 3
A =[123234357]
Convert R₂ ⟶ R2 - 2R1 and R3⟶ R3 - 3R1
~
[1230−1−20−1−2]
Again R3⟶ R3 - R2
~
[1230−1−2000]
Now, the above matrix is in echelon form. In this number non zero rows is 2. Hence rank of
matrix 2.
Page 30 of 30

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STUDY MATERIAL FOR BBA

Analytic geometry, also called coordinate geometry, mathematical subject in which

Distance between 2 Points Formula

MN= √(x2 – x1)2 + (y2 – y1)2

The distance from origin to any point in the plane is calculated as

OM= √ x12 + y12

Now, substitute the values in the formula, we get

Slope, m = Change in y-coordinates/Change in x-coordinates

Equation of Straight Line

Equation of Straight Line Formula

ax + by = c, where a, b, c are constants and x, y are variables.

Equation of Straight Line

Slope intercept form: y= mx + c

Point slope form: y – y1 = m (x – x1)

For this, we first need to find the slope of the line.

Slope = (4-3)/(-2-1) = -1/3

Answer: The required equation is x + 3y = 10.

The formula of the point of Intersection of two lines is:

(x, y) = ((b1*c2−b2*c1)/(a1*b2−a2*b1), (c1*a2−c2*a1)/(a1*b2−a2*b1))

Measuring price & quantity

Supply, demand, equilibrium

Let x be the quantity demanded and y be the price.

X1 = 120, X2 = 200, Y1 = 20, Y2 = 15

The equation for the linear demand curve is

(y – y1)/(y2 – y1) = (x– x1)/(x2 – x1)

y – 20 / 15 – 20 = x-120 / 200 – 120

-5x + 600 = 80y – 1600

5x + 80y = 2200 or 5x + 80y-2200 = 0

Basically, a business will want to use a break-even analysis anytime it considers

Sometime businesses need to lower their pricing strategy to beat competitors in a

3. Narrowing down business scenarios

Variable expenses per rupees of sales = 40,000/ 1,00,000 = 0.4

The total cost equation is y = mx +c

Break even point = xe = c / 1- m

= 48000 / 1- 0.4 = 48000 / 0.6 = 80,000

Break even sales is Rs. 80,000

Y = 0.4 (1,50,000) + 48000

= 60000 + 48000 = 108000

The total cost for a sales of Rs. 1,50,000 is Rs. 1,08000

Profit = sales – total cost

 Finite set: The number of elements is finite

De Morgan’s Law: Definition

Examples on De Morgans law :

Applications of Set Theory

Cartesian Product of Sets

What is an Ordered Pair

Cartesian product of Sets

f'(x) = dy/dx ; x≠0

 If f(x) = tan (x), then f'(x) = sec2x

I. Write the following numbers in the standard form.

(i) 1,00,000 + 80,000 + 3,000 + 200 + 50 + 1

Standard SoP form

We will get Standard SoP form of output variable in two steps.

 Get the canonical SoP form of output variable

Convert the following Boolean function into Standard SoP form.

f = p’qr + pq’r + pqr’ + pqr

⇒ f = p’qr + pq’r + pqr’ + pqr + pqr + pqr

⇒ f = qrp′+p + prq′+q + pqr′+r

⇒ f = qr1 + pr1 + pq1

f'(x) = [u(x)/v(x)]' = [v(x) × u'(x) - u(x) × v'(x)]/[v(x)] 2

(x2 - 3)3 is a cubic function of a quadratic function

is a square root function of a quartic function

There are 2 ways to think about solving functions of a function:

(x, y) = ((b1c2−b2c1)/(a1b2−a2b1), (c1a2−c2a1)/(a1b2−a2b1))