Differentiation:

Basic Concepts
Techniques
Applications in Business and
Economics
 Definition of Terms

Slope – is the measurement of a line, and is defined as the ratio of

the "rise" divided by the "run" between two points on a line, or in
other words, the ratio of the altitude change to the horizontal
distance between any two points on the line.
 Definition of Terms

Secant line of a curve – is a line that intersects two points on the

curve. The word secant comes from the Latin word “secare”,
meaning to cut.
 Definition of Terms

Tangent line to a curve at a given point – is the straight line that "just
touches" the curve at that point
 The Derivative of a Function

The derivative of a function with respect to is the

function given by

The process of computing the derivative is called differentiation,

and we say that is differentiable at if exists.
 Applications in Business and
Economics
A business manager determines that the cost of producing
x units of a particular commodity is C thousands of dollars,
where
.
a. Find the change in cost if production changes
from 10 units to 15 units
b. Find the average cost as the level of production changes
from 10 units to 15 units.
c. Find the instantaneous rate of change of cost with respect
to production level of 10 units.
d. Find the actual cost of producing the 11th unit.
 Solve more problems

Page 112 # 1, 3, 7, 9, 33, 37, 47

 Problem Set

Page 93 – 95 #40, 42, 44, 48, 50, 54,

Page 115 #46, 50
Page 126 #52, 54
Page 139 #48
Page 153 # 66
Techniques of Differentiation
 Techniques of Differentiation

Example: Using the Power Rule

(a) If f(x) = x6, then f(x) = ?

(b) If y = x1000, then y= ?

(c) If y = t 4, then =?

(d) =?
Techniques of Differentiation
Techniques of Differentiation
 Applications in Business and
Economics
The gross domestic product (GDP) of certain country was
billion dollars t years after 1998.
a) At what rate was the GDP changing with respect to
time in 2008?
b) At what percentage rate was the GDP changing with
respect to time in 2008?
 Applications in Business and
Economics

A manufacturer determines that t months after a new product

is introduced to the market, hundred units can
be produced and then sold at a price of
dollars per unit.
a) Express the revenue R(t) for this product as a function
of time.
b) At what rate is revenue changing with respect to time
after 4 months?