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Chapter0 - c x = ax> 1 and the firm’s profits are given...

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Chapter 0 Math Review (I) : College algebra and some basic calculus. For example: (1) Relating graphs to equations (e.g., y= a x+b is a straight line). (2) The derivative of f ( x ) = ax ! is df dx = ! ax ! " 1 (3) The derivative of f ( x ) = a + bx ! cx 2 is df dx = b ! 2 cx . (II) : Basic course in economics. (1) Use graphs for economics analysis (2) Basic optimization. For example: If x =output, P =output price, a firm’s cost function is
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Unformatted text preview: c ( x ) = ax , > 1 and the firm’s profits are given by = Px " ax # , then a profit-maximizing firm will operate where P = ax " 1 , implying input demand is: x = P a " # $ % & ’ 1 ( 1 If you are a bit rusty, don’t be intimidated. We will progress gradually with the mathematical analyisis....
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