Minimal_Math_Concepts_for_Economists_v3

Minimal_Math_Concepts_for_Economists_v3 - OVERVIEW OF Math...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
OVERVIEW OF Math Concepts that All Economics Students Should Know After Completing Math 1309 And Preparing to Enter ECO 3301: Intermediate Microeconomics Compiled by Professors Tom Fomby, Santanu Roy, and Shlomo Weber of the Department of Economics and Professor Gary Moskowitz Cox School of Business May 27, 2009 The list of topics covered here is not meant to be exhaustive. They represent an intermediate level of knowledge in basic math and calculus that is needed for a beginning level of understanding for students taking a rigorous Intermediate Microeconomics course (ECO 3301). More advanced microeconomic concepts, for example, level curves, isoquants, indifference curves, iso-profit curves, constrained optimization, Lagrangian multipliers, equi-marginal principles of consumption and production, expansion paths, indirect utility, and Shephard’s lemma are topics for later study in intermediate and advanced microeconomics. However, given knowledge of the basic mathematical topics discussed below, the above mentioned advanced microeconomic topics can easily be presented and discussed in the Intermediate Microeconomics course proper. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
To be explicit, it is the opinion of the Faculty of the Department of Economics at SMU that thorough preparation in the following topics represents a minimal calculus preparation for mathematical success in the study of Intermediate Microeconomics and more advanced courses in Economics: College Algebra : The Slope-Intercept Form of a Linear Equation Solving two linear equations in two unknowns Working with Inequalities Present Value Calculation Basic Univariate Differential Calculus : Total, Average, and Marginal Functions in Economics Total and Marginal Revenue given the Demand Curve Maximizing Profit of Firm Minimizing Average Costs and the Relationship between Average Cost and Marginal Cost Basic Univariate Integral Calculus : Consumer and Producer Surplus (The area under a curve and the area between curves) Consumer Surplus: The Area under the Demand Curve but above the price line Producer Surplus: The Area above the Supply Curve but below the price line The Sum of Consumer and Producer Surplus: The Area Between the Demand and Supply Curves The Calculation of Probabilities of Events and Mean and Variance of a Continuous Random Variable 2
Background image of page 2
Basic Multivariate Differential Calculus and Partial Differentiation : The marginal productivity of labor and capital when using a Cobb-Douglas production function technology Complementary and Substitute Products Multi-product Profit Maximization Detailed examples of these concepts are contained in the following sections. Some of the problems are adapted from the textbook Applied Mathematics for the Managerial, Life, and Social Sciences by S.T. Tan (fourth edition), (Thomson, 2007).
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/23/2010 for the course ECO 3301 taught by Professor Mananroy during the Spring '10 term at Southern Methodist.

Page1 / 11

Minimal_Math_Concepts_for_Economists_v3 - OVERVIEW OF Math...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online