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Unformatted text preview: Variables move in the opposite directions Downwardsloping line Positive (direct) Variables move in the same direction Upward sloping line 10/22/10 4 Managerial Economics Math Review (cont) Optimization Maximums and Minimums (Max Profits & Min Costs) Slope at Max/Min = 0 Max/Min of any function occurs where slope = 0 Slope = change in one variable relative to another Derivative = change in one variable relative to another Marginal = change, additional, next, etc. 10/22/10 5 Managerial Economics Math Review (cont) Optimization If = TR TC To Maximize , the change in must be 0 Change in is called Marginal Profit To maximize Total Profit, we find where Marginal (change in) Profit is 0 10/22/10 6 Managerial Economics...
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This note was uploaded on 10/21/2010 for the course ACCT 12345 taught by Professor Beth during the Spring '10 term at Oklahoma City Community College.
 Spring '10
 beth

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