THE DERIVATIVE IN
ECONOMICS
Some examples
Recall: derivatives
Recall: the derivative of ( ) at is denoted by
()
( ) or
or
and is defined by
()
= lim
.
In this lecture, you will see some applications in
economics that involve derivatives.
Price elasticity
INTRODUCTION TO
OPTIMIZATION
A first look
Profit maximization
Consider a firm which has a cost function ( ).
Its output can be sold in the market at a price ( ).
Its revenue is
= ( ).
Its profit is
=
=
( ).
Question: what brings the firm highest profit?
INTRODUCTION TO
CALCULUS
Finding Derivatives
Rate of change of a function
We are interested in: how does the dependent
variable change responding to a change in the
independent variable?
Idea: Take a function : . If c hanges from
to + , then ( ) changes f
MATHEMATICAL TERMS
AND NOTATIONS
Sequences and Examples
sequence
A sequence of numbers , , , depicts how a
variable c hanges over time. Denote as the value
of at the end of period .
Examples:
The aging process: =age in year . For someone who is
born in 20
MATHEMATICAL TERMS
AND NOTATIONS
Sets, functions and equations
sets
A set is a collection of objects defined in a precise
way so that a given object is either in the set or not
in the set.
Notation:
, for example the set that contains integers from 1
to 5
CB2505
e -Bus ine s s
e-Business Security
Week 7
Symmetric Encryption
How many pairs of keys are needed if 4 people want to communicate to each
other securely and privately?
Symmetric Encryption
6 different public keys are required for 4 people with each
CB2505
e -Bus ine s s
e-Business Security
Week 7
Intended Learning Outcomes
Explain Various Kinds of Threats to Computer
Security
Illustrate the Principles and Practices of
Cryptography
Explain the concept of E-Certification and Digital
Signing
3
Internet
CB2505
e -Bus ine s s
Mobile Commerce
Week 6
Pros and Cons of Location-Based
Mobile Commerce
Spend 5 minutes to explore the pros and
cons of Location-Based Mobile Commerce
Applications. You can feel free to discuss
with people sitting next to you.
2
Locat
CB2505
e -Bus ine s s
Mobile Commerce
Week 6
General Exam Information
Open book Exam, 2 hours, 4 Essay Type Questions
(no more than 1.2 minutes for each mark)
2 Questions from IS Area, 2 Questions from MS
Area
*IS answers written in the space provided in
CB2505
e -Bus ine s s
B2C/B2B e-Commerce & Revenue
Models
Week 4
How Inte rne t Te chnologie s he lp
firms a da pt to cha nge s
Technology-Enabled Business Analytics
On the Web, firms can easily obtain detailed customer
information to set prices, negotiat
CB2505
e -Bus ine s s
B2C/B2B e-Commerce & Revenue
Models
Week 4
Inte nde d Le a rning Outcome s
Describe the common business models and
examples for e-Commerce
Discuss the products/services suitable for eCommerce
Explain the common revenue models for eCo
C B2505 e -Bus ine s s
TechnologiesofeCommerce
Web1.0,2.0,andWeb3.0+
Le cture 3
Challenging Brain Exercise
Spend (5 minutes) to think about how Web 2.0 Technology
(one example) and 3.0 Technology (one example) can be
applied to improve the business proces
C B2505 e -Bus ine s s
TechnologiesofeCommerce
Web1.0,2.0,andWeb3.0+
Le cture 3
Whatll be next after iPhone/iPad?
Intended Learning Outcomes
Describe the fundamental concepts of Web 1.0
and 2.0 technologies
Introducing HTML 5
Describe the characteristics
CB2505
BusinessPlanand
Entrepreneurship
Lecture 2
1
WhosWho
Dustin
Moskovitz
(Facebook
partner)
E-business entrepreneur examples
Jeff Bezos, Amazon.com
Jack Dorsey
Bill Gates, Microsoft
(Co-founder
Steve Jobs, Apple Inc.
of Twitter)
Mark Zuckerberg, F
CB2505
IntroductiontoeBusiness
Lecture 1
1
CategoriesofeCommerce
B2C, B2B, C2C, .?
Taobao.com
B2B
B2C, C2C
B2C, C2C
B2C
2
YourBrainExercise
Discuss with the person sitting next to
you to identify any other factors that are
critical for the success of e-Bu
CB2505
IntroductiontoeBusiness
Lecture 1
1
CourseIntendedLearningOutcomes
Know the teaching team;
Describe Understand the Intended Outcomes
of this course;
Explain the logistic arrangement of this
course;
Explain the basics about e-Business.
2
TeachingTea