Optimisation techniques are an important set of tools required for efficiently managing firm's resources. In what follows we will focus on the use of differential calculus to solve certain types of optimisation problems. Differential Calculus: The Concept of a Derivative: When a change in the independent variable, that is, ∆X gets smaller and approaches ∆Y zero, ∆Y/ ∆X becomes better [...]
1. Optimisation in Managerial Decision Making: Managerial economics is concerned with decision making by managers of a firm. Managers of a firm have to take decisions regarding the level of output of a product to be produced, the price for a product to be charged, the size of the sales force to be engaged, the technique to be used for [...]
In economics it is important to know the rate at which a variable changes in response to a change in another variable, the slope of a variable measures this rate. For example, it is important to know the rate at which quantity demanded of a commodity changes in response to a change in price of a commodity. In the field [...]