Marginal Revenue (MR) is the instantaneous rate of change of total revenue with respect to the number of items sold at an instant.
Definitions [14]
Definition: Decreasing Function
A function f is said to be decreasing at a point c if f '(c) < 0.
x1 < x2 ⇒ f(x1) ≥ f(x2)
Strictly decreasing function:
x1 < x2 ⇒ f(x1) > f(x2)
Definition: Maximum Values
f is said to have a maximum value in D if there exists a point x = c in D such that f(c) ≥ f(x) for all x ∈ D. The number f(c) is called the (absolute) maximum value of f in D, and the point c is called the point of maxima of f in D.
Definition: Local Maxima
f is said to have a local (or relative) maxima at x = c (in D) if there exists a positive real number δ such that f(c) > f(x) for all x in (c − δ, c + δ) x ≠ c i.e. f(c) > f(x) for all x in the immediate neighbourhood of c, and c is called point of local maxima and f(c) is called local maximum value.
Definition: Local Minima
f is said to have local (or relative) minima at x = d (in D) if there exists some positive real number δ such that f(d) < f(x) for all x ∈ (d − δ, d + δ) x ≠ d i.e. f(d) < f(x) for all x in the immediate neighbourhood of d, and d is called point of local minima and f(d) is called local minimum value.
Definition: Critical Point
A point x = c in the domain of the function f at which either f′(c) = 0 or f is not differentiable i.e. f′(c) does not exist is called a critical point.
Definition: Stationary Point
A point x = c (in D) is called a stationary point iff f is differentiable at x = c and f′(c) = 0.
Definition: Absolute Error
The increment δx in x is called the absolute error in x.
Absolute error in x = |δx|
Definition: Relative Error
If δx is an error in x, then \[\frac{\delta x}{x}\] is called the relative error in x.
Definition: Turning Point
A stationary point x = c (in D) where the function f changes its nature from increasing to decreasing or from decreasing to increasing, i.e. where the function f has local maxima or local minima, is called a turning point.
Definition: Percentage Error
If δx is an error in x, then \[\frac{\delta x}{x}\] × 100 is called the percentage error in x.
Definition: Marginal Cost
Marginal Cost (MC) is the instantaneous rate of change of total cost with respect to the number of items produced at an instant.
Definition: Marginal Revenue
Definition: Increasing Function
A function f is said to be increasing at a point c if f '(c) > 0.
f is increasing in an interval if
x1 < x2 ⇒ f(x1) ≤ f(x2)
Strictly increasing function:
x1 < x2 ⇒ f(x1) < f(x2)
Definition: Minimum Values
f is said to have a minimum value in D if there exists a point x = d in D such that f(d) ≤ f(x) for all x ∈ D. The number f(d) is called the (absolute) minimum value of f in D, and the point d is called the point of minima of f in D.
Formulae [11]
Formula: Rate of Change
\[\text{Rate of change of}y=\frac{dy}{dx}\times\text{rate of change of}x.\]
Formula: Equation of Tangent to the Curve
at P(x1,y1)
\[y-y_1=\left(\frac{dy}{dx}\right)_{x=x_1,y=y_1}(x-x_1)\]
Formula: Differntials
\[\delta y=\frac{dy}{dx}\operatorname{\delta}x\]
Formula: Slope of Tangent
slope of tangent at P = \[\left(\frac{dy}{dx}\right)_P\]
Formula: Slope of Normal
\[\text{slope of normal at }P=-\frac{1}{\left(\frac{dy}{dx}\right)_P}\]
Formula: Angle of Intersection of Two Curves
If m1 and m2 are the slopes of the tangents at the point of intersection, then
\[\tan\theta=\left|\frac{m_1-m_2}{1+m_1m_2}\right|\]
Formula: Instantaneous Rate of Change
\[\lim_{\delta x\to0}\frac{\delta y}{\delta x}=\lim_{x_2\to x_1}\frac{f(x_2)-f(x_1)}{x_2-x_1}\]
Formula: Average Rate of Change
Average rate of change = \[\frac{\delta y}{\delta x}=\frac{f(x_2)-f(x_1)}{x_2-x_1}\]
Formula: Velocity, Acceleration and Jerk
1. Velocity
\[v=\frac{ds}{dt}\]
2. Acceleration
\[a=\frac{dv}{dt}=\frac{d^2s}{dt^2}\]
3. Jerk
\[j=\frac{da}{dt}=\frac{d^3s}{dt^3}\]
Formula: Approximations
\[f(a+h)\approx f(a)+hf^{\prime}(a)\]
Formula: Equation of Normal to the Curve
y = f(x) at P(x1,y1)
\[y-y_1=-\frac{1}{\left(\frac{dy}{dx}\right)_{x=x_1,y=y_1}}(x-x_1)\]
or
\[(x-x_1)+\left(\frac{dy}{dx}\right)_{x=x_1,y=y_1}(y-y_1)=0\]
Key Points
Absolute Maxima/Minima on Closed Interval
-
Step 1: Find critical points in (a, b)
-
Step 2: Take end points a and b
-
Step 3: Find f(x) at all these points
-
Step 4:
Largest value → Absolute maximum
Smallest value → Absolute minimum
Key Point: Second Derivative Test
Let f be twice differentiable at c and f′(c) = 0.
Then:
-
If f′′(c) < 0
→ c is a point of local maxima -
If f′′(c) > 0
→ c is a point of local minima -
If f''(c) = 0
→ Test fails (use first derivative test)
Key Points: First Derivative Test
Let f be continuous at a critical point c.
If:
-
f′(x) changes from positive to negative as x passes through c
→ c is a point of local maxima -
f′(x) changes from negative to positive as x passes through c
→ c is a point of local minima -
f′(x) does not change sign
→ c is neither a maxima nor a minima (point of inflexion)
Key Points: Sign of Function
\[\frac{dy}{dx}\] > 0 → increasing
\[\frac{dy}{dx}\] < 0 → decreasing
\[\frac{dy}{dx}\] = 0 → tangent parallel to x-axis
\[\frac{dy}{dx}\] does not exist → tangent parallel to y-axis
