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Mathematics

The document discusses functions, defining them as relations involving variables where one is dependent on another. It outlines various types of functions, including constant, linear, and exponential, and their applications in economics, such as demand, supply, total revenue, total cost, and profit functions. Additionally, it explains the concept of the break-even point where total revenue equals total cost, resulting in zero profit.

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Darshil Bhansali
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48 views10 pages

Mathematics

The document discusses functions, defining them as relations involving variables where one is dependent on another. It outlines various types of functions, including constant, linear, and exponential, and their applications in economics, such as demand, supply, total revenue, total cost, and profit functions. Additionally, it explains the concept of the break-even point where total revenue equals total cost, resulting in zero profit.

Uploaded by

Darshil Bhansali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Group-4

25 – Ichhapurni Bakshi
26 - Jyoti Banswani
27 – Natasha Bellaney
28 – Utsav Benara
29 – Tanishq Bhandari
30 – Darshil Bhansali
31 – Mayank Bharani
32 – Aanchal Bhatia
Functions And Their Applications

Functions is a relation or
expression involving one or
more variables in which one
variable is dependent on
another or one variable is the
function of other
Functions And Their Applications

u Example :
X Y
u In a Maths test answering 1 question
correctly will give us 2 points
1 2
u So 1 Question = 2 Points
u X= independent value 2 4
u Y= dependent value
u Y=f(x) ; where y is said to be a 3 6
function of x
Types of Functions
u 1. Constant Function
u 2. Linear Function
u 3. Quadratic Function
u 4. Power Function
u 5. Polynomial Function
u 6. Exponential Function
u 7. Logarithm Function
Functions In Economics

• Demand Function
• Supply Function
• Total Revenue Function
• Total Cost Function
• Profit Function
Demand Functions Supply Functions

Demand function is defined by p=f(x), A supply function is a tool used by


where p measures the number of economists to measure the
units of the commodity in question, relationship between price and
and is generally characterised as a quantity of goods supplied. The
decreasing function of x ; that is , supply function describes the effect
p=f(x) decreases as x increases that changes in one variable have on
another. Supply function can be
described with three variables: Price,
Quantity Supplied, and Marginal Cost
Total Revenue Function Total Cost Functions

Total revenue is the total receipts a The cost function measures the minimum cost
seller can obtain from selling of producing a given level of output for some
goods or services to buyers. It can fixed factor prices. The cost function describes
be written as P × Q, which is the the economic possibilities of a firm. Cost
price of the goods multiplied by the functions are important in studying the
quantity of the sold goods. determination of optimal output choices.

Total cost = fixed cos t+ variable cost


TR = price * quantity demanded
Thus , C = a+bx
R = p*D
Here , ‘a’ is fixed cost and ‘b’ is variable
cost
Profit Function

Profit is the difference between the revenue and the costs. A


profit function is a relationship that shows the difference
produced by taking the cost function from the revenue
function. The graph of a profit function can show the best
combination of the revenue and costs so the maximum
amount of profit can be produced.
BREAK-EVEN POINT

The point where total revenue and total cost


intersect is the Break-Even Point.

The profit at this point is zero


Profit = revenue-cost
At break-even point P=0
Therefore , Revenue = Cost
Group-4

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