WELCOME

MATH134 - BUSINESS CALCULUS

 Course Description
• This course deals with functions, limits and
continuity, derivatives, integration and their
applications to business & economics. It
focuses on development of problems solving
skills through in-depth understanding of the
concepts in calculus. This course provides
strong foundation for the development of
quantitative skills use for decision making in
business management.
 Tips for Success
in Math134 Class
1. READ THE COURSE SYLLABUS
2. LOOK AT THE COURSE CALENDAR
3. ASK QUESTIONS
4. SHOW or EXPLAIN WORK
5. SCHEDULE TIME TO STUDY
6. READ AND FOLLOW INSTRUCTION
7. USE ONLINE RESOURCES
8. ACCOMPLISH ALL ONLINE ASSESSMENTS
9. REVIEW YOUR ASSIGNMENTS AND TESTS
10. ATTEND CLASSES
11. BE PERSISTENT AND BE PATIENT
 FUNCTIONS

Definition
Ways of Representing a Function
Types of Functions
Functions Used in Economics
 Function
A function is a rule that assigns to each object
in a set A exactly one object in a set B.
Example: Suppose x is the number of items
sold and y is the total amount gain
from selling those items.
x y

0 P0
1 P50
2 P100 Note that it produces a
correspondence between two sets of
3 P150 element such that to each element in
the first set (domain) there
5 P250 corresponds one and only one
element in the second set (range).
Function as a Machine
 Ways to Represent a Function
A function can be specified:
Numerically: by means of a table

Source:
www.census.gov.ph
 Ways to Represent a Function

Algebraically: by means of a formula

Suppose that the function f is specified by

f(x) = 3x2 – 4x + 1
Then,
f(2) = 3(2)2 – 4(2) + 1 = 5
or
f(1) = 3(1)2 – 4(1) + 1 = 0
 Ways to Represent a Function

A piecewise-defined function

Find , , and if
 Ways to Represent a Function
graphically: by means of a graph
The graph of the function f is the set of all points (x, f(x))
in the xy-plane, where we restrict the values of x to lie in the
domain of f.

To sketch the graph of the function

f(x) = x2 Function notation

y = x2 Equation notation

x -3 -2 -1 0 1 2 3
Domain: Set of all
real numbers y = x2 9 4 1 0 1 4 9
 Ways to Represent a Function
x -3 -2 -1 0 1 2 3
y = x2 9 4 1 0 1 4 9
Plotting these points gives the picture on the left,
suggesting the graph on the right
 Ways to Represent a Function

Source: www.da.gov.ph
 Types of Functions
Linear Functions

Quadratic Functions

Polynomial Functions

Rational Functions

Exponential and Logarithmic Functions

 Functions Used in Economics
Demand function D(x)
is the price p=D(x) that must be charged
for each unit of the commodity if x units
are to be sold.
Supply function S(x)

is the unit price p=S(x) at which

producers are willing to supply x units to
the market.
Demand and Supply Functions
 Functions Used in Economics
Cost function C(x)
is the cost of producing x units of the
commodity.
Revenue function R(x)
is the revenue obtained from selling x
units of the commodity R(x)=xp(x).
Profit function P(x)
is the profit obtain from selling x units
of the commodity P(x)=R(x) – C(x).
 Example: Revenue and Profit
Market research indicates that consumers will buy
x thousand units of a particular kind of coffee maker
when the unit price is dollars.
The cost of producing the x thousand units is
thousand dollars.
a. What are the revenue and profit functions
for this production process?
b. For what values of x is production of coffee
makers profitable?
 Composition of Functions
Given a function g(u) and f(x), the composition
g(f(x)) is the function of x formed by substituting
u=f(x) for u in the formula for g(u).
Example: Composition of Functions

Find the composite function ,

where and .
 Linear Function
A function is said to be a linear function, if it can
be written in the form
f(x)  mx  b (function form)
or
y  mx  b (equation form)
where m and b are real numbers. The domain and
the range are the set of all real numbers. If m = 0,
then f(x) is a constant function of the form f(x)  b
which has the set of all real numbers as its domain
and the constant b as its range.
Linear Function
 Linear Function
Example
Determine the domain and sketch the graph of
the linear function f(x)  3x  1 .
Linear Function
 Quadratic Function

A function is a quadratic function if

f (x )  ax 2  bx  c ,
where a, b, and c are real numbers,
with a  0 . The domain of a quadratic
function is the set of all real numbers.
 b 
The value of f   is minimum if
 2a 
a>0 and maximum if a<0.
Graph of the Quadratic Function

The graph of a quadratic function

f (x )  ax 2  bx  c has its vertex at
  b   b 
 ,f   . The graph opens
 2a  2a  
upward if a>0 and downward if a<0.
Graph of the Quadratic Function

Example

Sketch the graph of the function

2
f (x )  2x  12x  16
 Polynomial Function

A polynomial function is a function of the form

f ( x)  a xn  a x n  1  ...  a x  a ,
n n 1 1 0
where n is a nonnegative integer, called the
degree of the polynomial. The coefficient
an , an  1,..., a1 and a 0 are real numbers, with
a (called the leading coefficient) not equal
n
to zero. The domain of f is the set of all real
numbers.
 Graphs of Polynomial Function
Example

A) f(x)  2x  1 D) G ( x )  x 2  4x  2
B) g(x)  x 3  2x  1 E) F ( x )  x 4  2x 2  x  1
C) h ( x )  x 5  4x 3  4x  1 F) H ( x )  x 6  6x 4  14x  x  5
 Graphs of Polynomial Function

f ( x )  2x  1 g( x )  x 3  2x  1 h ( x )  x 5  4x 3  4x  1
Degree: 1 Degree: 3 Degree: 5
 Graphs of Polynomial Function

G ( x )  x 2  4x  2 F ( x )  x 4  2x 2  x  1 H ( x )  x 6  6x 4  14 x  x  5
Degree: 2 Degree: 4 Degree: 6
 Rational Function

A rational function is of the form

T( x)
f ( x)  ,
B( x )
where T(x) and B(x) are polynomials.
The domain is the set of all real
numbers such that B(x)  0.
 Graph of Rational Function

Example
Find the domain, intercepts, and asymptotes of the
rational function. Sketch the graph.
x 1
f (x ) 
x 2
 Exponential Function
An exponential function is of the form
f(x)  b x ,
where b>0, and b1. The domain of the
exponential function is the set of all real
numbers and the range is the set of all
positive numbers.

Example
Sketch the graph of the exponential functions
x
1
A) f(x)  3 x B) f(x)    C) f(x)  2 x
3
 Exponential Function
Example
Sketch the graph of the exponential functions
x
1
A) f(x)  3 x B) f(x)    C) f(x)  2 x
3

x -3 -2 -1 0 1 2 3 4

3x

x
1
 3
 
2x
Properties of Exponential Function
f(x)  3x 1
x f(x)  2x
f(x)   
 3

Let f(x)  b x , such that b > 0 and b  0:

1. The graph of the exponential function passes through the point (0, 1).
2. The graph is a continuous curve.
3. The horizontal asymptote is the x-axis.
4. If b > 1, then bx increases as the value of x increases.
5. If 0 < b < 1, then bx decreases as the value of x increases.
 Properties of Exponents
Let a and b be greater than zero, and a  0, b  0:

x y ax
3. y  a x y
y y xy
1. a xa  a 2. (a x )  a
a
x x
a  a 1
4. (a b ) x  a x b x 5.    x 6. a x 
b  b ax

y
7. ax  a if and only if x  y 8. For x  0 , a x  b x if and only if a  b

Example
Use the properties of exponents to solve for x.

A) Solve 9 x  27 B) Solve 322x 1  128x 3

 Exponential Function with Base e
An exponential function with base e and 1/e,
respectively, is of the form

f(x)  e x and f(x)  e  x

with domain as the set of all real numbers and

the range is the set of all positive real numbers.
The base e is an irrational number with a value
of 2.718281828459…

Sketch the graph of following exponential functions.

A) f(x)  e 2x B) f(x)  e 2 x
Exponential Function with Base e

f(x)  e 2x f(x)  e2 x

.

Applications
Compound growth
A businessman invests Php50,000 an account
paying 7.5% compounded quarterly.
A) How much money will be in the account after 2 years?
B) How much money will be in the account after 10 years?
C) How much money will be in the account after 20 years?
Sketch the graph, showing the growth of the money for 0  t  20 .

Compounding Continuously
What amount will an account have after 5 years if Php20,000 is
invested at an annual rate of 5% compounded continuously?
Sketch the graph of the growth of money for 0  t  20 .
 Logarithmic Function
The logarithmic function with base b, where
b > 0 and b  1, is of the form
y
y  log b x if and only if b  x.
The domain of a logarithmic function is the set
of all positive real numbers and the range is the
set of all real numbers. Logarithmic function is
the inverse of the exponential function.

Example
Sketch the graph of h ( x )  log 2 x and f ( x )  2 x
on the same coordinate system.
Logarithmic Function
x
f ( x)  2

h ( x )  log 2 x
 Logarithmic Function
Example
Change each logarithmic form to an equivalent exponential form.
1
A) log10 1000  3 B) log 64 8 
2
1
C) log 2  4 D) log5 25  2
16
1 1
E) log 9 3  F) log 4  3
2 64
 Logarithmic Function

A) log10 1000  3 is equivalent to 103  1000

1 12
B) log 64 8  is equivalent to 64 8
2
1 1
C) log  2 is equivalent to 2 2 
2 4 4
D) log5 25  2 is equivalent to 52  25
1 12
E) log 9 3  is equivalent to 9 3
2
1 1
F) log 4  3 is equivalent to 4 3 
64 64
 Logarithmic Function
Example .
Change each exponential form to an equivalent logarithmic form.

4
34  81 10 0  1
1
A) B) C) 2 
16
2 1
D) 5 3  125 E) 6  36 F) 10  3 
1000
 Logarithmic Function
Solution

A) 34  81 is equivalent to log3 81  4

0
B) 10  1 is equivalent to log10 1  0
1 1
C) 2 4  is equivalent to log  4
6 2 6
D) 53  125 is equivalent to log 125  3
5
E) 62  36 is equivalent to log6 36  2
1 1
F) 10  3  is equivalent to log10  3
1000 1000
 Logarithmic Function
Example
Solve for y, b, or x in the following equations.

A) y  log 27
9 B) log
3
x  1 C) log 10000  4
b
 Properties of Logarithm

Let b, x, and y be positive real numbers, b  1.

Also let p and r be real numbers, then:
1. log b 1  0 5. logb x p  plogb x
x
2. log b b  1 6. log b  log b x  log b y
y
3. logb b r  r 7. log b xy  log b x  log b y
logb r
4. b  r ,r  0 8. log b x  log b y iff x  y
 Common Logarithm and Natural Logarithm

A logarithm to the base 10 is called common logarithm.

The subscript 10 is usually omitted from the notation
and logarithm to the base e is called natural logarithm.
log x means log10 x and ln x means log e x

Example
Solve ln( x  1)  7
Solve ln x  ln( x  8)  1
 Applications
Doubling Time for an Investment. If a businessman
invests his money in an account paying 7.5% interest
compounded continuously, then how long will it take
for his money to double?

Investment. Tommy deposits Php75,000 in an account

paying 9% compounded quarterly. How long will it take for
the original deposit to triple?