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Lecture 3 ME Spring 24

The document discusses mathematical concepts such as factoring expressions, properties of numbers like 0 and 1, writing linear equations, and calculating total, fixed, variable, average, and marginal costs. It provides examples of factoring expressions and writing equations for problems involving taxi fares and costs of printing books. It also defines key terms and concepts and includes exercises for readers to practice the discussed topics.

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0% found this document useful (0 votes)
18 views17 pages

Lecture 3 ME Spring 24

The document discusses mathematical concepts such as factoring expressions, properties of numbers like 0 and 1, writing linear equations, and calculating total, fixed, variable, average, and marginal costs. It provides examples of factoring expressions and writing equations for problems involving taxi fares and costs of printing books. It also defines key terms and concepts and includes exercises for readers to practice the discussed topics.

Uploaded by

mahinreza365
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Mathematical Economics

Section: A

Lecture 3
31 January 2024
 Expression, Term, Factor, Product
 3ab + 4a – 3

 Elementary Factoring
 abc – ab + abd
= ab (c – 1 + d)
 (3x + 4)(2x - 1)
= 6x2 + 5x – 4
 12x2+7x-10 = (3x-2)(4x+5).
Elementary Factoring

 Exercise: Factor
1) 10x2 + 26x + 12
2) x2 – 9
3) y2 – 25x2

Ans: 1) (5x + 3)(2x + 4)


2) (x+3)(x-3)
3) (y-5x)(y+5x)
Properties of the Numbers 0 and 1

 The number 0 is unique in several


respects.

First, a + (-a) = 0
that is, the sum of any number and its
negative is zero.
Second, a + 0 = a – 0 = a
that is, a number is not affected by
adding 0 to it or by subtracting 0 from it.
Properties of the Numbers 0 and 1

Third, for any number a,


0(a) = 0; that is, 0 times any number is 0.
Finally, a/0 is not defined.
Expressions such as 5/0; 0/0; or any
number divided by 0 are not defined. We
shall say alternatively that division by 0 is
impossible or that it is not permitted.
Properties of the Numbers 0 and 1

 The unique properties of 1 exist for both


multiplication and its inverse, division.
Thus a number is unchanged if it is multiplied
or divided by 1. We have,
a = (1)a = a/1.
and, we call 1 the multiplicative identity.
Any term may always be assumed to have a
factor of 1:
ab – a = a(b-1).
Properties of the Numbers 0 and 1
 Any number, 0 excepted, divided by itself
yields a quotient of 1.
6/6 = 1; ab/ab = 1; [provided a,b≠0]

 A number and its negative cancel each other,


meaning their sum is 0. a number and its
reciprocal cancel, meaning their product is 1.
a + (-a) = 0; and a(1/a) = 1
where 1/a is called the reciprocal or
multiplicative inverse of a.
Properties of the Numbers 0 and 1

 When working with fractions, cancellation


can be performed only for factors common
to numerator and denominator.
(a + 2)/a, here, we cannot cancel the a’s
because a is not a factor of the numerator.
 in (ax+2x)/x(b-1), we can write as,
(a+2)/(b-1).
Linear Equations

 Example:
Taxi fare from an airport to a nearby city is $1.25 per mile
driven, plus $0.75 for a bridge toll. Let y represent the fare
and x the number of miles driven on one trip, and write the
equation for y in terms of x.
Find the fare if the distance from the airport to the city is
22 miles.

Ans: Fare = (1.25)(number of miles driven) + 0.75


= (1.25)(22) + 0.75 = $28.25
Linear Equations

 Exercise:
Taxi fare from an airport to a nearby town is $0.80
per mile driven, plus $2 for tolls. Let y represent
the fare and x the miles driven on one trip. Write
the equation for y in terms of x. Find the fare
when the distance driven is 17 miles.

Ans: y = 0.08x + 2 = $15.60


Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

 Summary:
Total Cost = Variable Cost + Fixed Cost

Marginal Cost = Variable Cost Per Unit


(precisely the slope of the total cost function)

Average Cost = Total Cost Per Unit


Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

 Example:
It costs $2,500 to set up the presses and machinery
needed to print and bind a paperback book. After setup,
its costs $2 per book printed and bound. Let x represent
the number of books made and y the total cost of making
this number of books.
a) Write the equation for y in terms of x.
b) State the slope of the line, and interpret this number.
c) State the y-intercept of the line, and interpret this
number.
Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

a) The total cost is made up of the $2,500 setup


cost (often called the fixed cost) plus the cost
to make x books (often called the variable
cost). Since the cost per book is $2, the
variable cost to make x books will be $2x.
Thus, the total cost function y is:
y = 2x + 2,500, a linear equation in slope-
intercept form.
Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

b) The slope, 2, means that every additional book printed,


starting with the first copy, adds $2 to the total cost.
Note that it would not be proper to say books cost $2 per
copy.
That is, for example, if x = 100 books are made, then total
cost is y = 2(100) + 2,500 = $2,700.
And, $2,700 for 100 books is an average cost per copy of
2,700/100 = $27.
The slope is called the marginal cost, which is the extra cost
when an additional copy is made.
Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

c) The y-intercept, $2,500, is total cost when x = 0


books are made. That is, at x = 0, y = $2,500.
This means if the machines were made ready and
then it was decided not to print the book, this cost
would still be incurred.
Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

 Exercise:
An agency rents cars for one day and charges
$22 plus 20 cents per mile the car is driven.
a) Write the equation for the cost of one day’s
rental, y, in terms of x, the number of miles
driven.
b) Interpret the slope and the y-intercept.
c) What is the renter’s average cost per mile if a
car is driven 100 miles? 200 miles?
Fixed Cost, Variable Cost, Average
Cost, Marginal Cost

 Ans:
a) y = 0.20x+ 22
b) The slope, 0.20 means that each
additional mile driven adds 20 cents to total
cost. The intercept, 22, is the fixed charge,
which would be incurred even if the renter
did not drive it out.
c) $0.42 per mile and $0.31 per mile.

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