NEKG33 Mathematical methods for economists

Chapter 6 : Day 06: Derivatives

By Lund University

Economists love derivatives. Will you?

Basic derivatives

This section introduces derivatives. It begins by defining the tangent, a straight line that just touches the graph of the function. The slope of this tangent is precisely the derivative of the function at the touching point. We will return to the formal definition of a derivative later on in the course. We then look at rules which will help us finding the derivative of a function. There is a lot more to say about derivatives but we will come back to this in the second half of the course. One lecture is missing: a lecture on increasing / decreasing functions.

Introduction to derivatives

Derivatives and its relationship to increasing and decreasing functions

Rules for differentiation

Basic derivatives: Problems

Exercises on derivatives

Problem: Find derivatives from the graph

Problem: Find the slope of the tangent

Problem: Economic interpretation of slope and intercept

Problem: Find marginal profit, revenue and cost

Problem: Compute derivatives

Problem: Find the derivative of a composite function

Problem: Compute derivatives

Problem: Differentiate functions

Problem: Differentiate functions

Problem: Differentiate functions

Problem: Differentiate functions

Problem: Economic interpretation of the derivative of an exponential function

Problem: Find the equation of the tangent