Math 1: Functions and their Applications

In general the two related variables x and y are such that values of y depend on the values of x, then x is called independent variable and y is called dependent variable.  ECONOMIC FUNCTIONS: 1. Demand function: p = f (D) 2. Supply function: p = f (S) 3. Equilibrium: D = S 4. Total Revenue Function: R = p.d 5. Average Revenue Function: AR = R ÷ D = p 6. Total Cost Function: C(x)= FC + V(x), where C equals total production cost, FC is total fixed costs, V is variable cost and x is the number of units.  7. Average Cost Function: AC = C ÷ x 8. Profit function: Profit = R - C If R is greater than C then profit  If R is less than C then loss If R = C then break-even point.