ABSTRACT

This appendix presents a set of key concepts and definitions related to the use of functions in microeconomics. It is not intended to give a completely general treatment for students who have never worked with functions, graphs, and calculus, but its aim is instead to provide an intuitive refresher and point of reference for the parts of mathematics that you covered in secondary school but where recollection is somewhat hazy. In my experience, many students easily remember that the derivative of 3x 2 is equal to 6x but are somewhat perplexed when asked to take the derivative of the cost function C(q) = 10 + q 2 with respect to q and interpret the result. This is for you.