Mathematics for Modern EconomicsDesigned to give second-year undergraduates an intuitive understanding of basic mathematical techniques, and when and why they are applicable. Building on the traditional framework of calculus, the notion of a concave function is used to link the new algebraic methods with the more familiar graphical approachóand to introduce the modern use of duality in economic analysis. Final sections on consumer theory and the theory of the firm offer solutions to problems set earlier in the book. Contents: Sets, functions and their graphs; Differential calculus and local optima; Concave functions, global and constrained optima; Duality; Integration, first order differential and difference equations; Consumer theory and the theory of the firm; Appendix: Linear algebra^R |
Contents
The Language of Mathematics | 3 |
Functions of One Variable | 13 |
Differentiation of Functions of a Single Variable | 38 |
Copyright | |
17 other sections not shown
Other editions - View all
Common terms and phrases
axis budget constraint budget line Chapter choose concave function conclude consider constant consumer consumer's consumption convex convex function cost function defined Definition demand functions differentiable economic Envelope Theorem equal equation equilibrium example expenditure function Figure firm's function f(x given gives global maximum graph Hence income increase indirect indifference curve indirect utility function inequality labour Lagrangian Theorem level of utility long-run marginal cost marginal utility Marshallian demand functions matrix maximum of f(x minimise minimum monopolist monotonic transformation multiplier negative non-negative objective function obtain p₁ P₁x1 partial derivatives partial function production function properties q₁ quadrant quantity quasi-concave real number respect restricted cost function restricted profit function revenue Roy's Identity satisfy Shephard's Lemma short-run slope Solution stationary point strictly concave subject to g(x substitution tangent variables vector x₁ y₁ zero дрі