Syllabus

Unit – 1
Functions: Notations Types Break-even Analysis Limit of a function: Properties of Limits, Some Standard Limits, One-sided Limits Continuity of functions and its properties.
Unit – 2
Derivative (Differential Coefficient) of a Function Rules of Differentiation Derivatives of Logarithmic and Exponential Functions Increasing and Decreasing Functions, Convex and Concave functions, Maxima and Minima Applications in Marginal Analysis, Point Elasticity of a Function, Revenue, Cost and Profit Applications.
Unit – 3
Partial Derivatives Total Differential, Chain Rule, Maxima and Minima of functions of two variables, Lagrange’s Multipliers and Constrained Optimization Applications of partial derivatives in Business and Economics – Marginal Analysis, Elasticity of Substitutions, Unconstrained and Constrained Bivariate and Multivariate Optimization.
Unit – 4
Indefinite and Definite Integral: Rules and Techniques Applications to Marginal Analysis, Maximizing Sales and Profits over Time, Consumer’s and Producer’s Surplus, The Learning Curve, Investment and Capital Formation.
Unit – 5
Linear Programming – Graphic and Simplex Methods Primal-Dual Optimal Solutions Non-linear Programming – Kuhn-Tucker Condition and its economic interpretations Introduction to Dynamic Programming.

To assimilate the interconnections between Mathematics and Economics

To understand and assess the fundamental procedures of optimization techniques

To analyze the applications of optimization principles in Economics and Business

To comprehend and evaluate the different schools of thought associated with Optimization starting with the classical school to dynamic programming

On successful completion of the course, students will be able to:
1. Identify and understand the rationale of optimization techniques as a mathematical model
2. Apply the techniques of optimization in Economics, Business, and Finance
3. Assess the importance of calculus application in understanding fundamentals of Micro and Macroeconomics laws and theories

Sydaster K. Hammond P., Storm A, and Carvajal A., Essential Mathematics for Economic Analysis, Pearson , 5th Edition, 2016, Essential Mathematics for Economic Analysis, Pearson , 5th Edition, 2016

Chiang A., and Wainwright K., Fundamentals of Mathematical Economics, Mc-Graw Hill , 2005

Dixit A. K., Optimization in Economic Theory, Oxford University Press , 2nd Edition, 1990

Intrilligator M. D., Mathematical Optimization and Economic Theory, Prentice-Hall , 2002