New Zealand
Level 8 - NCEA Level 3

# Small changes and marginal rates

Lesson

An application of differentiation in the world of economics is that which surrounds marginal cost, marginal revenue and marginal profit.

All of these relate to an instantaneous rate of change (which we now know to be called the derivative) of some cost, revenue or profit functions.

Definitions

• Marginal Cost: the derivative of the cost function with respect to the production level
• Marginal Revenue: the derivative of the revenue function with respect to the production level
• Marginal Profit: the derivative of the profit function with respect to the production level

### Outcomes

#### M8-11

Choose and apply a variety of differentiation, integration, and antidifferentiation techniques to functions and relations, using both analytical and numerical methods

#### 91578

Apply differentiation methods in solving problems