ECON 3101 Lecture #1 (9/8/15)
ECON 3101 Lecture #1 (9/8/15) Econ 3101
U of M
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This 4 page Class Notes was uploaded by Waverly Johnston on Friday September 11, 2015. The Class Notes belongs to Econ 3101 at University of Minnesota taught by in Fall 2015. Since its upload, it has received 191 views. For similar materials see Applied Microeconomics: Consumers, Producers, and Markets in Economcs at University of Minnesota.
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Date Created: 09/11/15
Econ 3101 Lecture notes Week one lecture one 9815 Class info Instructor Ioaquin GarciaCabo Herrero Email garci584umnedu in emails you can address him as Garcia Cabo Officehours Hanson Hall 3101 Thursday 10001200 or by appointment Textbook Nicholson Microeconomic Theory Basic Principles and Extensions 11th edition It is acceptable to use the 10th edition instead of the 11th because the only thing that differs between the two are the questions at the end of the chapters He will not be assigning these questions Course description This class builds on what you learned in ECON 1101 It will give you fundamental tools you will need in future economics courses And although it is mathematically more rigorous than your previous econ classes 3101 is not a math class whew That being said this lecture is all about algebra and calculus I will include some example problems below similar to those we practiced in class Operations with powers This should be simple review but here are some examples to jog your memory atn atn ROOtS and negative exponents xE 6112 W a13 a39t 1at a0 1 Derivatives why do we need them In this course we will be using derivatives to identify slopes minimize costs maximize profits and utility and calculate elasticity Keep in mind 0 Profits are maximized when the derivative 0 The derivative of revenue with respect to quantity is Marginal Revenue MR The derivative of cost with respect to quantity is Marginal Cost MC 0 Remember MRMC Derivatives find f x fx 6x12 f x 72x11 fx cosx f x Sinx fx lnx f x 1x fx 256x f x 256x Remember chain rule If f x 90106 Then f x h x g hx Example f x 8x4 502 90 32 9 01 2y hx 8x4 50 h x 32363 f x 32x3 28x4 50 Partial derivatives We use partial derivatives when we are working with more than one variable but we only want to measure the change in one of these variables rate of change of the function We hold the other variable xed So if we have Partial derivative with respect to x we keep x in the denominator as we 6fx write a x39y This means we are holding y fixed and allowing x to vary 0f any The same is true the other way If we write that means we are holding x fixed and allowing y to vary Integration We will not be going into integration until closer to the end of class but here are a few things to keep in mind Integration allows us to calculate the area under a curve we will need to do this when we have a nonlinear graph 0 In this class we will use integration to measure consumer surplus deadweight loss and other events like losses or profits Integration is easy to calculate if you know how to take derivatives they are the inverse of the derivative see below for example MC 6q 3 TC f 6q 3dq Solutionf6q dq f3dq 9 3q2 3q C System of equations I m sure we all remember these from intro to microeconomics but here s a refresher Equation 1Qd 700 10p Equation 2QS 2 8p 12192 Remember we always set Qd Q5 first 700 1019 8p 12292 9 0 12292 1819 700 Then we use the quadratic equation to easily find p 18 1824700 9 p 2 212 the square root value ends up being around 415 235 sorry I chose weird numbers so Now we can plug 235 into our Qd equation to solve Qd 700 10235 9 465 should be your final answer