In general the two related variables x and y are such that values of y depend on the values of x, then x is called independent variable and y is called dependent variable.

ECONOMIC FUNCTIONS:

1. Demand function: p = f (D)

2. Supply function: p = f (S)

3. Equilibrium: D = S

4. Total Revenue Function: R = p.d

5. Average Revenue Function: AR = R ÷ D = p

6. Total Cost Function: C(x)= FC + V(x), where C equals total production cost, FC is total fixed costs, V is variable cost and x is the number of units.

7. Average Cost Function: AC = C ÷ x

8. Profit function: Profit = R - C

If R is greater than C then profit
If R is less than C then loss
If R = C then break-even point.

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Chapter 1.

Math 1: Functions and their Applications