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Module Specifications

Archived Version 2007 - 2008

Module Title	Business Mathematics 1
Module Code	MS136
School	School of Mathematical Sciences
Online Module Resources
Module Co-ordinator	Dr Brien Nolan	Office Number	X138F
Level	1	Credit Rating	5
Pre-requisite	None
Co-requisite	None

Module Aims

The principal aim of this module is to equip students with the skills required to analyse and interpret economic and business situations under conditions of change in a rigorous quantitative manner. This involves primarily the study of calculus (the mathematics of change) and its applications to the construction, analysis, synthesis and interpretation of mathematical models of economic and business phenomena.

Learning Outcomes

On successful completion of the module, students will be able to

Work with mathematics with an increased degree of confidence;

Interpret graphs of economic functions;?Construct such graphs for specific classes of mathematical functions, using differential calculus when required;

Construct, analyse and interpret simple mathematical models of problems in economics and business using these classes of mathematical functions;
Use differential calculus to pose, solve and interpret optimisation problems in economics, business and the social sciences;
Interpret and apply the derivative of economic functions (marginal functions);
Apply and interpret the compound interest formula in situations involving the changing value of money over time (interest payments, discounting and investment appraisal).
Pose, solve and interpret constrained optimisation problems using Lagrange multipliers.

Indicative Time Allowances
	Hours
Lectures	2
Tutorials	1
Laboratories	0
Seminars	0
Independent Learning Time	72

Total	75
Placements
Assignments

NOTE

Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.

Indicative Syllabus

Functions and their graphs. Mathematical functions and their graphical representation. Interpretation of graphs. Linear and quadratic functions. Simultaneous linear equations. Economic applications: supply and demand; revenue, cost profit; production functions; national economy models.
Derivatives. Slopes of lines, curves and the definition of the derivative. Marginal functions and their applications. Methods of differentiation. Drawing graphs using the derivative. Elasticity.
Optimisation. Solving max/min problems using the derivative. First and second derivative tests for extreme values.
Partial Derivatives. Economic models involving functions of several variables. Partial derivatives. Utility functions, isoquants and indifference curves. Constrained optimisation using Lagrange multipliers.
The time value of money. Percentages. The compound interest formula. Discounting and investment appraisal – net present value and yield.