## Applications of Calculus in Commerce and Economics

### Total Cost

Where TC is Total Cost, x is number of units, TFC is Total Fixed Cost and TVC is Total Variable Cost

### Demand Function

If demand of item depends on the price of the item

If price of the item depends on the deman of the item

Where x is demand of the item in x units and p is the price per unit

### Revenue Function

Where AR is Average Revenue

Average profit

### Marginal Cost

Rate of change of total cost with respect to x (number of units of product)
Note:- MC is the approximate cost of one additional unit of output

### Marginal Average Cost (MAC)

Average Cost

MAC is the rate of change of average cost (AC)with respect to x

### Marginal Revenue (MR)

R(x) is the revnue received on selling x units of a product
MR is the rate of change of R(x)with respect to x

Note:- MR is the approximate revenue of one additional unit of sale of product

### Two Types of Economies

#### Competitive Economy

p is determined by market and not by producer hence p is constant which implies that

#### Monopolistic Economy

p generally decreases with x which implies that