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Important concept

  1. By using the formula tex2html_wrap_inline49 and setting h=1, yields

    f'(x0) = (approximately) f(x0 + 1)) - f(x0)


    So, by using profit function terminology, for example, we have

    P'(x0) = (approximately) P(x0 + 1)) - P(x0)


    Note that P(x0+1)-P(x0) is the Actual profit for the (x0+1) unit. So, we are using tex2html_wrap_inline57 to approximate the the Actual profit for the (x0+1) unit. For example, if we want to approximate the profit of the 53rd unit, then we use tex2html_wrap_inline63
  2. Suppose tex2html_wrap_inline65 (assuming x1<x2) then what should one do? Should one increase the number of units produced?
  3. Suppose tex2html_wrap_inline69 (assuming x1<x2) then what should one do? Should one increase the number of units produced?
  4. Suppose tex2html_wrap_inline73 (assuming x1<x2) then what should one do? Should one increase the number of units produced?

Wei-Chi Yang
Tue Oct 22 23:21:50 EDT 1996