Question

Explain the application of derivatives in business management

Answer 1

Answer:

The derivative is defined as something which is based on some other thing. In Mathematics, Derivative is an expression that gives the rate of change of a function with respect to an independent variable. Derivatives have various applications in Mathematics, Science, and Engineering.

Answer 2

The application of derivatives in business management  is used for finding the rate of change in quantity of a product in respect to other or it can be used for finding the changes in profits in business due to change in certain variables

Explanation:

• Derivatives are method which are used in daily life to a value of a certain asset or instrument due to the changes in another variable function of the instrument. The derivatives are analysed after the changes have taken place.
• The derivatives are used in business management a way to optimize profits since the derivatives help with understanding the methods of increasing or decreasing the price of commodities for increasing revenue. It helps to solve problems of finding the maximum and minimum profits
• The business companies use the method of  cost function for setting the prices of the commodities. They are able to derive the cost when the marginal cost is given and to derive the  revenue when marginal revenue is given.

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