Real World: Optimization in Business

AP Calculus · Axiom Academy

Real World Optimization in Business How derivatives help companies maximize profit and minimize cost Revenue depends on price and quantity: Since , this is indeed a maximum. This technique — called marginal analysis — is used by businesses worldwide. The derivative of profit with respect to price (or quantity) tells you exactly where the sweet spot is. Price too low and you leave money on the table; price too high and you lose customers.

This is the written version of the interactive lesson above. See the full AP Calculus course.