Optimization Summary

Business Calculus · Axiom Academy

Key concepts and formulas for finding maximum and minimum values Optimization uses derivatives to find where functions reach their highest or lowest values. At these points, the slope (derivative) equals zero. Solve the constraint for one variable Substitute into the objective function Optimize the resulting single-variable function Find the other variable from the constraint 1. Find the production level that maximizes profit 2. Find the price and quantity that maximize revenue 3. Find the minimum average cost 4. Calculate the EOQ given demand and costs 5. Optimize with a constraint (area, budget, etc.) Review the practice problems in this unit Make sure you can set up problems from word descriptions Practice the derivative rules until they're automatic Work through the unit assessment when ready

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