MA13610 - MATHEMATICS FOR ECONOMICS AND FINANCE 2

Module Identifier	MA13610
Module Title	MATHEMATICS FOR ECONOMICS AND FINANCE 2
Academic Year	2002/2003
Co-ordinator	Dr V Mavron
Semester	Semester 2
Pre-Requisite	MA12610 or MA10110 or MA12010.
Mutually Exclusive	May not be taken at the same time as MA13510.
Course delivery	Lecture	22 x 1 hour lectures
	Seminars / Tutorials	6 x 1hour example classes
Assessment	Semester Exam	2 Hours (written examination)	60%
	Semester Assessment	Course Work:	20%
	Semester Assessment	In-Course Assessment: Open book test	20%
	Supplementary Assessment	2 Hours (written examination)	100%

Learning outcomes

On completion of this module, a student should be able to:

find the first and second order partial derivatives of a function of 2 or 3 variables;
optimize a function of 2 variables using either the substitution method or Lagrange multipliers;
perform basic matrix algebra, find the inverse of 2 by 2 or 3 by 3 matrices and use inverses to solve equations;
evaluate 2 by 2 and 3 by 3 determinants and apply Cramer's rule to solve equations;
reduce a matrix to echelon form, find its rank and solve associated systems of equations;
integrate simple polynomial, rational and exponential functions;
calculate the area under a curve;
find the total cost function given any marginal cost function;
find the total revenue function given any marginal revenue function;
find the consumption and savings functions given either the marginal propensity to consume or the marginal propensity to save.

Brief description

This module continues the thread of MA12610 with optimisation of functions of several variables and Lagrange Multipliers. It also includes basic matrix techniques and simple differential and difference equations. Like MA12610, it will be illustrated with applications to Economics.

Aims

To introduce the basic Mathematical techniques required for degrees involving Economics or Accounting.

Content

1. FURTHER OPTIMIZATION: Constrained optimization in functions of one variable, the interpretation of Lagrange multipliers, unconstrained optimization in functions of more than one variable, constrained optimization in functions of more than one variable.
2. MATRIX ALGEBRA: Simultaneous linear equations, Gaussian reduction, laws of matrix algebra, identity and null matrices, matrix addition and subtraction, scalar multiplica-tion, matrix multiplication, matrix inversion, determinants, determinants and matrix non-singularity, higher-order determinants, matrix inversion using determinants, Cramer's Rule, matrix rank.
3. INTEGRATION: The notion of an integral. Area under a curve. Integration of simple power and exponential functions. Integration of marginal functions.

Reading Lists

Books
** Should Be Purchased
I.Jacques. (1999) Mathematics for Economics and Business. Addison-Wesley 0201427699
** Supplementary Text
E.T.Dowling. (1992) Schaum's outline of theory and problems of introduction to mathematical economics.. McGraw-Hill 0070176744
M.Wisniewski. (1994) Introductory Mathematical Methods in Economics. 2nd. McGraw-Hill 0077091094
A.C.Chiang. (1974) Fundamental Methods of Mathematical Economics. 2nd. McGraw-Hill 0070107807
J Black & J F Bradley. (1990) Essential Mathematics for Economists. 2nd. John Wiley 0471276596