NAME: JYOTIRMOY

CHATTERJEE

CLASS: 12
SECTION:A
UNIQUE ID:7082709
 Project-1

Topic : Explain the concepts

of increasing and decreasing
function, using geometrical
significance of dy/dx
 Index
SL. SHORT- PG.
NO. DESCRIPION NO.

1 Index 2

2 Functions 3-4

3 Geometrical 5
interpretation of
differentiation
4 Increasing function 6-10

5 Decreasing 10-11
function

6 Monotonic function 12-15

7 Webliography and 16
Bibliography
 Examples of Functions
1. y = 3x-1

2. y = x2
 Functions

In mathematics, a function from a set X to a set Y is an assignment of an

element of Y to each element of X. The set X is called the domain of the
function and the set Y is called the codomain of the function. Functions
were originally the idealization of how a varying quantity depends on
another quantity. For example, the position of a planet is a function of
time. Historically, the concept was elaborated with the infinitesimal
calculus at the end of the 17th century, and, until the 19th century, the
functions that were considered were differentiable (that is, they had a
high degree of regularity). The concept of a function was formalized at
the end of the 19th century in terms of set theory, and this greatly
enlarged the domains of application of the concept.

A function from a set X to a set Y is an assignment of an element of Y to

each element of X. The set X is called the domain of the function and the
set Y is called the codomain of the function.

A function, its domain, and its codomain, are declared by the notation f:
X→Y, and the value of a function f at an element x of X, denoted by
f(x), is called the image of x under f, or the value of f applied to the
argument x.

Functions are also called maps or mappings, though some authors make
some distinction between "maps" and "functions".
 Examples of Non-Functions

1. x2 +y2 = 9

Not a function because if x = 0, then y = ±5

2. y2 = x

Not a function
Two functions f and g are equal if their domain and codomain sets are
the same and their output values agree on the whole domain. More
formally, given f: X → Y and g: X → Y, we have f = g if and only if f(x)
= g(x) for all x ∈ X.

The domain and codomain are not always explicitly given when a
function is defined, and, without some (possibly difficult) computation,
one might only know that the domain is contained in a larger set.
Typically, this occurs in mathematical analysis, where

"a function from X to Y " often refers to a function that may have a
proper subset of X as domain. For example, a "function from the
reals to the reals" may refer to a real-valued function of a real
variable. However, a "function from the reals to the reals" does not
mean that the domain of the function is the whole set of the real
numbers, but only that the domain is a set of real numbers that
contains a non-empty open interval. Such a function is then called
a partial function. For example, if f is a function that has the real
numbers as domain and codomain, then a function mapping the
value x to the value g(x) = 1/f(x) is a function g from the reals to
the reals, whose domain is the set of the reals x, such that f(x) ≠ 0.
 Geometric Interpretation of Differentiation

The derivative of f(x) at x = x0 is the slope of the tangent line to

the graph of f(x) at the point (x0, f(x0)). But what is a tangent line?
• It is NOT just a line that meets the graph at one point.
• It is the limit of the secant lines joining points P = (x0, f(x0))
and Q on the graph of f(x) as Q approaches P.
•
The tangent line touches the graph at (x0, f(x0)); the slope of the
tangent line matches the direction of the graph at that point. The
tangent line is the straight line that best approximates the graph at
that point.
Given a graph of our function, it’s not hard for us to draw the
tangent line to the graph. However, we’ll want to do computations
involving the tangent line and so will need a computational method
of finding the tangent line.
How do we compute the equation of the line tangent to the graph
of the function f(x) at a point P = (x0, y0)? We know that the
equation of the straight line with slope m through the point (x0, y0)
is y − y0 = m(x − x0), so in the abstract we know the equation of the
tangent line.
To get a specific equation for the line, we’ll need to know the
coordinates x0 and y0 of the point P. If we know x0 we can find y0
= f(x0) by substituting the value x0 in to the expression for f(x). The
second thing we need to know is the slope, m = f’(x0), which we call
the derivative of f.
Definition: The derivative f’(x0) of f at x0 is the slope of the
tangent line to y = f(x) at the point P = (x0, f(x0).
 What can the derivative tell us about the nature of the
function?

We know that the slope of a function at a point is nothing but the first
derivative of the function at that specified point. Further, the sign of the
derivative can tell us whether when the function is increasing in that
interval or decreasing. If dy/dx>0, then the function is said to be an
increasing function. Similarly, if dy/dx<0, then the function is said to be
a decreasing function. A function can be increasing in certain intervals
and decreasing in others. Let us discuss this further in the next section.

What is an increasing function?

• A function is increasing on an interval if for any x1 and x2 in the

interval, where x1 < x2 implies f(x1) < f(x2).

• The derivative of a function may be used to determine whether the

function is increasing or decreasing on any intervals in its domain.
If f′(x) > 0 at each point in an interval I, then the function is said to
be increasing on I.

! (#! )%!(#" )
• This is so because f’(x) = which is positive for all
#! %#"
values of x1 and x2 since x1 < x2 implies f(x1) < f(x2).
 Properties of Increasing and Decreasing
Functions

Since we know how to check if a function is increasing or

decreasing, let us go through the algebraic properties of
increasing and decreasing functions:

• If the functions f and g are increasing functions on an

open interval I, then the sum of the functions f + g is
also increasing on this interval.

• If the functions f and g are decreasing functions on

an open interval I, then the sum of the functions f + g
is also decreasing on this interval.

• If the function f is an increasing function on an open

interval I, then the opposite function -f is decreasing
on this interval.

• If the function f is a decreasing function on an open

interval I, then the opposite function -f is increasing
on this interval.

• If the function f is an increasing function on an open

interval I, then the inverse function 1/f is decreasing
on this interval.

• If the function f is a decreasing function on an open

interval I, then the inverse function 1/f is increasing
on this interval.
• If the functions f and g are increasing functions on an
open interval I and f, g ≥ 0 on I, then the product of
the functions fg is also increasing on this interval.

• If the functions f and g are decreasing functions on

an open interval I and f, g ≥ 0 on I, then the product
of the functions fg is also decreasing on this interval.

Important Notes on Increasing and

Decreasing Functions

• The first derivative of a function is used to check for

increasing and decreasing functions.

• Increasing and decreasing functions are also called

non-decreasing and non-increasing functions.
 Examples of increasing functions

• y = 2+2x

Differentiating the above with respect to x, we get,

𝑑𝑦
= 2, 𝑤ℎ𝑖𝑐ℎ 𝑖𝑠 𝑠𝑡𝑟𝑖𝑐𝑡𝑙𝑦 𝑔𝑟𝑒𝑎𝑡𝑒𝑟 𝑡ℎ𝑎𝑛 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 𝑥
𝑑𝑥
Therefore, it is an example of an increasing function.

• y = 2x3
Differentiating the above with respect to x, we get,
𝑑𝑦
= 2𝑥 & , 𝑤ℎ𝑖𝑐ℎ 𝑖𝑠 𝑠𝑡𝑟𝑖𝑐𝑡𝑙𝑦 𝑔𝑟𝑒𝑎𝑡𝑒𝑟 𝑡ℎ𝑎𝑛 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 𝑥
𝑑𝑥
Therefore, it is an example of an increasing function.
Geometrically also, we can see the f(b)>f(a) for all b>a.
3. y = ex
Differentiating the above with respect to x, we get,
𝑑𝑦
= 𝑒 # , 𝑤ℎ𝑖𝑐ℎ 𝑖𝑠 𝑠𝑡𝑟𝑖𝑐𝑡𝑙𝑦 𝑔𝑟𝑒𝑎𝑡𝑒𝑟 𝑡ℎ𝑎𝑛 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 𝑥
𝑑𝑥
Therefore, it is an example of an increasing function.

What is a decreasing function?

• A function is increasing on an interval if for any x1 and x2 in the

interval, where x1 < x2 implies f(x1) > f(x2).

• The derivative of a function may be used to determine whether the

function is increasing or decreasing on any intervals in its domain.
If f′(x) > 0 at each point in an interval I, then the function is said to
be increasing on I.

! (#! )%!(#" )
• This is so because f’(x) = which is negative for all
#! %#"
values of x1 and x2 since x1 < x2 implies f(x1) > f(x2).
 Examples of decreasing functions

1. y = e-x
Differentiating the above with respect to x, we get,
𝑑𝑦
= −𝑒 %# , 𝑤ℎ𝑖𝑐ℎ 𝑖𝑠 𝑠𝑡𝑟𝑖𝑐𝑡𝑙𝑦 𝑙𝑒𝑠𝑠 𝑡ℎ𝑎𝑛 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 𝑥
𝑑𝑥
Therefore, it is an example of a decreasing function.

2. y = -lnx
Differentiating the above with respect to x, we get,
𝑑𝑦
= −1/𝑥, 𝑤ℎ𝑖𝑐ℎ 𝑖𝑠 𝑠𝑡𝑟𝑖𝑐𝑡𝑙𝑦 𝑙𝑒𝑠𝑠 𝑡ℎ𝑎𝑛 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 𝑥
𝑑𝑥
Therefore, it is an example of a decreasing function.
 What are Monotonic Functions?

· Functions are known as monotonic if they are

increasing or decreasing in their entire domain.

· This means that all the above given examples for

increasing and decreasing functions are also applicable to
monotonic function.
· However, not all increasing or decreasing functions can be
said to be monotonic.

· This is so because if a function is increasing on one

interval and decreasing on another then they do not
satisfy the condition of monotonicity.

· Functions are said to be monotonic if they satisfy the

condition that the first derivative of the function is ≥ 0 or ≤ 0,
for all values of x.

For a function y = f(x) to be monotonically increasing dy/dx ≥ 0

for all such values of interval (a,b) and equality may hold for
discrete values of x.

For a function y = f(x) to be monotonically decreasing dy/dx ≤ 0

for all such values of interval (a,b) and equality may hold for
discrete values of x.
 What are Non-monotonic Functions?

Functions that do not satisfy the condition of

monotonicity are known as Non-monotonic functions i.e.
they are neither strictly increasing nor decreasing.

Examples of Non-monotonic functions

1. y = sinx
As we can see from the graph attached , the function is
increasing over certain intervals and decreasing over
others. Therefore, it is a non-monotonic function.

2. y = 3x2
As we can see from the graph attached , the function is
increasing over certain intervals and decreasing over
others. Therefore, it is a non-monotonic function.
• 𝑦 = |𝑥 |

As we can see from the graph attached , the function

is increasing over certain intervals and decreasing
over others. Therefore, it is a non-monotonic function.

• 𝑦 = 𝑥4
As we can see from the graph attached , the function
is increasing over certain intervals and decreasing
over others. Therefore, it is a non-monotonic function.












Examples of Monotonic functions

1. y = 2x+4
As we can see from the graph attached , the function is
increasing over entire intervals. Therefore, it is a
monotonic function.

2. y = ex
As we can see from the graph attached , the function is
increasing over certain intervals and decreasing over
others. Therefore, it is a non-monotonic function.

Webliography and Bibliography

Websites used:
1. Cliffnotes.com
2. Sparknotes.com
3. Geogebra.com
4. Wolframmathworld.com

Book Used:

1)R.D.Sharma

2)M.L.Agarwal

3)Cengage
 Project-2

Topic : Revenue(R),Average
Revenue(AR) and Marginal
Revenue(MR).
Give their mathematical
interpretation using the concept
of increasing and decreasing
function.
 Index
SL. SHORT- PG.
NO. DESCRIPION NO.

1 Index 2

2 Introduction to revenue 3-4

3 Total revenue 5-8

4 Average revenue 9-11

5 Marginal revenue 12-13

6 Webliography and 14
Bibliography

6 acknowledgement 15
 Introduction to revenue

Revenue is how much money a business brings in by selling its

goods or services at a certain price. Revenue is the starting point
of a company's income statement that will determine how much
net income it makes after expenses, taxes, and interest are taken
into consideration. It is one of the most important line items for a
business.

Revenue is a form of income that is earned by the sale of

goods or services. Gross revenue is the revenue earned
without subtracting costs and expenses related to the
revenue, such as overhead, wages, commissions, costs of
production, and taxes. Net revenue is the income left over
after you have paid all the costs and expenses related to
earning the revenue. Revenue is reported on your income
statement.

Revenue is not the equivalent of profit. If the costs of

generating the revenue exceed the income earned from the
sales, then you have lost money instead of making money.
Consequently, your income statement can reflect a loss
even if you made millions of dollars of revenue.

Though revenue is one number, there are many different

ways to look at it that can provide different insight that is
helpful to a business or investor. Two of the most common
 KEY TAKEAWAYS

• Companies will continue producing and selling more

goods and services until marginal revenue equals
marginal cost.

• Revenue is the total amount of money a company

brings in from selling its goods and services at a
specific price.

• The starting point for any income statement is revenue

that will eventually lead to net income after expenses
are deducted.

• Total revenue is the full amount of total sales of goods

and services. It is calculated by multiplying the total
amount of goods and services sold by their prices.

• Marginal revenue is the increase in revenue from

selling one additional unit of a good or service.
 Total Revenue

Total revenue is the full amount of total sales of goods and

services. It is calculated by multiplying the total amount of
goods and services sold by the price of the goods and
services. Marginal revenue is directly related to total
revenue because it measures the increase in total revenue
from selling one additional unit of a good or service.
Total revenue is important because, in the effort to grow
profits, businesses strive to maximize the difference
between their total revenues and total costs. Understanding
the subtleties of the relationship between revenues and
costs distinguishes the best business managers from the
lesser ones because while increasing production leads to
an increase in sales and total revenue, there are also costs
involved with increasing production.

Marginal revenue is important because it measures

increases in revenue from selling more products and
services. Marginal revenue follows the law of diminishing
returns, which states that any increases in production will
result in smaller increases in output. Meaning the optimal
level has passed. Because it costs money to make and sell
an additional unit, as long as marginal revenue is above
marginal cost, then a company is making profits. Once the
marginal revenue equals marginal cost, it makes no sense
for a company to produce or sell more units of its products
or services.
When a company's marginal revenue is below its marginal
cost, it tends to follow the cost-benefit principle and stop
production as no benefit will arise from increased
production.

Calculation of Total Revenue

The calculation of total revenue frequently takes timetables
into account. A restaurateur, for example, might tabulate
the number of hamburgers sold in an hour, or the number
of orders of medium-sized french fries sold throughout the
business day. In the latter case, the total daily revenue
would be the quantity (Q) of fries sold—say 300, multiplied
by the price (P) per unit—say $2, per day. Therefore, the
simple formula for this calculation would be:

TR=Q×P

where:
TR=total revenue
Q=quantity
P=price

With the values plugged into the equation, Total revenue is

$600—figured by the simple arithmetic of 300 X $2.
 Example of Total Revenue

Continuing with the same example, consider what happens

if the restaurateur drops the price of a unit of french fries to
$1, and he heavily advertises the new discounted price.
This could result in a bump in sales—let’s say to 500 units
per day. Consequently, the total revenue bumps up to $500
in sales.

Total revenue changes with respect to price, and quantity

can be visually demonstrated on a graph, in which a
demand curve is drawn, that signals the price and quantity
that would maximize total revenue.

To calculate marginal revenue, divide the change in total

revenue by the change in the quantity sold. Therefore, the
marginal revenue is the slope of the total revenue curve.
Use the total revenue to calculate marginal revenue.

For example, suppose a company that produces toys sells

one unit of product for a price of $10 for each of its first 100
units. If it sells 100 toys, its total revenue would be $1,000
(100 x 10). The company sells the next 100 toys for $8 a
unit. Its total revenue would be $1,800 (1,000 + 100 x 8).
Suppose the company wanted to find its marginal revenue
gained from selling its 101st unit. The total revenue is
directly related to this calculation. First, the company must
find the change in total revenue. The change in total
revenue is $8 ($1,008 - $1,000). Next, it must find the
change in the toys sold, which is 1 (101-100). Thus, the
marginal revenue gained by producing the 101st toy is $8.

The Bottom Line

Total revenue is the total amount of money a company

brings in from selling its goods and services. It determines
how well a company is bringing in money from its core
operations based on demand and price.

Marginal revenue measures the increase in revenues from

selling an additional unit of a good or service, which helps
management determine if it is in the best interest to
produce and sell more. Once the marginal cost of
producing an extra unit is greater the marginal revenue, a
company will halt production as it is not making profits on
the additional units sold.
 What is average revenue?

Average revenue is the mathematical average of revenue

earned per unit or per user. The average revenue per unit
or user (ARPU) allows a company's investors or
management team to analyse revenue generation
capability and forecast future growth. ARPU is a macro-
level measurement tool that is useful to analysts and
management, but it doesn't provide much detailed
information about the units or user base.

When a company only sells one product at one price, the

average revenue of that company's products is the price of
the product. So in many situations, the terms price and
average revenue are synonyms. However, when a
company sells two or more products at two or more prices,
the average revenue is a way to estimate a company's
profits. In this situation, ARPU is essentially the average
price of the units or users.
 Why is the average revenue formula
important?

Many companies use the average revenue formula to

analyse and forecast their revenue. Telecommunication
companies, like cell phone carriers, may use ARPU on a
monthly basis. They use the average revenue formula to
calculate and track the amount of revenue generated for
each cell phone user. Cable companies also calculate
ARPU for their subscription users and use that data
internally, externally, as a comparison to other companies
and for forecasting future revenue. Social media platforms
use average revenue to explain gaps in valuation, track
sources of revenue and report to investors.

How to calculate average revenue

Here are the steps for calculating average

revenue:

1. Collect your data:

Collect a set of data over a specific period in time. For

example, if a company wants to calculate the average
revenue per unit for the last week, it would need the total
weekly revenue for unit sales. If it sold four units in the last
week, its revenue data might look like this:
Unit 1 = $10,000
Unit 2 = $15,000
Unit 3 = $8,000
Unit 4 = $12,000

2. Add the data points

In order to find the total revenue amount and plug it into the
formula, you need to add the four unit amounts together:
$10,000 + $15,000 + $8,000 + $12,000 = $45,000

3. Divide by the number of data points

There are four data points for this example, one for each
unit. You can plug the total revenue of $45,000 and the four
data points into the average revenue formula and then
calculate:
AR = TR / Q
AR = $45,000 / 4
AR = $11,250

4.Analyze the results

The company now knows the average revenue per unit

(ARPU) for the last week was $11,250. They can use this
information to analyse its revenue further or make
forecasting projections.
 Marginal Revenue

The change in total revenue per unit product is called

marginal revenue. It is an additional income per commodity.
Marginal revenue is calculated by dividing the changing rate
of total revenue by changing the rate of Quantity.

If the total revenue of a firm changes by 1000 and the

change in quantity is 5, then the marginal revenue is
200(1000/5). Hence, marginal revenue is the change in total
revenue according to the change of quantity.

Formula

MR=∆TR/∆Q

Where

MR is marginal revenue

TR is total revenue

Q stands for quantity

 How to calculate Marginal revenue

Marginal revenue (MR) is the change in total revenue

resulting from the sale of an additional unit of a commodity.

For example, consider a firm selling 100 units of a

commodity and realizing a total revenue of Rs. 1,000.
Further, it realizes a total revenue of Rs. 1,200 after selling
101 units of the same commodity. Therefore, the marginal
revenue is Rs. 200.

Marginal revenue is also defined as the rate of change of

total revenue resulting from the sale of an additional unit of
a commodity.

Therefore,

𝑀𝑅=Δ𝑇𝑅Δ𝑄
where MR – Marginal revenue, TR – Total revenue, Q –
Quantity of the commodity sold, and Δ – the rate of change.
Further, for one unit change in output, we have

MRn = TRn – TRn-1

Where,

• TRn – the total revenue when the sales are at the rate of ‘n’
units per period.
• TRn-1 – the total revenue when the sales are at the rate of
(n-1) units per period.
Webliography and Bibliography

Websites used:

1. economicsdiscussion.com
2. investopedia.com
3. Geogebra.com

Book Used:

1)R.D.Sharma

2)M.L.Agarwal

3)Cengage
 Acknowledgement

I would like to express my special thanks to my teacher Mrs. M.

Haldar as well as our principal Dr. T. H. Ireland who gave me the

golden opportunity to do this wonderful project on the topic

(Topic), which also helped me in doing a lot of Research and I

came to know about so many new things

I am really thankful to them.

Secondly I would also like to thank my parents and friends who

helped me a lot in finishing this project within the limited time.

THANKS AGAIN TO ALL WHO HELPED ME