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Business Mathematics II

bbasemester 2

Business Mathematics II

Subject Code: MTH 202

Course Title: Business Mathematics II

Course No: MTH 202

Nature of Course: Theory & Practical

Full Marks: 100

Pass Marks: 50

Credit Hours: 3

Course Description

This course deals on integration and applications in production, first-order differential equationsand applications, dynamics of market price, linear inequalities and linear programming, linearalgebra and applications, numerical methods for solving systems of linear equations, input/outputanalysis, functions of several variables and their applications in business and economics,difference equations and dynamic economic analysis.

Course Objective

The course introduces mathematical techniques through examples of their application toeconomic and business concepts. It also tries to get students tackling problems in economics andbusiness using these techniques as soon as possible so that they can see how useful they are.

Course Contents

Unit 1: Integration and applications   8 LHs
Concept of integration, Techniques of integration (Standard form, substitution method andintegration by parts), Integration of algebraic, logarithmic and exponential functions,
Methods of evaluating definite integrals, Application of integration in business andeconomics ( including consumers’ surplus and producers’ surplus), Area under a curve.

Unit 2: Linear inequalities and linear programming    6 LHs
Linear Inequalities in two variables, Introduction to linear programming problem,Formulation of linear programming problem, Methods of solving linear programingproblems: Graphical method, Simplex method (two variables), Duality and standardminimization linear programing problems.Online: Simplex method

Unit 3: Linear algebra and applications    7 LHs
Introduction to matrices and types of matrices, Operation on matrices: Addition andsubtraction of matrices, Scalar multiplication of a matrix, Multiplication of matrices,Transpose of matrix, Determinant of a square matrix, Minors and cofactors of matrix,Singular and non-singular of matrix, Adjoint and inverse matrices, Elementary rowoperations, Methods of solving linear equations: Cramer’s rule, Inverse matrix method(Application of linear equation for solving business and economics related problems), Gauss elimination method and Gauss- Jordan method, Input/output analysis, Technologycoefficient matrix, Hawkins-Simon conditions for the viability of the system.Lab. Work: Excel for linear algebraOnline: Gauss elimination method for solving system of linear equations, Gauss-Jordanmethod for solving system of linear equations and finding inverse matrices.

Unit 4: Functions of several variables 9 LHs
Functions of several variables, Applications of functions of two variables in business andeconomics, Partial differentiation, Applications of partial differentiation, Elasticity ofdemand, Utility, Production, Graphical Representations, Unconstrained optimization,constrained optimization and Lagrange multipliers.

Unit 5: First-order differential equations and applications 9 LHs
Introduction to differential equation, Order and degree of differential equation, Solution ofdifferential equations, First-order linear differential equations with constant coefficient and constant term, Differential equation for limited and unlimited growth, Dynamics ofmarket price, First order differential equation with variable- coefficient and variable term,
Exact differential equations, Nonlinear differential equations of the first order and firstdegree.

Unit 6: Dynamic economic analysis and Difference equations 9 LHs
Introduction to difference equations, Solution of first order difference equations(homogeneous and non-homogeneous), Economic applications of first order differenceequation: Cobweb model, Lagged Keynesian macroeconomic model, Duopoly priceadjustment.

Reference Books

Alpha C. Chiang, Fundamental Methods of Mathematical Economics, McGraw-Hill, Inc.
Frank S. Budnick, Applied Mathematics for Business, Economics, and the Social Sciences, McGraw-Hill Ryerson Limited.
G. S. Monga, Mathematics for Management and Economics, Vikas Publishing House Pvt.
Ltd., New Delhi.
Mike Rosser, Basic Mathematics for Economists, Routledge Taylor & Francis Group. Ronald J. Harshbarger, James J. Reynolds, Mathematical Applications for the Management, Life, and Social Sciences, Houghton Mifflin Company.
Srinath Baruah, Basic Mathematics and its Application in Economics, Macmillan India Ltd.
Teresa Bradley, Essential Mathematics for Economics and Business, John Wiley & Sons Ltd.
Vassilis C. Mavron, Timothy N. Phillips, Mathematics for Economics and Finance, Springer- Verlag.