The Application of Derivatives in Enhancing Economic Decision-Making

Authors

  • Yao Xiao

DOI:

https://doi.org/10.61173/39v43n25

Keywords:

Derivatives, Profit maximization, Economic analysis

Abstract

This paper explores the specific application of derivatives in economic analysis, aiming to provide an effective mathematical tool for economic analysis to improve decision-making efficiency and accuracy. Through two specific cases - the profit maximization problem of fast-moving consumer goods companies and the profit maximization problem of retail enterprises, it can be demonstrated how to use derivatives to solve and analyze economic models, and then propose corresponding optimization suggestions. In addition, through detailed mathematical derivation and data analysis, how derivatives can help enterprises optimize decision-making and improve economic efficiency was analyzed. Research has shown that derivatives, as an important tool in economic analysis, can effectively enhance the scientifically and accuracy of decision-making.

References

[1] Xiong Yang & Lifen Zhou. (2023). Application of derivatives in economics analysis: Taking demand elasticity calculation as an example. Journal of Liaoning Normal Colleges(Natural Science Edition), 25(4), 6 – 11.

[2] Duc Hong Vo, Phuc Van Nguyen, Ha Minh Nguyen, Anh The Vo & Thang Cong Nguyen. (2020). Derivatives market and economic growth nexus: Policy implications for emerging markets. The North American Journal of Economics and Finance, 54.

[3] Wang Hai-zIou. (2014). Derivative theory in the application of economic analysis: Economic and Social Sciences Research. Silicon Lake Vocational and Technical College, 142(9), 341-342.

[4] Zhang Xiao-li & Lipin Dong. (2016). The Application of Derivatives in Economic Analysis: applied technology. Technological style, 156(8), 178.

[5] LIU Rong-hua, YANG Chun-yan & SUN Yan-wei. The application of differential quotient in economic analysis. Journal of Science of Teachers’ College and University, 30(4), 34-36.

[6] Lin, W., Dean, G. W., & Moore, C. V. (1974). An empirical test of utility vs. profit maximization in agricultural production. American journal of agricultural economics, 56(3), 497-508.

[7] Weersink, A., & Fulton, M. (2020). Limits to profit maximization as a guide to behavior change. Applied Economic Perspectives and Policy, 42(1), 67-79.

[8] Byrnes, J. P. (2002). The development of decision-making. Journal of adolescent health, 31(6), 208-215.

[9] Sahoo, S. K., & Goswami, S. S. (2023). A comprehensive review of multiple criteria decision-making (MCDM) Methods: advancements, applications, and future directions. Decision Making Advances, 1(1), 25-48.

[10] Sari, A. R. (2023). The Impact of Good Governance on the Quality of Public Management Decision Making. Journal of Contemporary Administration and Management (ADMAN), 1(2), 39-46.

Downloads

Published

2024-10-29

Issue

Vol. 2 No. 5 (2024): Volume 2, Issue 5

Section

Articles

License

Copyright (c) 2024 by the authors.

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.