1.3 Lines in the plane and slope Calculus 9/5/14

Warm-up

1.3 Lines in the Plan and Slope (p. 24)

Marginal cost  what economists call “cost per unit”  The slope of the cost, C, equation  Fixed cost – cost that must be paid for production regardless of the number of units produced

Slope(p.27)

Writing Equationsp.29  Ex. 5 Find the equation of the line that has a slope of 3 and passes through point (1,-2)  Ex. 6 Cash Flow per Share * - Linear interpolation and linear extrapolation

Ex. 6 - The cash flow per share for Ruby Tuesday, Inc. was $1.48 in 2001 and $1.71 in Using this information, write a linear equation that gives the cash flow per share in terms of the year. Then predict the cash flow for ) set up problem 2) write equation

Helpful information  Linear interpolation vs. linear extrapolation  Equations of Lines Table p. 30  Parallel and Perpendicular Lines p.31

Depreciation  Linear Depreciation – assumes an asset will lose the same amount of value each year  Salvage value – the value at the end of the assets useful life  Book value – the difference between the original value and the total amount of depreciation accumulate to date

Ex. 8 – Your company has purchased a $12,000 machine that has a useful like of 8 years. The salvage value at the end of 8 yeas is $2,000. Write a linear equation that describes the book value of the machine each year.

Homework assignment – p #1-89 by 4’s  use graphing calculator to graph a model when necessary  If the book does not provide a key for the problem (t = 2 represents 2002), then make sure to include your own