1. 1.3 Lines in the plane and slope Calculus 9/5/14

2. Warm-up

3. 1.3 Lines in the Plan and Slope (p. 24)

4. 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

5. Slope(p.27)

6. 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

7. Ex. 6 - The cash flow per share for Ruby Tuesday, Inc. was $1.48 in 2001 and $1.71 in 2002. 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 2003. 1) set up problem 2) write equation

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

9. 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

10. 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.

11. Homework assignment – p. 33-35 #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