Business Mathematics

Faculty of Business Management and Social Sciences

Version 13.0 of 10/13/2017

22B0923

Business Mathematics

• Betriebswirtschaft und Management - WiSo (B.A.)
• Internationale Betriebswirtschaft und Management (B.A.)
• International Management (B.A.)

1

This module applies important formal and quantitative methods from Business Mathematics to Topics from Economics.

1. Financial mathematics
   1.1 Successions and series
   1.2 Compound computation of interest
   1.3 Annuity computation
   1.4 Amortisation computation
   1.5 Leasing
2. Differential calculus I
   2.1 Introduction
   2.2 Determination of extreme values
   2.3 Economic applications
   2.3.1 Profit maximisation
   2.3.2 Law of diminishing returns
   2.3.3 Least cost combination
   2.3.4 Production maximisation
   2.3.5 Cost functions
   2.3.6 Economic order quantity
   2.4 Elasticities
3. Differential calculus II
   3.1 Partial derivatives
   3.2 Partial elasticities
   3.2 Homogeneity
   3.3 Cobb-Douglas production functions
   3.3 Restrictive extreme values
   3.3.1 Lagrangian method
   3.3.2 Economic applications
4. Linear algebra
   4.1 Linear system of equations
   4.2 Economic applications
   4.2.1 Markov chains
   4.2.2 Input-output analysis
   4.2.3 Multi-stage production processes
5. An aside: Linear optimisation
   5.1 Setting the task
   5.2 Simplex algorithm
   5.3.A selected problem from discrete optimisation

Knowledge Broadening
Students who successfully complete this module are able to
- handle economic functions analytically,
- offer solutions for economic extreme values with and without auxiliary condition with the assistance of differential calculus and
- set up linear equation systems based on economic issues.
Knowledge Deepening

Instrumental Skills and Competences

Communicative Skills and Competences

Systemic Skills and Competences

Lectures, exercises, self-study

Passed placement test or preparatory course mathematics (arithmetic, algebra, differential calculus)

Faatz, Andreas

• Hübner, Ursula Hertha
• Seyfert, Wolfgang
• Faatz, Andreas
• Hirschfeld, Gerrit
• Markovic-Bredthauer, Danijela
• Neumann, Ludger

5

(1) Pemberton, M.: Mathematics for economists: an introductory textbook. University of Toronto Press, 2011.

(2) Renshaw, G.: Maths for economics. Oxford University Press, 2012.

(3) Führer, C.: Wirtschaftsmathematik. Kiehl, 2012.

(4) Tietze, J.: Einführung in die angewandte Wirtschaftsmathematik: Das praxisnahe Lehrbuch-inklusive Brückenkurs für Einsteiger. Springer-Verlag, 2013.

Two-Hour Written Examination

2-hour written examination; parts of the exam may be without a calculator

1 Term

Only Winter Term

English