Integration of math in business and commerce

May 18, 2022

Importance of math in business

When it comes to business, the concept of integration is often used. Integrals in mathematics can help with determining total revenue, costs, and profits. It is also used to manage customer and producer surplus and is also part of the Lorenz Curve, which is a representation of income distribution within a population.

The use of math in business is more important than many think and as a student in college, you will have to study different areas such as calculus. Almost all areas of a company will use some type of math. Here, we take a look at how math plays a role and can help with the success of any business.

How integrals are used in business

There are many ways in which integrals in economics and business are used. Integration is often the option for solving problems that are related to supply and demand as well as managing money flow.

When selling products, it is important for a company to set a unit price based on the demand for a product in a market. Integral problems and solutions are essential for the success of any business, Managing supply and demand is just one of the applications of integrals that are used. Integral applications are also used to compute the continuous money flow problems that may be encountered. 

In regards to money flow, the problems can include repaying debts or deposits that are made on a monthly basis. When the time between deposits or payments is a short interval, the money can be considered to be flowing continuously. Application integration is simply the act of using data or a function from one business application to another application. Today, businesses rely on many systems to increase growth and improve performance. 

Some other ways in which application integration is used within a business  include:

    • Aiding in mergers and acquisitions
    • Enforcing compliance
    • Removes errors and repetitive tasks performed by employees
    • Improving productivity
    • Increasing visibility of data using real-time updates

Importance of math and calculus as business courses

Many people may not think that math will be required when enrolling in a business program at a university. The application of calculus is more prominent than many believe. Students who want to pursue a business degree will have to take calculus courses that teach how to apply this type of math in a company setting or situation, such as maximizing profits, finding the value of an income stream, or determining demand. Integral calculus is used to complete calculations that will determine the optimal prices or costs that will maximize profits.

Aside from taking a commercial calculus course, elementary math knowledge will be needed to have an understanding of commerce. Every company uses mathematics to manage operations. It is heavily relied on in the areas of accounting, financial analysis marketing, inventory management, and sales forecasting.

Conclusion

No matter what type of company is operating, mathematics will always be an important role in management and achieving success. Business math will be used to record and manage operations. As a student, you will often be required to take Business Calculus as well as Business Statistics. Both of these address real-life problems and through coursework, you will find solutions to those problems that will help the company grow and meet the needs and demands of consumers. 

While basic math knowledge is required, most students who want a career in management or economics will want to focus on calculus as it plays a major role in operating any company. By being able to determine marginal revenue and cost, managers can increase profits. When marginal revenue is more than the marginal cost, there will be profits generated.

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