Linear Functions

            Understanding linear functions helps in running a business successfully because one is able to understand changes which are effective. Linear functions helps in understanding the exchange rates changes in equations predictions.  Exchange rates are effective in understanding when the business can conduct a successful trade in the purpose of gaining more.  This additionally helps in understanding mathematical language which is essential in a business (Mankiw, 2016).

            With adequate knowledge on the mathematical language that exists in the real world a business’s fully able to draw predictions on costs. This helps in determining the materials worth as well as the expected revenue with the involvement of operational changes.  Linear functions helps in developing solutions to the issues generated due to various changes. This is because the business in the development of effective plans which helps in running schedules effectively (Mankiw, 2016).

            Linear functions help the business manger in understanding the basic calculations of the business operations.  This is because the developed understanding helps in developing a description of the relationship that exists between the real world and the business market. This helps in business forecasting as the manager can be able to evaluate the market and determine the demand in the market and whether the current operation is suitable. This therefore helps in evaluation various market trends in order to determine those trends that are most effective in terms of profit maximization.  Running an efficient business requires transaction knowledge which is provided by linear functions understanding.  To calculate the equilibrium prices in order to determine how profit can be generated linear functions knowledge and skills is useful.  A linear function provides objective functions and problem solving components which helps in overcoming market issues. This therefore helps in obtaining maximum benefits from the operation of the business since the knowledge is crucial in offering directions (Mankiw, 2016).

 

 

            Reference

Mankiw, N. G. (2016). Business Economics. Cengage Learning.