In this module, we use the concept of limits to demonstrate that the derivative is the slope of a curve. We use several common derivatives to find the maximums and minimums of functions. The local optimum is found by taking the derivative of a function, setting it equal to zero, and solving. If the second derivative is negative at this point, the local optimum is a maximum. If the second derivative is positive at this point, the local optimum is a minimum. If the second derivative is zero, the point is called a point of inflection.

Derivatives can be used to find the EOQ, which minimizes total inventory cost. A total revenue function is based on a demand curve. The derivative of this shows where revenues are maximized.