Derivatives and Homotheticity

Marginal reasoning is differentiation: marginal utility, marginal product and marginal cost are all derivatives. This module tests whether the agent can differentiate the functional forms used throughout the benchmark, and whether it can recognise a homothetic function, one where scaling every input by the same factor leaves the trade-offs between inputs unchanged.

Elements

1. Derivatives

   Differentiating a linear, quadratic or cubic polynomial with respect to x.

2. Exponents

   Raising a decimal number to a whole or fractional power.