This document discusses key concepts related to rates of change and derivatives: 1) It defines average rate of change (ARC) as the slope of a secant line on a graph or using the slope formula algebraically, and instantaneous rate of change (IRC) as the slope of the tangent line. 2) It introduces the difference quotient as a way to define ARC and IRC algebraically without a graph by taking the limit as h approaches 0. 3) A derivative is defined as a function that gives the IRC, allowing it to be evaluated at any point without graphing by taking the limit of the difference quotient.