Mathematics for Economics and Business Section 3.

Calculus of one variable functions

3.1. Limit of a sequence
Let be given nonempty set 𝑋 ≠ ∅ and the set of natural numbers ℕ = {1, 2, 3, … }.
Definition 3.1. An infinite sequence is a function whose domain is the set of all natural numbers:
𝑎 ∶ ℕ → 𝑋, ∀𝑛 ∈ ℕ: 𝑎 ∶ 𝑛 ↦ 𝑎(𝑛) = 𝑎𝑛 ∈ 𝑋.
Remarks
 the element 𝑎𝑛 is called a term of a sequence; 𝑎1 is the first term, 𝑎2 the second term, and 𝑎𝑛 the 𝑛-th
term,
 if 𝑋 ⊂ ℝ, then (𝑎𝑛 ) is a number sequence.
Example 3.1.
1
𝑎𝑛 = 𝑛 𝑏𝑛 = 𝑐𝑛 = 2 𝑑𝑛 = (−1)𝑛
𝑛
𝒏 1 2 3 4 5 𝒏 1 2 3 4 5 𝒏 1 2 3 4 5 𝒏 1 2 3 4 5
𝒂𝒏 𝒃𝒏 𝒄𝒏 𝒅𝒏

lim 𝑎𝑛 = ⋯ lim 𝑏𝑛 = ⋯ lim 𝑐𝑛 = ⋯ lim 𝑑𝑛 = ⋯

𝑛→∞ 𝑛→∞ 𝑛→∞ 𝑛→∞

Let a sequence (𝑎𝑛 ) ⊂ ℝ be given.

Definition 3.2. (limit of sequence) The number 𝐿 ∈ ℝ is a limit of a sequence (𝑎𝑛 ) and we write
lim 𝑎𝑛 = 𝐿 iff ∀𝜀 > 0 ∃𝑛0 ∈ ℕ ∪ {0}: ∀𝑛 > 𝑛0 |𝑎𝑛 − 𝐿| < 𝜀.
𝑛→∞

The above definition says that 𝐿 is a limit of the sequence (𝑎𝑛 ) if and only if for every number 𝜀 > 0 there
exists a number 𝑛0 ∈ ℕ ∪ {0} (which will depend on 𝜀) such that for all 𝑛 > 𝑛0 we have
|𝑎𝑛 − 𝐿| < 𝜀. The limit of a sequence (𝑎𝑛 ) is, intuitively, the unique number or point 𝐿 (if it exists) such that
the terms of the sequence become arbitrarily close to 𝐿 for large values of n.

Remarks
 lim 𝑎𝑛 = 𝐿 means that the number 𝐿 is a limit of a sequence (𝑎𝑛 ) as 𝑛 tends to infinity.
𝑛→∞
 If the limit exists, then we say that the sequence is convergent and that it converges to 𝐿.
 A sequence which has no limit is called a divergent sequence.
 If 𝐿 ∈ ℝ (is finite), then the limit is called proper.
 If 𝐿 = +∞ or 𝐿 = −∞, then the limit is improper.
 A convergent sequence has only one limit.

Theorem 3.1. (properties of convergent sequences)

If the sequences 𝑎𝑛 and 𝑏𝑛 are both convergent and lim 𝑎𝑛 = 𝑎, lim 𝑏𝑛 = 𝑏, then sequences (𝑎𝑛 + 𝑏𝑛 ),
𝑛→∞ 𝑛→∞
𝑎𝑛
(𝑎𝑛 − 𝑏𝑛 ), (𝑎𝑛 ∙ 𝑏𝑛 ), (𝑏 ) are convergent and:
𝑛
a) lim (𝑎𝑛 ± 𝑏𝑛 ) = lim 𝑎𝑛 ± lim 𝑏𝑛 = 𝑎 ± 𝑏
𝑛→∞ 𝑛→∞ 𝑛→∞
𝑎 lim 𝑎𝑛 𝑎
b) lim (𝑎𝑛 ∙ 𝑏𝑛 ) = lim 𝑎𝑛 ∙ lim 𝑏𝑛 = 𝑎 ∙ 𝑏 c) lim (𝑏𝑛) = 𝑛→∞ = 𝑏, (if 𝑏𝑛 ≠ 0, 𝑏 ≠ 0)
𝑛→∞ 𝑛→∞ 𝑛→∞ 𝑛→∞ 𝑛 lim 𝑏
𝑛→∞ 𝑛

 Beata Ciałowicz ~ 13 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
Theorem 3.2. (limits of basic sequences)
−∞, 𝑎 < 0 1 𝑛
1. lim 𝑎 ∙ 𝑛 = { 6. lim (1 + 𝑛) = 𝑒 (𝑒 = 2,718281828459 … )
𝑛→∞ +∞, 𝑎 > 0 𝑛→∞
1
2. lim 𝑛𝑎 = 0 for 𝑎 > 0
𝑛→∞
0, 𝑎 ∈ (0,1)
𝑛
3. lim 𝑎 = { 1, 𝑎 = 1
𝑛→∞
+∞, 𝑎 > 1
𝑛
4. lim √𝑎 = 1 for 𝑎 > 0
𝑛→∞
𝑛
5. lim √𝑛𝑘 = 1
𝑛→∞

Theorem 3.3. (properties of limits)

𝑎 𝑎
1. If lim 𝑎𝑛 = ±∞ and 𝑎 ∈ ℝ, then lim = [±∞] = 0
𝑛→∞ 𝑛→∞ 𝑎𝑛
1 1
2. If lim 𝑎𝑛 = 0 and 𝑎𝑛 > 0, then lim = [ + ] = +∞
𝑛→∞ 𝑛→∞ 𝑎𝑛 0
1 1
3. If lim 𝑎𝑛 = 0 and 𝑎𝑛 < 0, then lim = [0− ] = −∞
𝑛→∞ 𝑛→∞ 𝑎𝑛
4. If lim 𝑎𝑛 = +∞ and lim 𝑏𝑛 = +∞, then lim (𝑎𝑛 + 𝑏𝑛 ) = [(+∞) + (+∞)] = +∞
𝑛→∞ 𝑛→∞ 𝑛→∞
5. If lim 𝑎𝑛 = −∞ and lim 𝑏𝑛 = −∞, then lim (𝑎𝑛 + 𝑏𝑛 ) = [(−∞) + (−∞)] = −∞
𝑛→∞ 𝑛→∞ 𝑛→∞
6. If lim 𝑎𝑛 = +∞ and lim 𝑏𝑛 = +∞, then lim (𝑎𝑛 ∙ 𝑏𝑛 ) = [(+∞) ∙ (+∞)] = +∞
𝑛→∞ 𝑛→∞ 𝑛→∞
7. If lim 𝑎𝑛 = +∞ and 𝑎 ∈ ℝ, then
𝑛→∞
+∞, 𝑎 > 0
lim (𝑎 + 𝑎𝑛 ) = [𝑎 + (+∞)] = +∞ lim (𝑎 ∙ 𝑎𝑛 ) = [𝑎 ∙ (+∞)] = {
𝑛→∞ 𝑛→∞ −∞, 𝑎 < 0
8. If lim 𝑎𝑛 = −∞ and 𝑎 ∈ ℝ, then
𝑛→∞
−∞, 𝑎 > 0
lim (𝑎 + 𝑎𝑛 ) = [𝑎 + (−∞)] = −∞ lim (𝑎 ∙ 𝑎𝑛 ) = [𝑎 ∙ (−∞)] = { .
𝑛→∞ 𝑛→∞ +∞, 𝑎 < 0

0 ∞
Indeterminate forms: [ ], [ ], [0 ∙ (∞)], [∞ − ∞], [1∞ ], [00 ], [(∞)0 ].
0 ∞

Example 3.2. Calculate the limits of the following sequences:

1) lim (5𝑛2 − 4𝑛 − 7) =
𝑛→∞

2) lim (23 + 8𝑛 + 3𝑛2 − 7𝑛3 ) =

𝑛→∞
2𝑛3 −3𝑛2 +5
3) lim =
𝑛→∞ 1+4𝑛−7𝑛3
5𝑛2 −3𝑛−4
4) lim =
𝑛→∞ 2−4𝑛2 +6𝑛3
3𝑛3 +𝑛−1
5) lim =
𝑛→∞ 5+4𝑛−6𝑛2
𝑛
6) lim ( √2𝑛7 + 3𝑛5 + 7𝑛 + 1) =
𝑛→∞
𝑛
7) lim ( √3𝑛 + 𝑒 𝑛 + 2𝑛 ) =
𝑛→∞

Remark Not all sequences are quite as well behaved as convergent or divergent sequences. Some
sequences do neither of those things. For instance, the sequence 𝑎𝑛 = (−1)𝑛 does not converge or diverge.
It just oscillates. An oscillating sequence may be bounded or unbounded. The sequence above is bounded
because it oscillates between the bounds [−1,1].

 Beata Ciałowicz ~ 14 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
3.2. Limit of function
Elementary functions:
1. A linear function: 𝑓(𝑥) = 𝑎𝑥 + 𝑏, 𝑥 ∈ ℝ (a slope-intercept form), where 𝑎, 𝑏 ∈ ℝ.
2. A quadratic function: 𝑓(𝑥) = 𝑎𝑥 2 + 𝑏𝑥 + 𝑐, where 𝑎 ∈ ℝ\{0}, 𝑏, 𝑐 ∈ ℝ.
3. A polynomial function of degree 𝑛 (𝑛-th degree polynomial) in one variable 𝑥:
𝑃(𝑥) = 𝑎𝑛 𝑥 𝑛 + 𝑎𝑛−1 𝑥 𝑛−1 + ⋯ + 𝑎1 𝑥 + 𝑎0 , where 𝑛 ∈ ℕ, 𝑎𝑛 , 𝑎𝑛−1 , … , 𝑎1 , 𝑎0 ∈ ℝ, 𝑎𝑛 ≠ 0, 𝑥 ∈ ℝ.
𝑃(𝑥) 𝑎𝑛 𝑥 𝑛 +𝑎𝑛−1 𝑥 𝑛−1 +⋯+𝑎1 𝑥+𝑎0
4. A rational function (the quotient of two polynomials): 𝑅(𝑥) = =
𝑆(𝑥) 𝑏𝑚 𝑥 𝑚 +𝑏𝑚−1 𝑥 𝑚−1 +⋯+𝑏1 𝑥+𝑏0
𝑎𝑥+𝑏
5. A homographic function: 𝑓(𝑥) = 𝑐𝑥+𝑑 , where 𝑎𝑑 − 𝑏𝑐 ≠ 0, 𝑐 ≠ 0, 𝑥 ∈ ℝ.
6. *Trigonometric functions:
 Sine function 𝑓(𝑥) = sin𝑥.
 Cosine function: 𝑓(𝑥) = cos𝑥.
 Tangent function: 𝑓(𝑥) = tan𝑥 = tg𝑥.
 Cotangent function: 𝑓(𝑥) = cot𝑥 = ctg𝑥 = ctn𝑥.
7. An exponential function (with a base 𝑎): 𝑓(𝑥) = 𝑎 𝑥 , 𝑎 ∈ (0,1) ∪ (1, +∞), 𝑥 ∈ ℝ.
8. A logarithmic function (logarithm function) to the base 𝑎: 𝑓(𝑥) = log 𝑎 𝑥, 𝑥 ∈ ℝ,
where 𝑎 ∈ (0,1) ∪ (1, +∞), 𝑥 ∈ (0, +∞).
Consider the function 𝑓: 𝐷𝑓 → ℝ , 𝐷𝑓 ⊂ ℝ, 𝑥0 ∈ ℝ.
Definition 3.3 (Heini’s/sequential definition of limit of function)
The number 𝐿 is a limit of a function 𝑓 as 𝑥 tends to (approaches) 𝑥0 ∶ lim 𝑓(𝑥) = 𝐿
𝑥→𝑥0
𝐻
lim 𝑓(𝑥) = 𝐿 ⇔ ∀(𝑥𝑛 ): [(𝑥𝑛 ≠ 𝑥0 ∧ 𝑥𝑛 ∈ 𝐷𝑓 ∧ lim 𝑥𝑛 = 𝑥0 ) ⇒ lim 𝑓(𝑥𝑛 ) = 𝐿].
𝑥→𝑥0 𝑛→∞ 𝑛→∞

Remarks
 If 𝐿 ∈ ℝ (is finite), then the limit is called proper.
 If 𝐿 = +∞ or 𝑔 = −∞, then the limit is improper.
 lim 𝑓(𝑥) = 𝐿 means that the number 𝐿 is a limit of a function 𝑓 as 𝑥 tends to infinity.
𝑥→+∞
Remark Thanks to Heini’s definition, all the theorems formulated for limit of a sequence remain valid for a
limit of a function.
Example 3.3.
1) lim (2𝑥 3 − 4𝑥 2 + 5𝑥 − 7) =
𝑥→2
𝑥 2 −4
2) lim =
𝑥→2 𝑥+1
𝑥 2 −4
3) lim 𝑥−2 =
𝑥→2
4) lim (4𝑥 3 − 6𝑥 2 + 7𝑥 − 104) =
𝑥→∞
5) lim (4𝑥 3 − 6𝑥 2 + 7𝑥 − 104) =
𝑥→−∞
𝑥 2 −4
6) lim =
𝑥→∞ 𝑥+1
3
7) lim =
𝑥→1 𝑥−1

 Beata Ciałowicz ~ 15 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
Theorem 3.4. The limit lim 𝑓(𝑥) exists iff one-side limits lim− 𝑓(𝑥) and lim+ 𝑓(𝑥) exist and be the same:
𝑥→𝑥0 𝑥→𝑥0 𝑥→𝑥0
lim 𝑓(𝑥) = lim+ 𝑓(𝑥) = lim 𝑓(𝑥).
𝑥→𝑥0− 𝑥→𝑥0 𝑥→𝑥0

Remarks
 If lim+ 𝑓(𝑥) ≠ lim− 𝑓(𝑥) , then the limit lim 𝑓(𝑥) does not exist !
𝑥→𝑥0 𝑥→𝑥0 𝑥→𝑥0
 One needs to calculate one-side limits, if:
a) domain of a function is the interval of the form (𝑎, +∞) or (−∞, 𝑏) or (𝑎, 𝑏) (where 𝑎, 𝑏 ∈ ℝ),
b) formula of a function changes in the neighbourhood of the point,
𝑎
c) calculations lead to the symbol [0] (𝑎 – nonzero constant).
3.3 Derivative of function and its geometric interpretation
Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, 𝑥0 , 𝑥 ∈ 𝐷.
∆𝑥 = 𝑥 − 𝑥0 denotes an increment (change) of the argument
∆𝑓 = 𝑓(𝑥) − 𝑓(𝑥0 ) denotes an increment (change) of the value
∆𝑓 𝑓(𝑥0 +∆𝑥)−𝑓(𝑥0 )
= is called the difference quotient
∆𝑥 ∆𝑥

Definition 3.4 A derivative of the function 𝒇 at the point 𝒙𝟎 is a limit of differential quotient
𝒇(𝒙𝟎 +𝚫𝒙)−𝒇(𝒙𝟎 )
as 𝚫𝒙 approaches zero, if such a limit exists and is finite.
𝚫𝒙
𝑓(𝑥0 +Δ𝑥)−𝑓(𝑥0 )
Notation: 𝑓 ′ (𝑥0 ) = lim .
Δ𝑥→0 Δ𝑥

Remarks
 Other notations for the derivative of a function 𝑓 at the point 𝑥0 :
𝑑𝑓 𝑑𝑦
𝑓 ′ (𝑥0 ) = 𝐷𝑓(𝑥0 ) = (𝑥0 ) = (𝑥 ) = 𝑦̇ (𝑥0 ) where 𝑦 = 𝑓(𝑥).
𝑑𝑥 𝑑𝑥 0
 Function which has a derivative at the point 𝑥0 is called differentiable at the point 𝑥0 .
 Function 𝑓 is differentiable iff the derivative 𝑓′(𝑥0 ) exists at each point 𝑥0 ∈ 𝐷.
 The function 𝑓 ′ : 𝐷𝑓′ → ℝ, such that 𝑓 ′ : 𝑥 ⟼ 𝑓 ′ (𝑥) is called a derivative of 𝑓.

Example 3.6 Calculate the derivative of 𝑓(𝑥) = 𝑥 2 at any point 𝑥0 ∈ ℝ.

 Beata Ciałowicz ~ 16 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
Theorem 3.5. (general rules/properties of derivative)
Let 𝑓, 𝑔: 𝐷 → ℝ be differentiable functions. Then:
1) [𝑎 ⋅ 𝑓(𝑥)]′ = 𝑎 ⋅ 𝑓 ′ (𝑥), 𝑎 ∈ ℝ
2) [𝑓(𝑥) ± 𝑔(𝑥)]′ = 𝑓 ′ (𝑥) ± 𝑔′ (𝑥) (the sum rule)
′ ′ ′
3) [𝑓(𝑥) ⋅ 𝑔(𝑥)] = 𝑓 (𝑥) ⋅ 𝑔(𝑥) + 𝑓(𝑥) ⋅ 𝑔 (𝑥) (the product rule)
𝑓(𝑥) ′ 𝑓 ′ (𝑥)𝑔(𝑥)−𝑓(𝑥)𝑔′ (𝑥)
4) [𝑔(𝑥)] = 𝑖𝑓 𝑔(𝑥) ≠ 0 (the quotient rule)
𝑔2 (𝑥)
′
5) (𝑓 ∘ 𝑔)′ (𝑥0 ) = [𝑓(𝑔(𝑥0 ))] = 𝑓 ′ (𝑔(𝑥0 )) ⋅ 𝑔′ (𝑥0 )
′ 𝑓 ′ (𝑥) ′ ′ 𝑓 ′ (𝑥)
𝑎) [𝑙𝑛(𝑓(𝑥))] = b) [𝑒 𝑓(𝑥) ] = 𝑒 𝑓(𝑥) 𝑓 ′ (𝑥) c) [√𝑓(𝑥)] =
𝑓(𝑥) 2√𝑓(𝑥)

Theorem 3.6. (special rules/derivatives of elementary functions)

1) [𝑐]′ = 0 for 𝑐 ∈ ℝ 7) [sin 𝑥]′ = cos𝑥
𝑎 ′ 𝑎−1
2) [𝑥 ] = 𝑎𝑥 , where 𝑎 ∈ ℝ 8) [cos 𝑥]′ = −sin𝑥
1
3) [𝑎 𝑥 ]′ = 𝑎 𝑥 ln 𝑎, where 𝑎 > 0 9) [tan 𝑥]′ = cos2 𝑥
1
4) [𝑒 𝑥 ]′ = 𝑒 𝑥 10) [cot 𝑥]′ = − sin2 𝑥
1
5) [log 𝑎 𝑥]′ = , where 𝑎 > 0, 𝑎 ≠ 1
𝑥 ln 𝑎
1
6) [ln 𝑥]′ = 𝑥

Example 3.4 Find the domain and calculate derivative of the function:
1
1) 𝑓(𝑥) = 3𝑥 2 + 𝑥 2 − 5 + 4𝑠𝑖𝑛𝑥 − log 𝑥 ; 𝐷𝑓 = 𝑓′(𝑥) =

2) 𝑓(𝑥) = 𝑒 𝑥 ⋅ sin 𝑥 ; 𝐷𝑓 = 𝑓′(𝑥) =

𝑙𝑛𝑥
3) 𝑓(𝑥) = 5𝑥 2 −2𝑥 ; 𝐷𝑓 : 𝑓′(𝑥) =

3 −5𝑥
4) 𝑓(𝑥) = 𝑒 4𝑥 ; 𝐷𝑓 = 𝑓′(𝑥) =

5) 𝑓(𝑥) = ln(𝑥 3 + 2𝑥 2 ) ; 𝐷𝑓 : 𝑓′(𝑥) =

6) 𝑓(𝑥) = √4 − 𝑥 2 ; 𝐷𝑓 : 𝑓′(𝑥) =

 Beata Ciałowicz ~ 17 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
 Geometric interpretation of a derivative
Secant is the line joining two given points (𝑥0 , 𝑓(𝑥0 )) and (𝑥0 + ∆𝑥, 𝑓(𝑥0 + ∆𝑥)) on the graph of a function.
∆𝑦 𝑓(𝑥 +∆𝑥)−𝑓(𝑥 )
The slope of secant is given by the formula: ∆𝑥 = 0 ∆𝑥 0
.
Tangent line (simply: a tangent) to a given curve 𝑓(𝑥) at a point 𝑥0 is a straight line which passes through
the point (𝑥0 , 𝑓(𝑥0 )) and indicates the direction of the curve. A tangent line has a slope 𝑓 ′ (𝑥0 ).

Tangent line formula: 𝑦 = 𝑓 ′ (𝑥0 )(𝑥 − 𝑥0 ) + 𝑓(𝑥0 )

Example 3.5 Find the equation of the line tangent to the graph of the function 𝑓(𝑥) = 𝑥 3 when 𝑥0 = 1 or
𝑥0 = 0.

 Derivatives of higher orders

Definition 3.5
A derivative of second order (briefly: a second derivative) of a function 𝑓 is a derivative of its first derivative:
𝑓 ′′ (𝑥) = [𝑓 ′ (𝑥)]′ .
In general, a derivative of order 𝒏 (briefly: an 𝑛-th derivative) of a function 𝑓 is a derivative of (𝑛 − 1)-th
′
derivative of 𝑓: 𝑓 (𝑛) (𝑥) = [𝑓 (𝑛−1) (𝑥)] .
Notation
𝑑2 𝑓 𝑑2 𝑦
 second derivative: 𝑓 ′′ (𝑥) = 𝐷2 𝑓(𝑥) = 𝑑𝑥 2 = 𝑑𝑥 2 = 𝑦 ′′ = 𝑦̈ where 𝑦 = 𝑓(𝑥)
𝑑𝑛 𝑓
 𝑛-th derivative: 𝑓 (𝑛) (𝑥) = 𝐷𝑛 𝑓(𝑥) = 𝑑𝑥 𝑛 (𝑥) = 𝑦 (𝑛) where 𝑦 = 𝑓(𝑥)

Example 3.6 Find the 5th derivative of the function 𝑓(𝑥) = 4𝑥 5 − 3𝑥 4 + 7𝑥 2 − 11.

𝑓 ′ (𝑥) = 𝑓 ′′ (𝑥) = 𝑓 ′′′ (𝑥) = 𝑓 (4) (𝑥) = 𝑓 (5) (𝑥) =

 Beata Ciałowicz ~ 18 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
3.4 De L’Hospital’s rule
Theorem 3.7. (l’Hospital’s rule) Let 𝑓, 𝑔: 𝐷 → ℝ (𝐷 ⊂ ℝ) be differentiable in some neighbourhood of 𝑥0 .
𝑓(𝑥) 0 ∞ 𝑓(𝑥) 𝑓′ (𝑥)
If lim gives one of the indeterminate symbols [0] or [∞] then lim = lim
𝑥→𝑥0 𝑔(𝑥) 𝑥→𝑥0 𝑔(𝑥) 𝑥→𝑥0 𝑔′ (𝑥)

0 ∞
Indeterminate symbols: [ ], [ ], [0 ∙ (∞)], [∞ − ∞], [1∞ ], [00 ], [(∞)0 ].
0 ∞
Remarks
 The theorem above remains valid in cases of one-side limits: 𝑥 → 𝑥0+ , 𝑥 → 𝑥0− and limits in infinity:
𝑥 → +∞, 𝑥 → −∞.
 The theorem may be applied few times (if necessary). In problems involving repeated application of
L’Hospital’s rule, do not forget to verify that each new limit is of an indeterminate form before you
apply the rule again.
 L’Hospital’s rule involves differentiation of the numerator and the denominator separately.
0 ∞
 L’Hospital’s rule applies only to quotients whose limits are indeterminate forms [0] or [∞]. Limits of
0 ∞
the form ∞ or , for example, are not indeterminate and L’Hospital’s rule does not apply to such limits
0
0 ∞
(∞ = 0, 0 = ±∞).
Example 3.7 Find the limit:
𝑥 2 −1
1) lim =
𝑥→∞ 2𝑥 2 −3𝑥+1

𝑒 𝑥 −1
2) lim =
𝑥→0 𝑥

𝑒 𝑥 −1
3) lim =
𝑥→∞ 𝑥

3.5. Asymptotes of function

Definition 3.6 Let 𝑓: 𝐷𝑓 → ℝ and 𝑥0 ∈ ℝ, 𝑥0 ∉ 𝐷𝑓 .

A line 𝑥 = 𝑥0 is a vertical asymptote of the graph of function 𝑓 iff at least one of the one-side limits of 𝑓 at
this point is improper:
a) if lim+ 𝑓(𝑥) = ±∞ then 𝑥 = 𝑥0 is right-side vertical asymptote of 𝑓 at the point 𝑥0
𝑥→𝑥0
b) if lim− 𝑓(𝑥) = ±∞ then 𝑥 = 𝑥0 is left-side vertical asymptote of 𝑓 at the point 𝑥0 .
𝑥→𝑥0
𝑥−2
Example 3.8 Find vertical asymptotes of the graph of function: 𝑓(𝑥) = 𝑥 2 −4

 Beata Ciałowicz ~ 19 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
Definition 3.7 A straight line 𝑦 = 𝑎𝑥 + 𝑏 is an oblique (slant) asymptote of the graph of 𝑓 iff
lim [𝑓(𝑥) − (𝑎𝑥 + 𝑏)] = 0 or lim [𝑓(𝑥) − (𝑎𝑥 + 𝑏)] = 0.
𝑥→+∞ 𝑥→−∞

a) If lim [𝑓(𝑥) − (𝑎𝑥 + 𝑏)] = 0 then 𝑦 = 𝑎𝑥 + 𝑏 is a right-side oblique asymptote of 𝑓;

𝑥→+∞
b) If lim [𝑓(𝑥) − (𝑎𝑥 + 𝑏)] = 0 then 𝑦 = 𝑎𝑥 + 𝑏 is a left-side oblique asymptote of 𝑓;
𝑥→−∞
c) If 𝑎 = 0, then the asymptote has formula 𝑦 = 𝑏 and is called a a horizontal asymptote (right-side, left-
side or both-side, respectively).

Theorem 3.8.
A straight line 𝑦 = 𝑎𝑥 + 𝑏 is an (right-side/left-side) oblique asymptote of the graph of 𝑓 iff both the limits
𝑓(𝑥)
𝑎 = lim 𝑥 and 𝑏 = lim (𝑓(𝑥) − 𝑎𝑥) exist and are finite.
𝑥→±∞ 𝑥→±∞

Example 3.9 Find oblique asymptotes of the graphs of functions:

𝟓𝒙−𝟕
1) 𝒇(𝒙) = 𝒙+𝟏

𝟑𝒙𝟐 +𝟓𝒙−𝟐
2) 𝒇(𝒙) = 𝒙−𝟑

3.6. Monotonicity and local/relative extrema of a function

Remark A function whose graph is unbroken is said to be continuous. A gap or break in the graph of a
function is called a discontinuity.
Let 𝑓: 𝐷𝑓 → ℝ, 𝐷𝑓 ⊂ ℝ, [𝑎, 𝑏] ⊂ 𝐷𝑓 .

Definition 3.8 A function 𝑓 is called:

a) increasing (𝑓 ↗) on the interval (𝑎, 𝑏) iff: ∀𝑥1 , 𝑥2 ∈ (𝑎, 𝑏) [𝑥1 < 𝑥2 ⟹ 𝑓(𝑥1 ) < 𝑓(𝑥2 )]
b) decreasing (𝑓 ↘) on the interval (𝑎, 𝑏) iff: ∀𝑥1 , 𝑥2 ∈ (𝑎, 𝑏) [𝑥1 < 𝑥2 ⟹ 𝑓(𝑥1 ) > 𝑓(𝑥2 )]
c) constant on the interval (𝑎, 𝑏) iff: ∀𝑥1 , 𝑥2 ∈ (𝑎, 𝑏) [𝑥1 ≠ 𝑥2 ⟹ 𝑓(𝑥1 ) = 𝑓(𝑥2 )].

 Beata Ciałowicz ~ 20 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
Theorem 3.9. (derivative test for intervals of increase and decrease)
Assume that the function 𝑓 is continuous in [𝑎, 𝑏] and differentiable in (𝑎, 𝑏). Then:
a) if 𝑓 ′ (𝑥) > 0 for 𝑥 ∈ (𝑎, 𝑏), then 𝑓 is increasing in (𝑎, 𝑏),
b) if 𝑓 ′ (𝑥) < 0 for 𝑥 ∈ (𝑎, 𝑏), then 𝑓 is decreasing in (𝑎, 𝑏),
c) if 𝑓 ′ (𝑥) = 0 for 𝑥 ∈ (𝑎, 𝑏), then 𝑓 is constant in (𝑎, 𝑏).
Definition 3.9
Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, 𝑥0 ∈ 𝐷. Function 𝑓 has :
a) a local maximum at the point 𝑥0 iff ∃𝑟 > 0 ∀𝑥 ∈ (𝑥0 − 𝑟, 𝑥0 + 𝑟), 𝑥 ≠ 𝑥0 ∶ 𝑓(𝑥) < 𝑓(𝑥0 ).
b) a local minimum at the point 𝑥0 iff ∃𝑟 > 0 ∀𝑥 ∈ (𝑥0 − 𝑟, 𝑥0 + 𝑟), 𝑥 ≠ 𝑥0 ∶ 𝑓(𝑥) > 𝑓(𝑥0 ).
Remarks
 a local/relative maximum of a function is a peak, a point on the graph of the function that is higher than
any neighboring point on the graph,
 a local/relative minimum of a function is the bottom of a valley, a point on the graph that is lower than
any neighboring point,
 a local maximum need not be the highest point on the graph, it is maximal only relative to neighboring
points; similarly, a local minimum need not to be the lowest point on the graph.
Theorem 3.10. (Fermat’s/necessary condition for existence of extremum)
Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, [𝑎, 𝑏] ⊂ 𝐷 𝑥0 ∈ (𝑎, 𝑏). Let 𝑓 be diffirentiable in (𝑎, 𝑏).
If the function 𝑓 has an extremum at the point 𝑥0 , then 𝑓 ′ (𝑥0 ) = 0.
Remarks
 Points in the domain of the function at which either 𝑓 ′ (𝑥) = 0 or the derivative is undefined are
called critical/stationary points..
 The critical points are the possible relative maxima and minima of the function.
Theorem 3.11. (sufficient condition for the existence of extremum)
Assume that 𝑓 is continuous at the point 𝑥0 and differentiable in some its neighbourhood
1) If 𝑓 ′ (𝑥) > 0 for 𝑥 < 𝑥0 and 𝑓 ′ (𝑥) < 0 for 𝑥 > 𝑥0 , then 𝑓 has a local maximum at 𝑥0 .
2) If 𝑓 ′ (𝑥) < 0 for 𝑥 < 𝑥0 and 𝑓 ′ (𝑥) > 0 for 𝑥 > 𝑥0 , then 𝑓 assigns a local minimum at 𝑥0 .
Remark If under the assumption above the derivative does not change its sign, then the function doesn’t have
any extremum at this point.
How to use the first derivative to check monotonicity and find local extrema:
Step 1. Find the domain 𝐷𝑓 of the given function 𝑓(𝑥).
Step 2. Compute the derivative 𝑓′(𝑥).
Step 3. Find the values of 𝑥 for which the derivative is zero or undefined.
Step 4. Determine where the function is increasing or decreasing by checking the sign of the derivative
on the intervals whose endpoints are the values of 𝑥 from Step 3.
Step 5. Summarize all observation.

Example 3.10 Find the intervals of increase and decrease and local extrema of the given function:
a) 𝑓(𝑥) = 2𝑥 − ln 𝑥
1. 𝐷𝑓 5.
2. 𝑓 ′ (𝑥) =
𝒇′ (𝒙)
3. 𝑓 ′ (𝑥) = 0 ⟺ 𝒇(𝒙)

4. 𝑓 ′ (𝑥) > 0 ⟺
𝑓 ′ (𝑥) < 0 ⟺

 Beata Ciałowicz ~ 21 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
3𝑒 𝑥
b) 𝑓(𝑥) = 2−𝑥
1. 𝐷𝑓

2. 𝑓 ′ (𝑥) =

3. 𝑓 ′ (𝑥) = 0

4. 𝑓 ′ (𝑥) > 0 ⟺

5.

𝑓 ′ (𝑥) < 0 ⟺
𝒇′ (𝒙)
𝒇(𝒙)

3.8 Concavity of function and inflection points

Remark Geometrically:
 if a function is convex in the interval, then at any point in it the tangent line lies under the graph of
the function (touches it from below);
 if a function is concave in the interval, then at any point in it the tangent line lies above the graph of
the function (touches it from above).
Definition 3.10 Let 𝒇: 𝑫 → ℝ, 𝑫 ⊂ ℝ and (𝒂, 𝒃) ⊂ 𝑫.
1) The function 𝑓 is convex (convex downward, concave upward) in the interval (𝑎, 𝑏) iff a set
{(𝑥, 𝑦): 𝑥 ∈ (𝑎, 𝑏) ∧ 𝑦 ≥ 𝑓(𝑥)} is concave.
2) The function 𝑓 is concave (convex upward, concave downward) in the interval (𝑎, 𝑏) iff a
set {(𝑥, 𝑦): 𝑥 ∈ (𝑎, 𝑏) ∧ 𝑦 ≤ 𝑓(𝑥)} is concave.
3) Point 𝑃 = (𝑥0 , 𝑓(𝑥0 )), where 𝑥0 ∈ 𝐷 is called an inflection point of the graph of 𝑓 iff 𝑓 is convex (resp.
concave) in some left-side neighbourhood of 𝑥0 and is concave (resp. convex) in some right-side
neighborhood of 𝑥0 .

Theorem 3.12 (second derivative test for concavity)

Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, (𝑎, 𝑏) ⊂ 𝐷 and 𝑓 is twice continuously differentiable in (𝑎, 𝑏). Then:
a) 𝑓 is convex in (𝑎, 𝑏) iff ∀𝑥 ∈ (𝑎, 𝑏): 𝑓 ′′ (𝑥) > 0 𝑓 ⋃
b) 𝑓 is concave in (𝑎, 𝑏) iff ∀𝑥 ∈ (𝑎, 𝑏): 𝑓 ′′ (𝑥) < 0 𝑓 ⋂

 Beata Ciałowicz ~ 22 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
Theorem 3.13 (necessary condition for existence of inflection point)
Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, 𝑥0 ∈ 𝐷. Assume 𝑓 is twice differentiable at 𝑥0 .
If 𝑃(𝑥0 , 𝑓(𝑥0 )) is an inflection point of the graph of 𝑓, then 𝑓 ′′(𝑥0 ) = 0.
Remark Inflection points can also occur at points in the domain of a function where the second derivative is
undefined.
Theorem 3.14 (sufficient condition for existence of inflection point)
Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, (𝑎, 𝑏) ⊂ 𝐷, 𝑥0 ∈ (𝑎, 𝑏). Assume 𝑓 is twice differentiable in the neighbourhood of 𝑥0 .
If 𝑓 ′′ is positive (resp. negative) in some left-side neighbourhood of 𝑥0 and is negative (resp. positive) in some
right-side neighbourhood of this point, then the point (𝑥0 , 𝑓(𝑥0 )) is an inflection point of the graph of 𝑓.
How to use the second derivative to check concavity and find inflection points:
Step 1. Find the domain 𝐷𝑓 of the given function 𝑓(𝑥).
Step 2. Compute the first derivative 𝑓′(𝑥).
Step 3. Compute the second derivative 𝑓"(𝑥).
Step 4. Find the values of 𝑥 for which the second derivative is zero (second-order critical points) or
undefined.
Step 5. Determine where the function is concave or convex by checking the sign of the second derivative
on the intervals whose endpoints are the values of 𝑥 from Step 4.
Step 6. Summarize all observation.
Example 3.11 Test the following functions for the convexity. Find their inflection points.
a) 𝑓(𝑥) = 2𝑥 2 + 𝑙𝑛𝑥
1. 𝐷𝑓 =

2. 𝑓 ′ (𝑥) =

3. 𝑓 ′′ (𝑥) =

4. 𝑓 ′′ (𝑥) = 0 ⟺

5. 𝑓 ′′ (𝑥) < 0 ⟺

𝑓 ′′ (𝑥) > 0 ⟺

6.

𝒇′′ (𝒙)

𝒇(𝒙)

 Beata Ciałowicz ~ 23 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
3.8 Economic application: Marginal analysis
Let 𝑓: 𝐷 → ℝ, 𝐷 ⊂ ℝ, 𝑥0 ∈ 𝐷 and 𝑓 be differentiable at 𝑥0 .
Recalling that limit means approximate equality, by definition of the derivative one has:
𝑓(𝑥0 + Δ𝑥) − 𝑓(𝑥0 ) ≈ 𝑓 ′ (𝑥0 ) ⋅ Δ𝑥.
For Δ𝑥 = 1:
𝒇(𝒙𝟎 + 𝟏) − 𝒇(𝒙𝟎 ) ≈ 𝒇′ (𝒙𝟎 ) = 𝒇𝒎 (𝒙) - marginality of the function 𝑓 at the point 𝑥0
Interpretation:The derivative of function 𝑓 at the point 𝑥0 measures an approximate change of value of the
function caused by one-unit increase in argument from the level 𝑥0 .

Example 3.12 Suppose the total cost of manufacturing 𝑥 units of a certain commodity is 𝐶(𝑥), where:
𝐶(𝑥) = 3𝑥 2 + 5𝑥 + 120, 𝑥 ≥ 0.
a) Derive a formula for the marginal cost.
b) Find the marginal cost at 𝑥 = 10 and interpret.
𝐶(𝑥)
c) Find the level of manufacturing on which the average cost is equal to the marginal cost (𝐶𝑎𝑣 (𝑥) = 𝑥 ).
d) Use the marginal cost to approximate the cost of producing the 51st unit.

 Beata Ciałowicz ~ 24 ~
 Mathematics for Economics and Business Section 3. Calculus of one variable functions
 Economic application: Elasticity of function
𝑟𝑎𝑡𝑒 𝑜𝑓 𝑐ℎ𝑎𝑛𝑔𝑒 𝑜𝑓 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦
Percentage rate of change = 𝑠𝑖𝑧𝑒 𝑜𝑓 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦
𝒇(𝒙+∆𝒙)−𝒇(𝒙)
If 𝒚 = 𝒇(𝒙), then 𝒇(𝒙)
is called relative increment of the function 𝒇 ,
∆𝒙
is called relative increment of the argument 𝒙
𝒙
The percentage rate of change of 𝑦 caused by one-percent increase in value of the argument 𝑥 is given by the
𝑓(𝑥0 +∆𝑥)−𝑓(𝑥0 ) ∆𝑥 𝑥0
formula lim :𝑥 = 𝑓 ′ (𝑥0 ) and is called elasticity of function 𝑓 at the point 𝑥0 :
∆𝑥→0 𝑓(𝑥0 ) 0 𝑓(𝑥0 )
𝑥0
𝐸𝑥 𝑓(𝑥0 ) = ⋅ 𝑓 ′ (𝑥0 )
𝑓(𝑥0 )
Interpretation: This quantity describes a percentage change in value of the function 𝑓 caused by one-percent
increase in value of the argument 𝑥 from the level 𝑥0 .

Levels of elasticity of demand

In general, the elasticity of demand 𝐷(𝑝) is negative, since demand decreases as price 𝑝 increases.
 If |𝐸𝑝 𝐷(𝑝)| > 1, demand is said to be elastic with respect to price.
 If |𝐸𝑝 𝐷(𝑝)| < 1, demand is said to be inelastic with respect to price.
 If |𝐸𝑝 𝐷(𝑝)| = 1, demand is said to be unit elasticity with respect to price.
Example 3.15. Suppose the demand 𝐷 and price 𝑝 for a certain commodity are related by the equation: 𝐷 = 240 − 2𝑝
(for 0 ≤ 𝑝 ≤ 120).
a) Express the elasticity of demand as a function of 𝑝.
b) Calculate the elasticity of demand when the price is 𝑝 = 100. Interpret the answer.
c) At what prices the elasticity of demand equal −1 ? What is the economic significant of this price?

 Beata Ciałowicz ~ 25 ~