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ECON 6305 - Learning Module 1 Limits, Derivatives, Sums of Series, Concavity

This module covers limits, derivatives, sums of series, and properties of univariate functions including monotonicity, inverse functions, critical points, concavity, convexity, and boundary local maxima and minima. Key topics include recognizing arithmetic and geometric sums, computing derivatives, classifying critical points, testing for concavity/convexity using first/second derivatives, and identifying boundary local extrema using complementary slackness.

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73 views12 pages

ECON 6305 - Learning Module 1 Limits, Derivatives, Sums of Series, Concavity

This module covers limits, derivatives, sums of series, and properties of univariate functions including monotonicity, inverse functions, critical points, concavity, convexity, and boundary local maxima and minima. Key topics include recognizing arithmetic and geometric sums, computing derivatives, classifying critical points, testing for concavity/convexity using first/second derivatives, and identifying boundary local extrema using complementary slackness.

Uploaded by

LittleMinn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ECON 6305 – Learning Module 1

Limits, derivatives, sums of series, concavity


• After completing this module, the student will be able to:
Lesson 1:
– Recognize and manipulate arithmetic and geometric sums of series
– Find limits and compute derivatives of univariate functions

Lesson 2:
– Test functions for monotonicity and apply the inverse function
rule
– Use first and second derivatives to find and classify critical values
of univariate functions including border solutions
– Define and test for concavity and convexity of univariate
functions
Monotonic function

•   Increasing:

Decreasing:

Note: can be monotonic over some domain of


Inverse function

•   • If is monotonic

is the inverse function of

• Inverse function rule

If is the inverse function of and


Example: Inverse function rule

•  
• Example

• Apply the inverse function rule

• Or calculate the derivative directly


Critical points (max, min, inflexion)

•  
On left On right Classification

• Second derivative test at


Example: Critical points

•  
Example: Critical points (cont.)

f(x)=x3-12x2+21x+1
20

-20

-40
f(x)

-60

-80

-100

-120
0 4 8 2 6 2 4 8 2 6 4 4 8 2 6 6 4 8 2 6 8 4 8 2 6 0
0. 0. 1 . 1 . 2. 2. 3. 3. 4 . 4 . 5 . 5. 6. 6. 7. 7 . 8 . 8. 9. 9. 1

x
Boundary local max or min

•  • In the dismal science, it is important to keep things


positive; we often encounter the restrictions
• This boundary constraint can create local maxima or
minima where
• We can employ the concept of complementary slackness:

and

and

Self test LM 1.3 Boundary Max or Min


Concavity and convexity

•  • Convex set: all points on the line segment joining any two points
in the set are within the set

• Convex function: for any two values in the domain of and , and ,

• Except for the endpoints which are on the function and secant,
all points on the secant lie above the function

• Equivalent definition: the set of points above the function form


a convex set
Concavity and convexity (cont.)

•  • Concave function: for any two values in the domain


of and , and ,

• Except for the endpoints which are on the function


and secant, all points on the secant lie below the
function

• Equivalent definition: the set of points below the


function form a convex set
Second Derivative Text, Composite Functions

•   • If is twice differentiable, is convex [concave] iff


for all

• If is convex [concave] and is a local minimum


[maximum], then is a global minimum [maximum]

• Suppose is a global maximum of and is a strictly


increasing function of , then ) has a global
maximum at
Example: Concavity and Convexity

•  Example:

has a global minimum at

• Which is a global minimum of


Self test LM 1.4 Concavity and Convexity

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