Mathematics for

Business
Instructor: Prof. Ken Tsang
Room E409-R11
Email: [email protected]

CALCULUS
For Business, Economics, and the Social
and life Sciences
Hoffmann, L.D. & Bradley, G.L.

TA information
Mr Zhu Zhibin
Room E409 Tel: 3620630
[email protected]

Web-page for this class

Watch for announcements about this class
and
download lecture notes from
http://www.uic.edu.hk/~kentsang/calcu2012/c
alcu.htm
Or from this page:
http://www.uic.edu.hk/~kentsang/
Or from Ispace

Tutorials

One hour each week

Time & place to be announced later (we need
your input)
More explanations
More examples
More exercises

How is my final grade

determined?
Quizzes
Mid-term exam
Assignments
Final Examination

20%
20%
10%
50%

UIC Score System

Grade Distribution Guidelines

What can you do to maximize your

chances for success?
Work hard, more importantly, work smart:
1.
Understand, don't memorize.
2.
Ask why, not how.
3.
See every problem as a challenge.
4.
Learn techniques, not results.
5.
Make sure you understand each topic before
going on to the next.

More info about this Course

Assignments must be handed in before the deadline.

There will be about 3 to 4 quizzes.
We will tell you your scores for the mid-term test
and quizzes so that you know your progress.
However, for the final examination, we cannot tell
you the score before the AR release the official
results.

10

Mathematics? Why?

Mathematics is about

numbers, space, structures,

Mathematicians seek out patterns, formulate

new conjectures, and establish truth by rigorous
deduction from appropriately chosen axioms and
definitions.
Most important, it teaches us how to analysis
problem in an abstract form, with logical
thinking.

11

They invented Calculus!

Sir Isaac Newton

(1642-1727)

Gottfriend Wilhelm von

Leibniz
(1646-1716)
12

What is Calculus all about?

Calculus is the study of changing quantities, or more

precisely, the rate of changes: e.g. velocities, interest
rate, return on an asset.

The two key areas of Calculus are Differential

Calculus and Integral Calculus.

The big surprise is that these two seemingly unrelated

areas are actually connected via the Fundamental
Theorem of Calculus.
13

Calculus has practical applications, such as understanding the true meaning of the
infinitesimals. (Image concept by Dr. Lachowska.)
14

Isaac Newton

(4 January 1643 31 March

1727)

English physicist,
mathematician,
astronomer, natural
philosopher and
theologian, one of the
most influential men in
human history.
Newton in a 1702 portrait by Godfrey
Kneller
15

Newtons contributions
Newton described universal gravitation and
the three laws of motion, laying the
groundwork for classical mechanics, which dominated
the scientific view of the physical Universe for the
next three centuries and is the basis for modern
engineering.

Newton showed that the motions of objects

on Earth and of celestial bodies are
governed by the same set of natural
laws.
16

Newton's own first edition copy of his Philosophiae Naturalis

Principia Mathematica with his handwritten corrections for the
second edition.
The book can be seen in the Wren Library of Trinity College, Cambridge.

Cosmos1

17

Newton's 2nd law of motion

Newton's Second Law states that an applied force, on an object equals
the rate of change of its momentum, with time.

For a system with constant mass, the equation can

be written in the iconic form:
F= ma,
where a is the acceleration of an object.
Acceleration is the rate of change in velocity.
This can be rewritten as a differential equation.
Most laws of nature can be expressed as differential
equations or partial differential equations (PDE).

18

If you are a finance major

Finance is a quantitative discipline

How to calculate the return of your investment?

Asset valuation
Portfolio theory
Derivatives
Risk management

19

A simple example in asset

valuation

Suppose we have a riskless asset

r is the constant rate of return

20

If your major is finance, you will

know this:

Fischer Black and Myron Scholes first articulated

the Black-Scholes formula in their 1973 paper, "The
Pricing of Options and Corporate Liabilities."
Robert C. Merton was the first to publish a paper
expanding the mathematical understanding of the
options pricing model and coined the term "BlackScholes" options pricing model.
Merton and Scholes received the 1997 Prize in
Economic Sciences in Memory of Alfred Nobel for
this and related work.

21

The Black-Scholes model

In the Black-Scholes model, we assume that the

underlying security (typically the stock) follows a
geometric Brownian motion. That is,

where S is the price of the stock at time t,

is the drift rate of S, annualized,
is the volatility of the stock,
the dW term here stands in for any and all sources of uncertainty in
the price history of a stock, modeled by a Brownian motion.

22

If you are a science major

Science is
Quantitative
Logical

23

Ecology: Population
dynamics

The basic accounting relation for population

dynamics is:
N1 = N0 + B D + I E

where N1 is the number of individuals at time

1, N0 is the number of individuals at time 0, B
is the number of individuals born, D the
number that died, I the number that
immigrated, and E the number that emigrated
between time 0 and time 1.
24

The LotkaVolterra (predator

prey) equations
are a pair of first-order, non-linear, differential
equations frequently used to describe the
dynamics of biological systems in which two
species interact, one a predator and one its
prey.

25

where

* y is the number of some predator (for example, wolves);

* x is the number of its prey (for example, rabbits);
* dy/dt and dx/dt represents the growth of the two populations against
time;
* t represents the time; and
* , , and are parameters representing the interaction of the two
species.

26

Suppose there are two species of animals, a baboon (prey) and a cheetah
(predator). If the initial conditions are 80 baboons and 40 cheetahs, one can plot the
progression of the two species over time.

27

OK, any question?

Thats all for introduction.

Lets begin the real thing!

28

Chapter 1
Functions, Graphs and Limits
In this Chapter, we will encounter some
important concepts.
Functions ( )
Limits
One-sided Limits and

Continuity

29

Section 1.1 Functions

A function is a rule that assigns to each object in a set

A exactly one object in a set B.

The set A is called the domain of the

function, and the set of assigned objects in B is called the
range.

30

Function, or not?
f
A

YES

f
A

B
NO

NO
31

To be convenient, we represent a functional relationship by

an equation y f (x )

In this context, x and y are called variables, furthermore,

we refer to y as the dependent variable ( ) and to x
as the independent variable . For instant, the
2
y

f
(
x
)

x
4
function representation

Noted that x and y can be substituted by other letters. For

example, the above function can be represented by

s t 4
2

32

Function that describes tabular

Table 1.1 Average Tuition and Fees for 4-Year Private Colleges
data
Academic Year
Ending in

Period n

Tuition and
Fees

1973
1978
1983
1988
1993
1998
2003

1
2
3
4
5
6
7

$1,898
$2,700
$4,639
$7,048
$10,448
$13,785
$18,273

33

Solution:

We can describe this data as a function f defined

by the rule
average tuition and fees at the

f ( n)

beginning
of
the
n
th
5
year
period

Thus, f (1) 1,898, f (2) 2,700,......., f (7) 18,273

Noted that the domain of f is the set of integers

A {1,2,....,7}
34

Piecewise-defined function

A piecewise-defined function is such a function that

is often defined using more than one formula,
where each individual formula describes the
function on a subset of the domain.
Here is an example of such a function

1
if x 1

f ( x) x 1
3x 2 1 if x 1
35

Example 1

Find f(-1/2), f(1), and f(2), where the piecewise-defined

function f(x) is given at the above slide.
Solution:
1
x

Since
satisfies x<1, use the top part of the formula to find
2

1
1
1
2
f

3
2 1/ 2 1 3 / 2
However, x=1 and x=2 satisfy x1, so f(1) and f(2) are both
found by using the bottom part of the formula:
2
f (1) 3(1) 2 1 4 and f (2) 3(2) 1 13

36

Domain Convention

We assume the domain of f to be the set of all

numbers for which f(x) is defined (as a real
number).
We refer to this as the natural domain of f.

In general, there are two situations where a number

is not in the domain of a function:
1) division by 0
2) The even number root of a negative number

37

Example 2

Find the domain and range of each of these functions

a.

1
f ( x)
1 x2

b. g (u )

4 u2

Solution:
a. Since division by any number other than 0 is possible, the
domain of f is the set of all numbers except -1 and 1. The range
of f is the set of all numbers y except 0.
b. Since negative numbers do not have real fourth roots, so the
domain of g is the set of all numbers u such as u-2. The range
of g is the set of all nonnegative numbers.
38

Functions Used in
Economics
A demand function
( ) p=D(x) is a function that
relates the unit price p for a particular commodity to the
number of units x demanded by consumers at that price.

The total revenue is given by the product

R(x)=(number of items sold)(price per item)
=xp=xD(x)

If C(x) is the total cost of producing the x

units, then the profit is given by the function
P(x)=R(x)-C(x)=xD(x)-C(x)
39

Example 3

Market research indicates that consumers will buy x

thousand units of a particular kind of coffee maker when
the unit price is p 0.27 x 51 dollars. The cost of
producing the x thousand units is

C ( x) 2.23 x 3.5 x 85
2

thousand dollars
a. What are the revenue and profit functions, R(x) and
P(x), for this production process?
b. For what values of x is production of the coffee
makers profitable?
40

Solution:

a. The demand function is D( x) 0.27 x 51 , so the revenue is

R ( x) xD( x) 0.27 x 2 51x

thousand dollars, and the profit is (thousand dollars)
P( x) R( x) C ( x)

0.27 x 2 51x (2.23 x 2 3.5 x 85)

2.5 x 2 47.5 x 85

b. Production is profitable when P(x)>0. We find that

P ( x ) 2.5 x 2 47.5 x 85
2.5( x 2 19 x 34)
2.5( x 2)( x 17 ) 0

Thus, production is profitable for 2<x<17.

41

Composition of Functions

Composition of Functions: Given functions f(u) and g(x), the

composition f(g(x)) is the function of x formed by substituting
u=g(x) for u in the formula for f(u).

Example 4
3
Find the composition function f(g(x)), where f (u ) u 1 and

g ( x) x 1

Solution:
Replace u by x+1 in the formula for f(u) to get

f ( g ( x)) ( x 1) 3 1 x 3 3 x 2 3 x 2
Question: How about g(f(x))?
Note: In general, f(g(x)) and g(f(x)) will not be the same.

42

Example 5

An environmental study of a certain community suggests

that the average daily level of carbon monoxide in the air
will be c( p) 0.5 p 1 parts per million when the population
is p thousand. It is estimated that t years from now the
2
p
(
t
)

10

0
.
1
t
population of the community will be
thousand.
a. Express the level of carbon monoxide in the air as a
function of time.
b. When will the carbon monoxide level reach 6.8 parts
per million?
43

Solution:
a. Since the level of carbon monoxide is related to the variable p
by the equation c( p ) 0.5 p 1 , and the variable p is related to
the variable t by the equation p (t ) 10 0.1t 2
It follows that the composite function

c( p(t )) c(10 0.1t 2 ) 0.5(10 0.1t 2 ) 1 6 0.05t 2

expresses the level of carbon monoxide in the air as a function of
the variable t.
b. Set c(p(t)) equal to 6.8 and solve for t to get
6 0.05t 2 6.8
0.05t 2 0.8
t 2 16
t4

t 4 is not a natural solution.

That is, 4 years from now the level of carbon monoxide will be
6.8 parts per million.

44

Section 1.2 The Graph of a Function

The graph of a function f consists of all points (x,y) where x is

in the domain of f and y=f(x), that is, all points of the form
(x,f(x)).
Rectangular coordinate system ,
Horizontal axis , vertical axis .
The below example shows that the function can be sketched
by plotting a few points.
2

f ( x) x x 2

-3

-2

-1

f(x)

-10

-4

-4

-10

45

Intercepts

x intercepts: The points where a graph crosses the x axis.

A y intercept: A point where the graph crosses the y axis.
How to find the x and y intercepts: The only possible y
intercept for a function is y0 f (0), to find any x
intercept of y=f(x), set y=0 and solve for x.
Note: Sometimes finding x intercepts may be difficult.
Following above example, the y intercept is f(0)=2. To find
the x intercepts, solve the equation f(x)=0, we have x=-1
and 2. Thus, the x intercepts are (-1,0) and (2,0).

46

Parabolas

Parabolas: The graph of y Ax 2 Bx as

C long as A0.
All parabolas have a U shape and the parabola opens up if
A>0 and down if A<0.
The peak or valley of the parabola is called its vertex
, and it always occurs where x B
2A

47

Example 6

A manufacturer determines that when x hundred units of a particular

commodity are produced, they can all be sold for a unit price given by
the demand function p=60-x dollars. At what level of production is
revenue maximized? What is the maximum revenue?
Solution:
The revenue function R(x)=x(60-x) hundred dollars. Note that R(x) 0
only for 0x60. The revenue function can be rewritten as

R ( x ) x 60 x
2

which is a parabola that opens downward (Since A=-1<0) and has its
B
60

30
high point (vertex) at x
2A

2( 1)

Thus, revenue is maximized when x=30 hundred units are produced,

and the corresponding maximum revenue is R(30)=900 hundred
dollars.
48

Intersections of Graphs

Sometimes it is necessary to determine when two

functions are equal.

For example, an
economist may wish to
compute the market
price at which the
consumer demand for
a commodity will be
equal to supply.

49

Power Functions, Polynomials,

and Rational Functions

n
A Power Function : A function of the form f ( x ) x ,
where n is a real number.
A Polynomial Function : A function of the form

p ( x ) an x n an 1 x n 1 a1 x a0

where n is a nonnegative integer and a0 , a1 , , an are constants. If

an ,the
0 integer n is called the degree of the polynomial.

p( x)
A Rational Function : A quotient q ( x) of two

polynomials p(x) and q(x).

50

The Vertical Line Test

The Vertical Line Test: A curve is the graph of a
function if and only if no vertical line intersects the
curve more than once.

51

Section 1.3 Linear Functions

A linear function is a function that
changes at a constant rate with respect to its
independent variable.
The graph of a linear function is a straight line.
The equation of a linear function can be written in the
form

y mx b

where m and b are constants.

52

The Slope of a Line

The Slope of a Line: The slope of the non-vertical line

passing through the points ( x1 , y1 ) and( x2 , y2 ) is given by the
formula

change in y y y2 y1
Slope

change in x x x2 x1

Sign and magnitude of slope

53

Forms of the equation of a line

The Slope-Intercept Form: The equation y mx b is the

equation of a line whose slope is m and whose y intercept is
(0,b).
The Point-Slope Form: The equation y y0 m( x x0 ) is an
equation of the line that passes through the point
( x0 , y0 )and that has slope equal to m.
m

(0 0.5)
1

( 1.5 0)
3

The slope-Intercept form is

y

1
1
x
3
2

The point-slope form that passes

through the
point (-1.5,0) is
1
y0

( x 1.5)

54

Example 7

Table 1.2 lists the percentage of the labour force that was unemployed
during the decade 1991-2000. Plot a graph with the time (years after
1991) on the x axis and percentage of unemployment on the y axis.
Do the points follow a clear pattern? Based on these data, what would
you expect the percentage of unemployment to be in the year 2005?
Table 1.2 Percentage of Civilian Unemployment
Year

1991
1992
1993
1994
1995
1996
1997
1998
1999
2000

Number of Years

Percentage of

from 1991

Unemployed

0
1
2
3
4
5
6
7
8
9

6.8
7.5
6.9
6.1
5.6
5.4
4.9
4.5
4.2
4.0
55

Solution:

The pattern does suggest that we may be able to get useful

information by finding a line that best fits the data in
some meaningful way. One such procedure, called leastsquares approximation, require the approximating line to
be positioned so that the sum of squares of vertical distances
from the data points to the line is minimized.
It produces the best-fitting line y 0.389 x 7.338 .
Based on this formula, we can attempt a prediction of the
unemployment rate in the year 2005:
y (14) 0.389(14) 7.338 1.892
Note: Care must be taken when making predictions by extrapolating
from known data, especially when the data set is as small as the one
in this example.
56

Parallel and
Perpendicular Lines

Let m1 and m2 be the slope of the non-vertical lines L1

and L2 . Then
L1 and L2 are parallel if and only if m1 m2
1
L1 and L2 are perpendicular if and only if m2
m
1

57

Example 8

Let L be the line 4x+3y=3

a. Find the equation of a line L1 parallel to L through P(-1,4).
b. Find the equation of a line L2 perpendicular to L through Q(2,-3).
Solution:
By rewriting the equation 4x+3y=3 in the slope-intercept form
4
4
y x 1, we see that L has slope mL
3
3

a. Any line parallel to L must also have slope -4/3. The required line
L1 contains P(-1,4), we have y 4 4 ( x 1) y 4 x 8
3

b. A line perpendicular to L must have slope m=3/4

.Since the required
3
line L2 contains Q(2,-3), we have y 3 4 ( x 2)
y

3
9
x
4
2
58

Section 1.4 Functional Models

To analyze a real world problem, a common procedure is to

make assumptions about the problem that simplify it enough to
allow a mathematical description. This process is called
mathematical modelling and the modified problem based on
the simplifying assumptions is called a mathematical model.
Real-world
problem
adjustments

Formulation
Mathematical
model

Testing

Analysis

Prediction
Interpretation

59

Elimination of Variables

In next example, the quantity you are seeking is expressed

most naturally in term of two variables. We will have to
eliminate one of these variables before you can write the
quantity as a function of a single variable.

Example 9

The highway department is planning to build a picnic area

for motorists along a major highway. It is to be rectangular
with an area of 5,000 square yards and is to be fenced off
on the three sides not adjacent to the highway. Express the
number of yards of fencing required as a function of the
length of the unfenced side.
60

Solution:
We denote x and y as the lengths of the sides of the picnic area.
Expressing the number of yards F of required fencing in terms of
these two variables, we get F x 2 y . Using the fact that the area
is to be 5,000 square yards that is xy 5,000 y 5000
x
and substitute the resulting expression for y into the formula for F to
get F ( x) x 2 5000 x 10000

61

Modelling in Business and

Economics
Example 10
A manufacturer can produce blank videotapes at a cost of $2 per
cassette. The cassettes have been selling for $5 a piece. Consumers
have been buying 4000 cassettes a month. The manufacturer is
planning to raise the price of the cassettes and estimates that for each
$1 increase in the price, 400 fewer cassettes will be sold each month.
a: Express the manufacturers monthly profit as a function of the
price at which the cassettes are sold.
b: Sketch the graph of the profit function. What price corresponds to
maximum profit? What is the maximum profit?
62

Solution:

a. As we know, Profit=(number of cassettes sold)(profit per

cassette)
Let p denote the price at which each cassette will be sold
and let P(p) be the corresponding monthly profit.
Number of cassettes sold
=4000-400(number of $1 increases)
=4000-400(p-5)=6000-400p
Profit per cassette=p-2
The total profit is

P ( p) (6000 400 p)( p 2)

400 p 2 6800 p 12000
63

b. The graph of P(p) is the downward opening parabola

shown in the bottom figure. Profit is maximized at the
value of p that corresponds to the vertex of the parabola.
We know p B 6800 8.5
2A

2(400)

Thus, profit is maximized when the manufacturer charges

$8.50 for each cassette, and the maximum monthly profit
is Pmax P(8.5) 400(8.5) 2 6800(8.5) 12000 $16900

64

Market Equilibrium
The law of supply and demand: In a competitive market
environment, supply tends to equal demand, and when this
occurs, the market is said to be in equilibrium.
The demand function: p=D(x)
The supply function: p=S(x)
The equilibrium price:
p e D ( xe ) S ( xe )

Shortage: D(x)>S(x)
Surplus: S(x)>D(x)
65

Example 11

Market research indicates that manufacturers will supply x

units of a particular commodity to the marketplace when the
price is p=S(x) dollars per unit and that the same number of
units will be demanded by consumers when the price is
p=D(x) dollars per unit, where the supply and demand
functions are given by
2
S ( x) x 14 D ( x) 174 6 x
a. At what level of production x and unit price p is market
equilibrium achieved?
b. Sketch the supply and demand curves, p=S(x) and
p=D(x), on the same graph and interpret.
66

Solution:

a. Market equilibrium occurs when S(x)=D(x), we have

x 2 14 174 6 x
( x 10)( x 16) 0
x 10 or 16

Only positive values are meaningful, pe D(10) 174 6(10) 114

67

Break-Even Analysis
At low levels of production, the manufacturer suffers
a loss. At higher levels of production, however, the total
revenue curve is the higher one and the manufacturer
realizes a profit.
Break-even point : The total revenue equals total cost.

68

Example 12

A manufacturer can sell a certain product for $110 per unit.

Total cost consists of a fixed overhead of $7500 plus
production costs of $60 per unit.
a. How many units must the manufacturer sell to break even?
b.What is the manufacturers profit or loss if 100 units are
sold?
c.How many units must be sold for the manufacturer to
realize a profit of $1250?
Solution:

If x is the number of units manufactured and sold, the total

revenue is given by R(x)=110x and the total cost by
C(x)=7500+60x
69

a. To find the break-even point, set R(x) equal to C(x) and solve
110x=7500+60x, so that x=150.
It follows that the manufacturer will have to sell 150 units to break
even.
b. The profit P(x) is revenue minus cost. Hence,
P(x)=R(x)-C(x)=110x-(7500+60x)=50x-7500
The profit from the sale of 100 units is P(100)=-2500
It follows that the manufacturer will lose $2500 if 100 units are
sold.
c. We set the formula for profit P(x) equal to 1250 and solve for x,
we have P(x)=1250, x=175. That is 175 units must be sold to
generate the desired profit.
70

Example 13

A certain car rental agency charges $25 plus 60 cents per

mile. A second agency charge $30 plus 50 cents per mile.
Which agency offers the better deal?
Solution:

Suppose a car is to be driven x miles, then the first agency

will charge C1 ( x) 25 0.60 xdollars and the second will charge
C2 ( x) 30 0.50 x . So that x=50.

For shorter distances, the first agency offers the better deal,
and for longer distances, the second agency is better.
71

Section 1.5 Limits

Roughly speaking, the limit process involves examining the

behavior of a function f(x) as x approaches a number c that
may or may not be in the domain of f.
To illustrate the limit process, consider a manager who
determines that when x percent of her companys plant
capacity is being used, the total cost is
8 x 2 636 x 320
C ( x)
x 2 68 x 960

hundred thousand dollars. The company has a policy of

rotating maintenance in such a way that no more than
80% of capacity is ever in use at any one time. What cost
should the manager expect when the plant is operating at
full permissible capacity?
72

It may seem that we can answer this question by simply

evaluating C(80), but attempting this evaluation results in
the meaningless fraction 0/0. However, it is still possible
to evaluate C(x) for values of x that approach 80 from the
left (x<80) and the right (x>80), as indicated in this table:
x approaches 80 from the left
x
C(x)

79.8

79.99

79.999

6.99782

6.99989

6.99999

x approaches 80 from the right

80

80.0001

80.001

80.04

7.000001

7.00001

7.00043

The values of C(x) displayed on the lower line of this table

suggest that C(x) approaches the number 7 as x gets closer
and closer to 80. The functional behavior in this example
can be describe by lim C ( x) 7
x 80
73

Limit: If f(x) gets closer and closer to a number L as x gets

closer and closer to c from both sides, then L is the limit of
f(x) as x approaches c. The behavior is expressed by writing
lim f ( x ) L
x c

74

Example 14

Use a table to estimate the limit

x 1
lim
x 1 x 1

Solution:

Let

f ( x)

x 1
x 1

and compute f(x) for a succession of values

of x approaching 1 from the left and from the right.

x 1

0.99

0.999

0.9999

f(x)

0.50126

0.50013

0.50001

1.00001

1.0001

1.001

0.499999

0.49999

0.49988

The numbers on the bottom line of the table suggest that

f(x) approaches 0.5 as x approaches 1. That is
lim
x 1

x 1
0.5
x 1

75

It is important to remember that limits describe the behavior

of a function near a particular point, not necessarily at the
point itself.

f ( x) 4
Three functions for which lim
x 3
76

The figure below shows that the graph of two functions

that do not have a limit as x approaches 2.

Figure (a): The limit does not exist; Figure (b): The
function has no finite limit as x approaches 2. Such socalled infinite limits will be discussed later.
77

Properties of Limits
If lim
f ( x) and lim
g ( x) exist, then
xc
xc
lim [ f ( x) g ( x)] lim f ( x) lim g ( x)

xc

xc

xc

lim [ f ( x) g ( x)] lim f ( x) lim g ( x)

xc

xc

xc

lim kf ( x) k lim f ( x) for any constant k

xc

xc

lim [ f ( x) g ( x)] [ lim f ( x)][ lim g ( x)]

xc

xc

xc

lim f ( x)
f ( x)
xc
lim [
]
if lim g ( x) 0
x c g ( x)
xc
lim g ( x)
xc

lim [ f ( x)] p [ lim f ( x)] p if [ lim f ( x)] p exists

xc

xc

xc

78

For any constant k,

lim k k
x c

and

lim x c
x c

That is, the limit of a constant is the constant itself, and

the limit of f(x)=x as x approaches c is c.

79

Computation of Limits
Example 15

Find (a)

(b)

lim (3 x 3 4 x 8)

x 1

3x 3 8
lim
x 0
x2

Solution:

a. Apply the properties of limits to obtain

lim (3 x 4 x 8) 3 lim x 4 lim x lim 8 3(1)3 4(1) 8 9

3

x 1

x 1

x 1

x 1

b. Since lim( x 2) 0, you can use the quotient rule for

x 0
limits to get
3 lim x 3 lim 8

3x 8
08
x 0
x 0
lim

4
x 0
x2
lim x lim 2
02
3

x 0

x 0

80

Limits of Polynomials and Rational Functions: If p(x)

and q(x) are polynomials, then
lim p ( x ) p (c )
x c

and

p ( x ) p (c )
lim

x c q ( x )
q (c )

if q (c) 0

Example 16

Find

lim
x2

x 1
x2

Solution:

The quotient rule for limits does not apply in this case
since the limit of the denominator is 0 and the limit of the
numerator is 3. So the limit of the quotient does not exist.
81

Indeterminate Form
f ( x)
lim
g
(
x
)

0
lim
f
(
x
)

lim
If
and
, then
is said to be
g ( x)
x c

x c

x c

indeterminate. The term indeterminate is used since the

limit may or may not exist.
Example 17

x2 1
lim 2
x 1 x 3 x 2

(a) Find
Solution:

a.

x 1
(b) Find lim
x 1 x 1

x2 1
( x 1)( x 1)
x 1
2
lim 2
lim
lim

2
x 1 x 3 x 2
x 1 ( x 1)( x 2)
x 1 x 2
1

b. lim
x 1

x 1
x 1 x 1
x 1
1
1
lim
lim
lim

x 1 x 1 ( x 1) x 1 x1 ( x 1) x 1 x1 x 1 2

82

Limits Involving Infinity

Limits at Infinity: If the value of the function f(x) approach the

number L as x increases without bound, we write

lim f ( x) L

f ( x) M
Similarly, we write xlim

when the functional values f(x) approach the number M as x
decreases without bound.

83

Reciprocal Power Rules: For constants A and k, with k>0

A
lim 0
x x k

and

A
lim 0
x x k

Example 18

Find

x2
lim
x 1 x 2 x 2

Solution:
lim 1
x2
x2 / x2
1
x
lim
lim 2

0.5
2
2
2
2
2
x 1 x 2 x
x 1 / x x / x 2 x / x
lim 1 / x lim 1 / x lim 2 0 0 2
x

84

Procedure for Evaluating a Limit at Infinity of f(x)=p(x)/q(x)

Step 1. Divide each term in f(x) by the highest power xk that
appears in the denominator polynomial q(x).
f ( x) or lim f ( x ) using algebraic
Step 2. Compute xlim

x
properties of limits and the reciprocal rules.

Exercise

3x 4 8 x 2 2 x
lim
x
5x 4 1

Example 19

sin( x)
lim
x
x

(Optional
Question!)

If a crop is planted in soil where the nitrogen level is N,

then the crop yield Y can be modeled by the MichaelisAN
Menten function Y ( N )
N 0
BN

where A and B are positive constants. What happens to

crop yield as the nitrogen level is increased indefinitely?
85

Solution:

We wish to compute

AN
lim Y ( N ) lim
N
N B N
AN / N
lim
N B / N N / N
A
A
lim

N B / N 1
0 1
A

Thus, the crop yield tends toward the constant value A as

the nitrogen level N increases indefinitely. For this reason,
A is called the maximum attainable yield.
86

Infinite Limits : If f(x) increases or

decreases without bound as xc, we have

lim f ( x)
x c

or

x
For example lim
x 2 ( x 2) 2

lim f ( x)
x c

From the figure, we can

guest that

x
lim

2
x 2 ( x 2)

87

Section 1.6 One-sided Limits and

Continuity

If f(x) approaches L as x tends toward c from the

left (x<c), we write

lim f ( x) L

x c

where L is called the limit from the left (or lefthand limit)
Likewise if f(x) approaches M as x tends toward
c from the right (x>c), then lim f ( x ) M

x c

M is called the limit from the right (or right-hand

limit.)
88

Example 20

For the function

1 x 2 if x 2
f ( x)
2 x 1 if x 2

evaluate the one-sided limits lim f ( x) and lim f ( x)

x2

x2

Solution:

2
Since f ( x) 1 x for x<2, we have

lim f ( x) lim (1 x 2 ) 3

x2

x2

Similarly, f(x)=2x+1 if x2, so

lim f ( x ) lim ( 2 x 1) 5

x2

x2

89

f ( x)
Existence of a Limit: The two-sided limit lim
x 2
exists if and only if the two one-sided limitslim f ( x)
x2
lim f ( x) and
exist and are equal, and then
x2

lim f ( x) lim f ( x) lim f ( x)

x2

x2

x2

Notice that the limit of the piecewise-define

function f(x) in example 20 does not exist, that is
lim f ( x) does not exist, since xlim
2
x 2

f ( x) lim f ( x)
x2

90

lim f ( x) does not

x1

exist!
Since the left and right
hand limits are not
equal.
At x=1:

lim f x 0

Left-hand limit

lim f x 1

Right-hand limit

f 1 1

value of the function

x 1

x 1

91

lim f ( x ) does exist!

x 2

Since the left and right

hand limits are equal,
However, the limit is
not equal to the value
of function.
At x=2:

lim f x 1

Left-hand limit

lim f x 1

Right-hand limit

x 2
x2

f 2 2

value of the function

92

lim f ( x) does exist!

x3

Since the left and right

hand limits are equal,
and the limit is equal to
the value of function.
f x 2
At x=3: xlim

3
lim f x 2

x 3

f 3 2

Left-hand limit
Right-hand limit
value of the function
93

Nonexistent One-sided Limits

A simple example is provided by the function

f ( x) sin(1 / x)

As x approaches 0 from either the left or the right, f(x) oscillates

between -1 and 1 infinitely often. Thus neither one-sided limit at 0
exists.
94

Continuity
A continuous function is one whose graph can be
drawn without the pen leaving the paper. (no holes or
gaps )

95

A hole at x=c

96

A gap at x=c

97

So what properties will guarantee that f(x) does not

have a hole or gap at x=c?
Continuity: A function f is continuous at c if all three of
these conditions are satisfied:
a. f (c) is defined
f ( x) exists
b. lim
xc
f ( x ) f (c )
c. lim
x c

If f(x) is not continuous at c, it is said to have a

discontinuity there.
98

f(x) is continuous at
x=3 because the left
and right hand limits
exist and equal to f(3).

At x=1: lim f ( x ) lim f ( x )

x 1

x 1

Discontinuous

At x=2: lim f ( x ) lim f ( x ) f ( 2)

Discontinuous

At x=3:

Continuous

x 2

x 2

lim f ( x ) lim f ( x ) f ( 3)

x3

x3

99

Continuity Polynomials and Rational Functions

If p(x) and q(x) are polynomials, then

lim p ( x) p (c )
xc

p ( x ) p (c )
lim

if q (c) 0
x c q( x)
q (c )

A polynomial or a rational function is continuous

wherever it is defined
100

Example 21

x 1
Show that the rational function f ( x)
is continuous
x2

at x=3.

Solution:

( x 2) 0 , you
Note that f(3)=(3+1)/(3-2)=4, since lim
x 3
will find that
lim( x 1)
x 1
4
lim f ( x ) lim
x 3
4 f (3)
x 3
x 3 x 2
lim( x 2) 1
x 3

as required for f(x) to be continuous at x=3, since the

three criteria for continuity are satisfied.
101

Example 22

Determine where the function below is not continuous.

Solution:

Rational functions are continuous everywhere except

where we have division by zero.
The function given will not be continuous at t=-3 and
t=5.
102

Exercise
Discuss the continuity of each of the following functions
1
a. f ( x)
x

x2 1
b. g ( x)
x 1

x 1 if x 1
c. h( x)
2 x if x 1

103

Example 23

For what value of the constant A is the following function

continuous for all real x?

Solution:

if x 1
Ax 5
f ( x) 2
x 3x 4 if x 1

Since Ax+5 and x 2 3x 4 are both polynomials, it follows

that f(x) will be continuous everywhere except possibly at
x=1 . According to the three criteria for continuity, we
have

lim f ( x) lim f ( x) f (1) A 5 2 f (1) A 3

x 1

x 1

This means that f is continuous for all x only when A=-3

104

Example 24

Find numbers a and b so that the following function is

continuous everywhere.

ax

if x -1

f ( x ) x 2 a b if 1 x 1

bx
if x 1

Solution:

Since the parts f are polynomials, we only need to

choose a and b so that f is continuous at x=-1 and 1.
f ( x) lim f ( x) f (1) a 1 a b 2a b 1
At x=-1 xlim
1
x 1
f ( x) lim f ( x) f (1) 1 a b b a 2b 1
At x=1 xlim
1
x 1

We have a=-1/3 and b=1/3 for f is continuous everywhere

105

Continuity on an Interval

A function f(x) is said to be continuous on an open interval

a<x<b if it is continuous at each point x=c in that interval.
f is continuous on closed interval axb, if it continuous
on the open interval a<x<b and
lim f ( x) f ( a )

xa

lim f ( x ) f (b)

x b

f ( x) 1 x 2 is continuous on [-1,1]

106

Example 25
f ( x)

x2
x3

Discuss the continuity of the function

on the
open interval -2<x<3 and on the closed interval -2x3
Solution:

The rational function f(x)is continuous for all x except

x=3. Therefore, it is continuous on the open interval
-2<x<3 but not on the closed interval -2x3,since it is
discontinuous at the endpoint 3 (where its denominator is
zero). The graph of f is shown in below Figure.

107

The Intermediate Value Property

Suppose that f(x) is continuous on the interval axb and L

is a number between f(a) and f(b), then there exists a
number c between a and b, such that f(c)=L.

108

Corollary

If f is continuous on the closed interval [a,b], and f(a)

and f(b) have opposite signs, then there exists a number c
in (a,b) where f(c)=0.

109

Example 26

Show that the equation

1<x<2

x2 x 1

1
x 1

has a solution for

Solution:
1
x 1 . Then

Let
f(1)=-3/2 and f(2)=2/3. Since f(x)
is continuous for 1x2, it
follows from the intermediate
value property that the graph
must cross the x axis somewhere
between x=1 and x=2.
f ( x) x 2 x 1

110

Summary
Function:
domain and range of a function
composition of function f(g(x))
Graph of a function:
x and y intercepts,
Piecewise-defined function, power function
Polynomial, Rational function, Vertical line test
Linear function:
Slope, Slope-intercept formula, point-slope formula
Parallel and perpendicular lines.
111

f(x)L
lim
x
c

Function Models:
Market equilibrium: law of supply and demand
Shortage and surplus, Break-even analysis
Limits:
Calculation of limits: limits of polynomial and

rational function, limits at infinity: calculation of

limits at the infinity (Reciprocal power Rules),
Infinite limit, One sided limit, Existence of limit

Continuity of f(x) at x=c:

Continuity on an interval, Continuity of

polynomials
and rational function, Intermediate value property

112