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1
FOREIGN TRADE UNIVERSITY
PhD. DANG LE QUANG
Lecture note
ADVANCED MATH 2
Ho Chi Minh city - 2022

FOREIGN TRADE UNIVERSITY
PhD. DANG LE QUANG
Lecture note
ADVANCED MATH 2
Ho Chi Minh city - 2022

Contents
1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN ECONOMICS

........................................................................ 5
1.1. Review of single variable calculus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.1. Some basics of functions of one variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.2. Limit of a function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.1.3. Derivative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.2. Introduction to functions of one variable in economics . . . . . . . . . . . . . . . . . . . . . 13
1.3. applications of number sequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.3.1. Geometric sequence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.3.2. Applications in financial analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4. Applications of continuity in mathematics and in economics . . . . . . . . . . . . . . . 18
1.5. Applications of derivatives in economic analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.5.1. Derivatives and Marginal Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.5.2. Elasticity Coefficient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.5.3. Law of diminishing marginal utility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.5.4. Average cost function, relationship between average cost function and marginal
function. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.5.5. Extreme values of economic function of one variable. . . . . . . . . . . . . . . . . . . . 22
1.6. Applications of integral calculus in economic analysis . . . . . . . . . . . . . . . . . . . . . 24
1.6.1. Some integral expressions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.6.2. Basic integral formulas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.6.3. Find total cost from marginal cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1.6.4. Exercises about finding surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2. Some open problems on functional analysis (in one variable) . . . . . . . 29

2.1. The Theorem of Di↵erentiable Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2
2.2. Eliminating the indeterminate form using l’Hospital . . . . . . . . . . . . . . . . . . . . . . . 31
2.2.1. Multiplication indeterminate form (Zero Times Infinity). . . . . . . . . . . . . . . . 32
2.2.2. Subtraction indeterminate form (Infinity Minus Infinity). . . . . . . . . . . . . . . . 32
2.2.3. Power infinity indeterminate form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.3. Taylor ’s series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.4. Improper integral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.4.1. The properties of convergence and divergence . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3. Di↵erentiation of Functions of Several Variables . . . . . . . . . . . . . . . . . . . . 39

3.1. Basic definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.2. Limit of the function of n variables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.3. Continuity of the function of n variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.4. Derivative and di↵erential of functions of n variables . . . . . . . . . . . . . . . . . . . . . . 41
3.4.1. first derivative and di↵erential. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.4.2. n-order Di↵erential and derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.4.3. Derivatives and di↵erentials of composite and implicit functions . . . . . . . . 45
3.5. Some application of di↵erential calculus of functions of n variables. . . . . . . . . 47
3.5.1. Cc tr không có diu kin ràng buc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.5.2. Constrained extreme value of a function under one or more conditions. . 50
3.5.3. Minimum and maximum values of a function on a closed and bounded set . .
54
4. APPLICATIONS FUNCTIONS OF MULTIPLE VARIABLES IN ECON-

OMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
4.1. Partial derivative and marginal value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
4.2. Partial elasticity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4.3. law of diminishing marginal utility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
4.4. Homogeneous functions and the efficiency scale of production problem . . . . . 60
4.5. Indi↵erence and isoquant curve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
4.6. Economic applications of implicit function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.7. Growth rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.8. Unconditional and conditional extreme values of economic function of multi-
variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
3
ADVANCED MATH 2 PhD. Dang Le Quang. Tel. 0764060787
5. SERIES, DIFFERENTIAL EQUATION AND DIFFERENCE EQUA-

TION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
5.1. Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5.1.1. Definition and properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
5.1.2. alternating series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.2. Power series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
5.3. Di↵erential equations and applications of di↵erential equations in economics 76
5.3.1. Di↵erential equation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
5.3.2. Some common 1st order di↵erential equation . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5.4. Di↵erence equations and applications of di↵erence equations in economics . 81
5.4.1. Di↵erence and di↵erence equations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.4.2. Solving the 1 order of di↵erence equation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
5.4.3. The applications in economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
TÀI LIU THAM KHO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4
Chapter 1
APPLICATIONS OF FUNCTIONS
OF ONE VARIABLE IN
ECONOMICS
1.1. Review of single variable calculus
1.1.1. Some basics of functions of one variable
Definition 1.1. Let X, Y be subsets of R. Function f : X ! Y is called a function

of one variable. The set X is called the domain of f , and is denoted by Df ,the set of
destination of the function f , f (X), is called the range of f . A function, its domain, and
its range, are declared by the notation:
f :X ! Y
x 7! f (x) = y
Or y = f (x), which provides us a way to return the value of the function f at an element
x, x is called a independent variable and y = f (x) is the value of the function at x. If
f is determined by a expression without any explanation is given then it automatically
means the domain of the function is a set of all the elements x such that the expression
is defined.
Example 1.1. Find the domains of these following functions:

p
a. Suppose y = 9 x2 . Its domain is D = [ 3, 3].
b. Suppose y = cos(x). Its domain is D = R.
5
1
c. Suppose y = p +log(x 2). The expression is defined if 10 x > 0 and x 2 > 0.
10 x
So, its domain is D = (2, 10).
F Function composition
Let X, Y, Z be subsets of R. If function f from X to Y f : X ! Y and function
g : Y ! Z, ”function composition” of f , g denoted by g f is a function such that:
g f :X ! Z
x 7! g f (x)
or g f (x) = g f (x) . e.g y = cos(x3 ) is the function composition of y = cos(u) and

u = x3 .
F Inverse function
Suppose X, Y ⇢ R and the function f : X ! Y is a bijection. Then, the function
f (x) has an inverse function g : Y ! X such that g f (x) = x, 8x 2 Df and f g(x) ,
8x 2 Dg . We denote the inverse function of f (x) as f 1 (x).
Example 1.2. Find the inverse functions of these following functions:

x+5
a. The inverse function of y = ex is y = ln(x). inverse function of y = 4x 5 is y = .
4
F Monotonic function
Let X, Y be subsets of R. The function f : X ! Y is called strictly increasing (or
strictly decreasing) on X if for all x1 , x2 2 X:
x1 < x2 (hoc x1 > x2 ) ) f (x1 ) < f (x2 ) hoc f (x1 ) > f (x2 )
We call a function f (x) is monotonically increasing or monotonically decreasing on X if

for all x1 , x2 2 X:
x1  x2 (hoc x1 x2 ) ) f (x1 )  f (x2 ) hoc f (x1 ) f (x2 )
In general, a function, which is either entirely non-increasing or non-decreasing, is called

a monotonic function. The term monotonic gives us an illustration of the image of the
graph of a function on its domain X: the graph of a increasing (decreasing) function goes
up (goes down) from the left to the right.
Example 1.3. Find the intervals in which the following functions are increasing or de-
creasing in their domains:
a. f (x) = x is strictly increasing on R.
CHAPTER 1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN 6

ECONOMICS
b. f (x) = cos(x) is strictly increasing on the interval ( ⇡ + k2⇡, k2⇡) and strictly de-
creasing on the interval (k2⇡, ⇡ + k2⇡).
F Bounded function:
Let X, Y be subsets of R. A function f : X ! Y is bounded above or below in X ⇢ R
if there exists a number M such that:
f (x)  M hoc f (x) M for all x 2 X
If a function f (x) is either bounded above or bounded below on X, we says f (x) is

bounded on X. In other words, the function f (x) is bounded on X if there exists a
positive numberM such that f (x)  M for all x 2 X.
Example 1.4. Consider these following functions:
a. the function y = sin(x)is bounded above R since 1  sin(x)  1. function y = x2 is

bounded below since x2 is always greater or equal to 0 for all x 2 R.
F Odd function and even function:

We call a set X ⇢ R symmetrical if for all x 2 X we have x 2 X.
• a function f (x), which is defined on a symmetrical set X, is called a even function

if for all x 2 X we have f ( x) = f (x). e.g y = x4 , y = cos(x), y = |x| are even
functions. The graph of a even function is unchanged under reflection in the y-axis.
• a function f (x), which is defined on a symmetrical set X, is called a odd function

if forr all x 2 X we have f ( x) = f (x). e.g y = x3 , y = sin(x) are odd functions.
The graph of an odd function will be symmetrical about the origin.
F some of the most commonly used functions
1. Power function: y = x↵ (↵ 2 R, ↵ 6= 0). The domain of this function depends on ↵.
• when ↵ is a positive integer, D = R.
• when ↵ is a negative integer, D = R \ {0}.
• when ↵ is a positive non-integer, D = [0, +1).
• when ↵ is a negative non-integer D = (0, +1).
the function is strictly increasing if ↵ > 0 and strictly decreasing if ↵ < 0. the graph
of this function always passes through the point (1, 1).

ECONOMICS
2. Exponential function: y = ax (a > 0, a 6= 1). The domain of a exponential function

is D = R and the range is (0, +1). The function is increasing if a > 1 and is decreasing
if 0 < a < 1. The graph of this function always passes through the point (0, 1). The
graph always lies above the x-axis and has the x-axis as a horizontal asymptote.
3. Logarithmic function: y = loga (x) (a > 0, a 6= 1). The domain is D = (0, +1)
and its inverse function is y = ax . The graph of the logarithmic function and the graph
of the exponential function are reflection of each other in the line y = x. The function
is increasing when a > 1 and is decreasing when 0 < a < 1.
4. Trigonometric functions:
• The functions y = sin(x); y = cos(x) have the domains defined as D = R,and

their range are [ 1, 1], they are periodic with period 2⇡.
n⇡ o
• The function y = tan(x) has the domain D = R \ + k⇡ : k 2 Z and the range
⇣ ⇡ ⇡
⌘2
R, it is strictly increasing on + k⇡, + k⇡ , and is periodic with period ⇡.
2 2
• The function y = cot(x) has the domain D = R \ {k⇡ : k 2 Z},and the range R,
it is strictly increasing on k⇡, (k + 1)⇡ , and is periodic with period ⇡.
F Inverse trigonometric functions:
1. The function y = arcsin(x).

h ⇡ ⇡i
• The function y = sin(x) is strictly increasing on , therefore its inverse
2 2
function is x = arcsin(y). x denotes the independent variable and y denotes the
dependent variable, then the inverse function is denoted by y = arcsin(x).
h ⇡ ⇡i
• The function y = arcsin(x) has the domain D = [ 1, 1] and the range , .
2 2
Moreover, its inverse function y = arcsin(x) is an odd and increasing function.
2. The function y = arccos(x).
• The inverse function of y = cos(x) on the interval [0, ⇡] is denoted by y = arccos(x).

• The function y = arccos(x) has the domain D = [ 1, 1], and the range [0, ⇡].
Moreover, the function y = arccos(x) is a decreasing function.
3. The function y = arctan(x).
• The
⇣ ⇡ function
⌘ y = arctan(x) is inverse function of the function y = tan(x) on
⇡
, .
2 2
⇣ ⇡ ⇡⌘
• The function y = arctan(x) has the domain D = R, and the range , .
2 2
Moreover, the function y = arctan(x) is an odd and increasing function.

ECONOMICS
4. The function y = arccot(x).
• The function y = arccot(x) is the inverse function of y = cot(x) trong (0, ⇡).
• the function y = arccot(x) has the domain D = R, and the range (0, ⇡). Morover
y = arccot(x) is a decreasing function.
5. In general, Power functions, exponential functions, logarithmic functions, trigonometric

functions and inverse trigonometric functions are called basic elementary functions.
From elementary functions, by adding subtracting, multiplying or dividing a finite
number of any of the previous functions we construct more complex functions which
are called elementary functions .
1.1.2. Limit of a function
Definition 1.2. A function f is continuous at a if:
lim f (x) = f (a)

x!a
notice that the the terminology (1.2) requires 3 criteria in order to obtain the continuous
of f at a:
1. f (a) is defined (i.g a belongs with the domain of the function f ).
2. lim f (x) exists.

x!a
3. lim f (x) = f (a).

x!a
Example 1.5. Find the sets of points where these following functions are discontinuous
x2 x 2
(a) f (x) =
x 2
8
< 1 if x 6= 0
(b) f (x) = x2
:1 if x = 0
8 2
<x x 2
if x 6= 2
(c) f (x) = x 2
:
1 if x = 2
Solution
(a) Since f (2) is not defined, f is discontinuous at 2.

ECONOMICS
(b) Here, f (0) = 1 is defined but

1
lim f (x) = lim =1
x!0 x!0 x2
So, f is discontinuous at 0.
(c) We consider:
x2 x 2 (x 2)(x + 1)
lim f (x) = lim = lim = lim (x + 1) = 3
x!2 x!2 x 2 x!2 x 2 x!2
We see lim = 3 6= f (2) = 1 so f is discontinuous at 2.

x!2
Definition 1.3. A function f is called continuous at a if:
lim f (x) = f (a)

x!a+
and left continuous at a if:
lim f (x) = f (a)

x!a
Definition 1.4. A function f is called continuous on a interval if it is continuous at

each point on that interval.
p
Example 1.6. Prove that the function f (x) = 1 1 x2 is continuous in the interval
[ 1, 1].
Solution
With 1 < a < 1, we have:

p p
lim f (x) = lim 1 1 x2 = 1 lim 1 x2
x!a x!a x!a
q p
=1 lim (1 x2 ) = 1 1 a2
x!a
= f (a)
Consider 2 points at the edge, we have:
lim f (x) = 1 = f ( 1)
x! 1+
lim f (x) = 1 = f (1)

x!1
Therefore, f is right continuous at 1 and left continuous at 1. That leads to f is

continuous on [ 1, 1].
Theorem 1.1. If f and g are continuous at a and c which are constants, these following
functions are too continuous at a:

ECONOMICS
1. f + g
2. f g
3. cf
4. f g
f
5. nu g(a) 6= 0
g
1.1.3. Derivative
Definition 1.5. Derivative of a function f at a denoted by f 0 (a) is :
f (a + h) f (a)
f 0 (a) = lim
h!0 h
If this limit exists, we write x = a + h. Then, h = x a and h approaches 0 if and only

if x approaches a. Therefore, there is an equivalent definition of derivative as below:
f (x) f (a)
f 0 (a) = lim
x!a x a
when the limit above exists.
Example 1.7. Find the derivative of f (x) = x2 8x + 9 at a.
Solution
As definition of the derivative (1.5), we have:

⇥ ⇤ ⇥ ⇤
0 f (a + h) f (a) (a + h)2 8(a + h) + 9 a2 8a + 9
f (a) = lim = lim
h!0 h h!0 h
2
a + 2ah + h 2 2
8a 8h + 9 a + 8a 9 2ah + h2 8h
= lim = lim
h!0 h h!0 h
= lim (2a + h 8) = 2a 8
h!0
Definition 1.6. The function is f di↵erentiable at a if f 0 (a) exists. A function is

di↵erentiable on an open interval (a, b) [or (a, 1) or ( 1, a) or ( 1, 1)] if it is
di↵erentiable at every element on that interval.

ECONOMICS
Some of the general di↵erentiation formulas

0 0
xn = n · xn 1 u↵ = ↵ · u↵ 1 · u0 u + v = u0 + v 0
p 0 1 p 0 u0
x = p u = p u v = u0 v0
✓ ◆0 2 x ✓ ◆0 2 u0 ✓ ◆ 0
1 1 1 u u u0 v uv 0
= = =
x x2 u u2 v v2
0 0 0 1
sin(x) = cos(x) sin(u) = u0 cos(u) arcsin(x) =p
1 x2
0 0 0 1
cos(x) = sin(x) cos(u) = u0 sin(u) arccos(x) = p
1 x2
0 1 u00 0 1
tan(x) = tan(u) = arctan(x) =
cos2 (x) cos2 (u) 1 + x2
0 1 0 u0 0 1
cot(x) = 2
cot(u) = arccot(x) =
sin (x) sin2 (u) 1 + x2
x 0 0 0
e = ex e u = u0 · e u ax = ax · ln(a)
0 1 0 u0 0
ln(x) = ln(u) = au = au · ln(a) · u0
x u

ECONOMICS
1.2. Introduction to functions of one variable in eco-

nomics
F Supply function and demand function
The economists use terminologies supply functions and demand functions to shows
the functional relationship between quantity demanded and quantity supplied for a com-
modity and its various determinants. That relationship depends on the price of the
commodities. The equation for supply function and demand function is of the forms as
below:
• The supply function: QS = S(p)
• The demand function: QD = D(p) where,
– p is the price of the commodity.
– QS is quantity supplied: which is the quantity of commodities that producers

are willing to sell at a particular price at a particular point of time.
– QD is quantity demanded: which is the quantity of commodities that consumers

are willing to purchase at a particular price at a particular point of time.
When we consider the model of the supply function, we construct a assumption that
all other factors are constants.
According to the law of market in economics for normal commodities, the supply
function is a increasing function and the demand function is decreasing function. The
graph of the supply function (demand function) is called the supply curve (demand
curve). The point at which the two curves intersect is the equilibrium market point.
• Watch out: In economics, there calls popularly the inverse function of the function
QS = S(p) the supply function and calls the inverse of the function QD = D(p) the
demand function.
1
QS = S(p) , p = S (QS )
1
QD = D(p) , p = D (QD )
F Cost function???: is a function which shows the dependence of the total cost
(TC) on the quantity (Q): T C = T C(Q).
F Revenue function is a function which shows the dependence of the total revenue
(TR) on the quantity (Q): T R = T R(Q).
F Profit function : is a function which shows the dependence of the total profit
⇡ (TR) on the quantity (Q): ⇡ = ⇡(Q).

ECONOMICS
The profit function can be found by ⇡(Q) = T R(Q) T C(Q).

F Utility function (consumption function): The economist uses consumption func-
tion to show the relationship between the consumption and the yields (Y): C = C(Y ).
F Saving function: is a function which shows the dependence of the savings (S)
on the yields (Y ): S = S(Y ).
F Short-run production function
The economist uses the terminology production function to show the relationship
between the output (the total quantity of goods or services produced in a given time
period) of a producer and inputs, which is called Factors of Production,examples of
inputs include labor (workers’ time), fuel, materials,.. . . .
In economics, the terminologies short-run and long-run are defined as follows
– the short run is generally defined as the time horizon over which at least one
factor of production are ”sticky,” or inflexible.
– The long run is a situation where all main factors of production are variable.
In analyzing production, economists are often interested in two important factors of

production: (Capital) and (Labour),which are denoted by K and L. For example,
the production function is in form of Cobb-Douglas depending on one of two factors
that is capital and labour: Q = aK ↵ ; Q = bK vi a, b, ↵, are positive numbers.
F The investment function refers to investment -interest rate relationship:
I = I(r), where r = rate of interest.
F Hàm qu vn theo thi gian:??? K = K(t), where t = time.
F The investment function refers to investment -time relationship: I =
I(t), where t = time.

ECONOMICS
1.3. applications of number sequences
1.3.1. Geometric sequence
Definition 1.7. A geometric progression, also known as a geometric sequence, is a

sequence (un ) such that: un+1 = un · q, 8n = 1, 2, 3, . . . with q is a constant. We call
q the common ratio. Moreover, when |q| < 1, the geometric sequence is also called
the infinitely decreasing geometric sequence. We have these following formulas:
8
< un = u1 · q n 1
: Sn = u1 + u2 + . . . + un = u1 · (1 qn)
1 q
When a geometric sequence is a infinitely decreasing geometric sequence, i.g |q| < 1,
+1
X u1
S= u n = u 1 + u2 + . . . + un + . . . =
1 q
n=1
1.3.2. Applications in financial analysis
a) Calculate present value and future value of money

Suppose a person has a sum of money A deposited in aa bank with a fixed rate of
interest.Then, After a period of time, that one will receive a larger amount of money
is B = A+ the interest .
That amount of money B is called the future value of the current asset A invested
today. A is called the present value of B that one will possess in the future.
In the money market, the rate of interest is viewed as the price of funds for get a
loan. Interest rates are regulated very di↵erently. In economics, when one analyzes
financial activity, it is assumed that there is a common interest rate. We denote the
general interest rate by r.
Suppose a person has a sum of money A, then after one year, with the interest rate
per year is r, that person is going to have a lump sum of the interest and the principal
is:
Bt = A + rA = (1 + r)A
Let Bt be the amount of money the person have after t years, we have a geometric
sequence with common ratio q = 1 + r. One has:
Bt = B0 q t = A(1 + r)t

ECONOMICS
The future value of A that the person having today after t years is:
B = A(1 + r)t
The present value of B that the person obtaining after t years is:
t B
A = B(1 + r) =
(1 + r)t
Example 1.8. An investment project requires a current cost of 200 million VND
and will bring in 300 million VND in 4 years. With interest rate is 6%, Evaluate
whether this project should take place?
Solution
We have the future value of 200 million VND after 4 years is:
A = 200 · (1 + 0.06)4 ⇡ 252, 5 (million VND)
This amount is less than 300 million we will obtain, so the project should take place.
b) Ordinary Annuity and Capital flows

Ordinary Annuity An ordinary annuity is a series of equal payments made at the end
of consecutive periods over a fixed length of time. While the payments in an ordinary
annuity can be made as frequently as every week, in practice they are generally made
monthly, quarterly, semi-annually, or annually. An ordinary annuity paid yearly is
called an annuity.
Union dues and instalment payments, which are paid monthly or annually, are ordi-
nary annuities.
By using the method for calculating the future value and present value as above
combined with the formula of the sum of a geometric sequence, we can calculate the
present value and future value of an ordinary annuity.
Example 1.9. An investment project after one year will bring you $3000 per year,
consecutively for the next 7 years. Ask that the capital flow must be initially invested.
How much can you accept that project if the annual interest rate is 10% ?
Gii
The present value of cash flows is (PV):

3000 3000 3000
PV = + 2
+ ... +
1 + 0.1 (1 + 0.1) (1 + 0.1)7

ECONOMICS
⇣ ⌘
✓ ◆ 10
1 10 7
1 1 1 11 11
= 3000 + 2
+ ... + = 3000 10
⇡ 14605, 26
1, 1 1, 1 1, 17 1 11
So, the project just should take place if the original capital is less than $14605,26.
Example 1.10. Suppose you intend to buy a car by making installment payments.
By this method, after one month from the time of receipt, you have to pay regularly
each month a certain amount of money, consecutively for 60 months. Suppose the
price of a motorcycle at the time you buy a car is $15000 and the bank interest
rate is 1%/month. With what is the monthly payment, is the installment purchase
acceptable?
Solution
Suppose a monthly payment is a. The present value of the entire installment cash
flow at the time of receipt is:
✓ ⇣ 100 ⌘50 ◆
100
1
a a a 101 101
PV = + + ... + = ⇡ 44, 96a
1 + 0.01 (1 + 0.01) 2 (1 + 0.01)50 100
1
101
The installment purchase will be equivalent to the purchase of immediate payment
if:
P V = 49, 96a = 15000 , a ⇡ 300, 24

ECONOMICS
1.4. Applications of continuity in mathematics and

in economics
F Weierstrass theorem
Theorem 1.2. If the function f (x) is continuous on the interval [a, b], then it reaches
its maximum and minimum values on the interval [a, b], i.g, there exist x1 , x2 2 [a, b]
, such that:
f (x1 ) = max f (x) và f (x2 ) = min f (x)

x2[a,b] x2[a,b]
F Intermediate value theorem
Theorem 1.3. Assume that f (x) is continuous on [a, b] and f (a) 6= f (b). If you
take on any value c between f (a) and f (b) that is f (a)cf (b) or f (b)cf (a), there exists
a x0 2 (a, b) such that
Corollary 1.1. If the function f (x) is continuous on [a, b] and f (a) · f (b) = 0,then,
there exists x0 2 (a, b) such that f (x0 ) = 0.i.g, the equation f (x) = 0 has at least
one solution in (a, b).
Example 1.11. The following equations describe the market equilibrium model
QS = QD :
50
QS = 0, 1P 2 + 5P + 10; QD =
P 2
Prove that the above model has an equilibrium price on the interval (3, 5). We have:
50
QS = QD , 0, 1P 2 + 5P + 10 = , 0, 1P 3 + 4, 8P 2 70 = 0 (1.1)
P 2
Consider the function f (P ) = 0.1P 3 + 4.8P 2 70 continuously on [3, 5]. Because we

have f (3) · f (5) < 0 , the solution to the equation (1.1) is on the interval (3, 5). It
follows that the above model has an equilibrium price on (3, 5).

ECONOMICS
1.5. Applications of derivatives in economic analy-

sis
1.5.1. Derivatives and Marginal Values
Given the function y = f (x) where x, y are economic variables, let x0 be a point in
the domain of the function. The following function:
M y = f 0 (x)
is called Marginal function. The value of My at x0 , M y(x0 ),is called Marginal value
of f (x) at the element x0 ( or in short, marginal value at x0 ).
Interpretation: at x0 , When x changes one unit , then the value of the function f (x)
changes a quantity approximately M y(x0 ) = f 0 (x0 ).
p
Example 1.12. Suppose the short run production function is given by Q = 40 K;
K > 0.
a. Find the marginal Product of Capital M P K = Q0 (K).

b. At K0 = 100, if K is increased by one unit, how much will the units produced
by the company change?
Solution
20
a. We have: M P K = Q0 (K) = p
K
20
b. We have: M P K(100) = p = 2. So, K0 = 100. We can conclude that if K
100
is increased by one unit, the company can increase by 2 units of its production.
Example 1.13. A monopolist firm sells its products in the market with the demand
function given by:
Q = 1500 5p
Calculate marginal revenue at the quantity Q = 650 and interpret the result.
Solution
1
We have p = 300 Q. So, the revenue function is:
5
⇣ 1
⌘ 1 2
T R = 300 Q Q = 300Q Q
5 5

ECONOMICS
The marginal revenue function is calculated by:

2
M R = 300 Q
5
At the quantity Q = 500, we have:
2
M R = 300 · 650 = 40
5
That means, at the quantity Q = 500, when one more unit is produced, the total
revenue of the company will increase by $40
1.5.2. Elasticity Coefficient
Given the function y = f (x) where x, y are economic variables, let x0 be an element
in the domain of the function. The following value
y 0 (x0 )
"yx (x0 ) = x0
y (x0 )
is called the Elasticity Coefficient of y expressed in terms of a variable x at x0 .
Interpretation: At x0 , when x changes by 1% ,the value of the function y = f (x)

changes by about "yx (x0 ) %.
Example 1.14. If the demand function is describe as Q = 1400 p2 , the elasticity

coefficient at the price p is:
Q0 2p 2p2
"= ·p= · p =
Q 1400 p2 p2 1400
When p = 20, we have " = 0.8. This explains that at p = 20, if the price increases
by 1%, the demand will decrease by about 0.8%.
1.5.3. Law of diminishing marginal utility
Let y = f (x)be the function, where x, y are economic variables. The function y =
f (x) is said to obey the law of diminishing marginal utility if and only if: when the
value of the argument x increases, the marginal value M y decreases, or M y 0 = f (x)0.
For example, a simple case that is f 00 (x) < 0 for all x in its domain.
Example 1.15. Given a production function Q = aL↵ (a > 0, ↵ > 0, L > 0), find
the condition on ↵ in order to Q obeys the law of diminishing marginal utility.
Solution

ECONOMICS
We havhave:
Q0 = ↵aL↵ 1
; Q00 = (↵ 1)↵aL↵ 2
Q00 < 0 , ↵ 1<0,↵<1
So, 0 < ↵ < 1.
1.5.4. Average cost function, relationship between average

cost function and marginal function.
Given y = f (x) with respect to x, y which are economic variables. the function:
y
Ay = (x > 0)
x
is called average cost function (or average function). We have:
y
⇣ y ⌘0 y0
Ay 0 = = x = My Ay
(x > 0)
x x x
Therefore:
+ On the interval that the average cost function increases, M y > Ay (marginal
curve is above the average curve).
+ on the interval that the average cost function decreases, M y < Ay (marginal
curve is below the average curve).
+ At the point which the average function reaches its extremes, then M y Ay =
0 ) M y = Ay (the average line collides the marginal line at the point at which
the average line reaches its extremes).
Example 1.16. Given the cost function T C = T C(Q) (Q > 0):
a. Analyze the relationship between the average cost function AC(Q) and the
marginal cost function M C(Q).
We have:
MC AC
AC 0 (Q) = (Q > 0)
Q
So, on the interval that the average cost function increases, we have M C > AC
(the marginal cost curve is above the average cost curve).
and on the interval that the average cost function increases, we have M C > AC
(the marginal cost curve is below the average cost curve).

ECONOMICS
b. At the point which the average function reaches its extremes, then M y Ay =
0 ) M y = Ay (the average line collides the marginal line at the point at which
the average line reaches its extremes). At the point which the average function
reaches its extremes, then M C = AC (the average line collides the marginal line
at the point at which the average line reaches its extremes).
c. Apply for this case analysis T C(Q) = 5Q2 + 12Q + 125 (Q > 0):
T C(Q) 125
AC(Q) = = 5Q + 12 +
Q Q
125
) AC 0 (Q) = 5
Q2
AC 0 (Q) = 0 , Q2 = 25 , Q = 5 ( do Q > 0 )
- If Q > 5, then the average cost function increases and M C > AC (the
marginal cost curve is below the average cost curve)
- If Q < 5 then the average cost function decreases and M C < AC (the
marginal cost curve is below the average cost curve)
- If Q = 5, then the average cost function reaches its extremes and M C = AC
(the average line collides the marginal line at the point at which the average
line reaches its extremes).
1.5.5. Extreme values of economic function of one variable
a. Find quantity of labor L to maximizing quantity

Example 1.17. Given the production function Q = 50L2 L4 (L > 0). Find
quantity of labor L to maximizing quantity.
Solution
We have:
Q = 50L2 L4 (L > 0) ) Q0 = 100L 4L3 ) Q00 = 100 12L2

Q0 = 0 , 100L 4L2 = 0 , L = 5 since L > 0
Building table of signs and variations of the function Q, we have Q reaches

extreme value at L = 5.
p
5
Example 1.18. Given a short-run production function Q = 100 L3 (L > 0)
and the price of the product is p = 5 USD; the price to hire an employee is
pL = 3 USD. Find the level of employment maximizing profit.
Solution

ECONOMICS
We have:
p
5
T R = pQ = 500 L3 , L > 0
T C = pL L = 3L
p
5
⇡ = TR T C = 500 L3 3L, L > 0
2 2
⇡ 0 = 300L 3 3; ⇡ 0 = 0 , L = 100 , L = 100000
3
building table of signs and variations, we have ⇡ reaches its maximum value at
L = 100000.
b. Find the quantity that minimizes cost and maximizes profit.
Example 1.19. Given the cost function T C = 5Q3 240Q2 + 130Q (Q > 0).
Find the quantity Q that minimizes average cost.
Solution
We have:
T C = 5Q3 240Q2 + 130Q

) AC = 5Q2 240Q + 130
AC 0 = 10Q 240
AC 0 = 0 , Q = 24
building table of signs and variations, we have AC reaches its minimum value at
L = 100000.
Example 1.20. Given the producer’s revenue function and cost function as
follows:
T R = 1400Q 7, 5Q2 ; T C = Q3 6Q2 + 140Q + 750
Find the optimal quantity (in order to obtain the maximum profit).
Solution
We have the producer’s profit function for this case is:
⇡ = TR TC = Q3 1, 5Q2 + 1260Q 750

) ⇡0 = 3Q2 3Q + 1260; ⇡ 0 = 0 , Q = 20(Q > 0)
So, the optimal quantity is Q = 20.

ECONOMICS
1.6. Applications of integral calculus in economic

analysis
1.6.1. Some integral expressions
– From the marginal revenue given by the function M R = (T R)0 , we deduce the
total revenue is defined by the function as follows:
Z
TR = MR
– From the marginal cost given by the function M C = (T C)0 , we deduce the total
cost is defined by the function as follows:
Z
TC = MC
– From the marginal product of labor given by the function M P L = Q0(L) , we

deduce the production function where the amount produced is given as a function
of the labor used.
Z
Q(L) = MP L
– From the marginal product of capital given by the function M P K = Q0(K) ,

we deduce the production function where the amount produced is given as a
function of the capital used.
Z
Q(K) = MP K
0
– From the function of marginal propensity to save M P S = S(Y ) we have the
(hàm sn lng S(Y)???) production function of labor::
Z
S(Y ) = MP S
– Besides, we also have some more functions such as

TR TC
AR = ; AC = ;...
Q Q
1.6.2. Basic integral formulas
List of basic integral formulas:

Z
1
x↵ dx = x↵+1 + C
↵+1

ECONOMICS
Z
adx = ax + C
Z Z Z
f (x) ± g(x) dx = f (x)dx ± g(x)dx
Z Z
k · f (x)dx = k f (x)dx
Example:
Z
3 x4
a) x dx = +C
4
Z Z
p 1 1 1 3 4
b) 3
xdx = x 3 dx = 1
x 3 +1 + C = x 3 + C
3 +1 4
Z
2 3 2
c) 2x4 + 3x3 + 2x2 + 5)dx = x5 + x4 + x3 + 5x + C
5 4 3
1.6.3. Find total cost from marginal cost
Given My = f 0 (x), it leads to:

Z
f (x) = My dx
1
Example 1: Given production function of labor: M P L = 120L 3 . Find production
function Q(L) , given that Q(125) = 100000.
Solution
We have the formformula:
Q0(L) = M P L
Z Z
1 1 1
+1 2
) QL = M P LdL = 120L 3 dL = 120 ⇥ L 3 + C = 180L 3 + C
1
+1
3
Since Q(125) = 100000,
2
180 ⇥ 125 3 + C = 100000 ) C = 95500
From here, we have the formula for the production function Q(L) isis:
2
Q(L) = 180L 3 + 95500
Example 2: Given marginal cost function:
M C(Q) = 4Q 20

ECONOMICS
a. Find C(Q) , given that C(50) = 100000.

b. Tı̀m C(Q) given that constant cost is F C = 3000.
SolutionSolution
a. We havehave:
Z Z
C(Q) = CQdQ = (4Q 20)dQ = 2Q2 20Q + C
Since C(50) = 100000,
C(50) = 2 ⇥ 502 20 ⇥ 50 + C = 100000 ) C = 96000
So, the formula of C(Q) in this situation isis:
C(Q) = 2Q2 20Q + 96000
b. We have:
F C = C(0) = 2 ⇥ 02 20 ⇥ 0 + C = 3000 ) C = 3000
So, the formula of C(Q) in this situation is:
C(Q) = 2Q2 20Q + 3000
Example 3: Given M C(Q) = 30 · e0,3Q . Find C(Q) given that F C = 200000.
Solution
Z Z
1 0,3Q
C(Q) = M CdQ = 30 · e0,3Q dQ = 30 ⇥ e +C
0, 3
Vı̀ F C = 200000 nên:

1 0,3⇥0
F C = C(0) = 30 ⇥ e + C = 200000 ) 100 + C = 200000 ) C = 199990
0, 3
So, the formulas of C(Q) is:
1 0,3Q
C(Q) = 30 ⇥ e +C
0, 3
Example 4: The marginal revenue is defined by given function M R(Q) = 120 2Q.
a. Find the total revenue function.

b. evaluate the quantity Q such that R(Q) > 0.

ECONOMICS
c. Find the demand function.
Example 5: The marginal benefit is defined by the given function: M⇡ = 100Q +

1000.
a. Find ⇡(Q) , given that if the company sells only 100 units of the product, it will
lose 50,000.
b. Find Q in order to ⇡(Q) reaches max.
Example 6: The marginal propensity to consume is defined by given function:
0,5
M P C = 0, 8 + 0, 1Y
a. Find C(Y ) , given that expected consumption is 800.
b. Tı̀m C(Y ) bit C(400) = 350.
Example 7: Given M P S = 16 0, 4Y 0,5 . Find the saving function S(Y ) , given that
S(400) = 0.
1.6.4. Exercises about finding surplus
a. Definition:
– A consumer surplus (CS): the price that the customers are willing to pay
for a product or service is p1 but the equilibrium price of the market (of that
product) is p < p1 .
=) This situation is beneficial to the customer.
=) the di↵erence amount of money in this situation is called consumer
surplus
– Producer Surplus (P S): p2 the equilibrium price of the market (of that
product) p > p2 .
=) This situation is beneficial to the producer.
=) The di↵erence amount of money in this situation is called producer
surplus.
8
<Q = D
D (p)
b. Formulas for costumer Surplus and Producer Surplus:
: QS = S
(p)
8
< Q = p + 60
D
Vı́ d 1: Given: . Find CS; P S.
: QS = 3p 120

ECONOMICS
(a) costumer surplus (b) Producer surplus
Gii
– Step 1: Find Q, p. We have:

8 8 8
< Q = p + 60 < Q + p = 60 < p = 45
() ()
: Q = 3p 120 : 3p Q = 120 : Q = 15
– Step 2: Transform to the inverse demand function and the inverse supply func-
tion:
8 8
< Q = p + 60 < p = 60 QD
D
()
: QS = 3p 120 : p = 40 + 1 QS
3
– Step 3: Find CS, P S by using formulas:

From the formula of CS:
ZQ Z15 ✓ ◆ 15
1 1 2
CS = D(Q) dQ Q p= (60 Q)dQ 45 ⇥ 15 = 60Q Q 45 ⇥ 15
2 0
0
✓ ◆0
1
= 60 ⇥ 15 ⇥ 152 0 675 = 112, 5
2
Similarly, we have P S:
ZQ Z15 ✓ ◆ ✓ ◆ 15
1 1 1
PS = Q p S(Q) dQ = 45 ⇥ 15 40 + Q dQ = 675 40Q + Q2
3 6 0
0 0
✓ ◆
1
= 675 40 ⇥ 15 + ⇥ 152 = 37, 5
6

ECONOMICS
Chapter 2
Some open problems on functional

analysis (in one variable)
2.1. The Theorem of Di↵erentiable Functions
Definition 2.1 (Extreme value of the function ). Given a function f (x) defined on
the interval (a, b) and x0 2 (a, b). A point x0 is called a maximum value (minimum
value ) of the function f (x) if there exists an interval (x0 , x0 + ) ⇢ (a, b) ( > 0)
such that for all x 2 (x0 , x0 + ) , f (x0 ) f (x) f (x0 )  f (x) . Maxima (plural
form of maximum) and minimum are in general called extreme values of the function.
• Be careful: The value of the function at a maximum value (minimum value) is
probably not the greatest value (smallest value) of the function on (a, b). So, Extreme
points can be local or global. Therefore, we say a function f (x) reaches its maximum
value (minimum value) at x0 locally.
Theorem 2.1 ( Fermat’s Theorem). Suppose f (x) is defined on the interval (a, b).
If f (x) is di↵erentiable and has an extreme value at c 2 (a, b), then f 0 (c) = 0.
Geometric meaning: If f (x) is di↵erentiable at an extreme value x0 then the tangent

line to the curve y = f (x) at the point M (x0 , y0 ) parallels to the x- axis.
Theorem 2.2 (Rolle theorem). If f (x) is continuous on the interval [a, b], as well
as, di↵erentiable on the interval (a, b) and f (a) = f (b), then there exists a number
c 2 (a, b) such that f 0 (c) = 0.
Geometric meaning: If f (x) sacrifices sort of necessary conditions stated in Rolle’s

theorem, then there must have a c 2 (a, b) which a tangent line parallel to the x axis
at.
29
Theorem 2.3 ( Cauchy’s theorem). Suppose f (x), g(x) are 2 defined, continuous
on the interval [a, b], and di↵erentiable on the interval (a, b).Then, there exists at
least an element c 2 (a, b) such that:
⇥ ⇤ ⇥ ⇤
f (b) f (a) g 0 (c) = g(b) g(a) f 0 (c)
If g 0 (x) 6= 0, 8x 2 (a, b), then:
f (b) f (a) f 0 (c)

= 0
g(b) g(a) g (c)
Theorem 2.4 ( Lagrange’s theorem). If f (x) is continuous on the interval [a, b],
and di↵erentiable on the interval (a, b), there exists at least one element c 2 (a, b)
such that:
f (b) f (a) = f 0 (c)(b a)
geometric meaning: There exists an element c 2 (a, b) at which the tangent line
parallels to the line connecting two points at the edge.
x0 c
• Note: Suppose x0 = a and x=b a, then b = x0 + x and for any ✓ =
x
(0 < ✓ < 1) or c = x0 + ✓ · x. Therefore, we have the following formula that is
called finite increments formula hoc công thc s gia gii ni??.
f (x0 + x) f (x0 ) = f 0 (x0 + ✓ · x) · x, 0<✓<1
CHAPTER 2. SOME OPEN PROBLEMS ON FUNCTIONAL ANALYSIS (IN ONE30

VARIABLE)
2.2. Eliminating the indeterminate form using l’Hospital
’s rule l’Hospital ’s rule. Suppose f and g are di↵erentiable and g 0 (x) 6= 0 on the
open interval I containing the point a (possibly except at a).Suppose:
lim f (x) = 0 và lim g(x) = 0

x!a x!a
Or:
lim f (x) = ±1 và lim g(x) = ±1

x!a x!a
0 1
In the other word, we have the indeterminate form or , then,:
0 1
f (x) f 0 (x)
lim = lim 0
x!a g(x) x!a g (x)
if the right limit exists (or equal to 1 or 1).

ln(x)
Example 2.1. Find lim .
x!1 x 1
Solution
since:
lim ln(x) = ln(1) = 0 và lim (x 1) = 0

x!1 x!1
0
, the limit is the indeterminate form . Apply L’Hospital ’s rule l’Hospital :
0
0 1
ln(x) ln(x) x 1
lim = lim 0
= lim = lim = 1
x!1 x 1 x!1 (x 1) x!1 1 x!1 x
ex
Example 2.2. Find lim .
x!1 x2
Solution
We have lim ex = 1 and lim x2 = 1, therefore, according to l’Hospital ’s rule:

x!1 x!1
0
ex ex ex
lim 2 = lim 0 = lim
x!1 x x!1 x2 x!1 2x
Since lim ex = 1 và lim 2x = 1, we apply l’Hospital ’s rule once again:

x!1 x!1
0
ex ex ex ex
lim 2 = lim = lim 0 = lim =1
x!1 x x!1 2x x!1 2x x!1 2

VARIABLE)
2.2.1. Multiplication indeterminate form (Zero Times Infin-

ity).
⇥ ⇤
If lim f (x) and lim g(x) are both equal to 1 (or 1), then how lim f (x)g(x)
x!a x!a x!a
is defined? This form is called Indeterminate form 0 · 1. We can consider the
multiplication f g as a form of division by writing as:
f g
fg = or f g =
1/g 1/f
0 1
This transforms the limit into the indeterminate form hay which we can apply
0 1
l’Hospital ’s rule.
Example 2.3. Find lim x ln(x).

x!0+
Solution
The given limit is a indeterminate form since while x ! 0+ , the first factor (x)
1
approaches 0, the second factor ln(x) approaches 1. Write x = , we have
1/x
1
! 1 when x ! 0+ . Therefore, we apply l’Hospital ’s rule:
x
ln(x) 1/x
lim x ln(x) = lim = lim = lim ( x) = 0
x!0+ x!0+ 1/x x!0+ 1/x2 x!0+
2.2.2. Subtraction indeterminate form (Infinity Minus Infin-

ity).
If lim f (x) and lim g(x) are both equal to 1 (or 1) then:
x!a x!a
⇥ ⇤
lim f (x) g(x)
x!a
is called the indeterminate form 1 1. To find the answer, we will try to

transform them into the form of division in order to obtain the indeterminate form
0 1
or .
0 1
✓ ◆
1
Example 2.4. Find lim tan(x) .
x!( ⇡2 ) cos(x)
Solution

VARIABLE)
1 ⇡
⇣ ⌘
Notice that ! 1 and tan(x) ! 1 when x ! . So, this is an in-
cos(x) 2
determinate form. We transform it into the form of division and apply l’Hospital ’s
rule:
✓ ◆ ✓ ◆
1 1 sin(x)
lim tan(x) = lim
x!( ⇡2 ) cos(x) x!( ⇡2 ) cos(x) cos(x)
1 sin(x) cos(x)
= lim = lim =0
x!( ⇡2 ) cos(x) x!( ⇡ ) sin(x)
2
2.2.3. Power infinity indeterminate form.
Power infinity indeterminate forms follows:

⇥ ⇤g(x)
lim f (x)
x!a
1. lim f (x) = 0 and lim g(x) = 0 ! form of 00 .

x!a x!a
2. lim f (x) = 1 and lim g(x) = 0 ! form of 10 .
x!a x!a
3. lim f (x) = 1 and lim g(x) = ±1 ! form 11 .
x!a x!a
The limit of each of these forms can be found by taking the natural logarithm:
⇥ ⇤g(x)
Suppose y = f (x) , then ln(y) = g(x) · ln f (x)
Or by expressing the function as a form of exponent:

⇥ ⇤g(x)
f (x) = eg(x)·ln f (x)
Both of two methods leads to obtain the multiplication indeterminate form g(x) ·
ln f (x) , which is the form of 0 · 1.
cot(x)
Example 2.5. FInd lim+ 1 + sin(4x)
x!0
Solution
First, we should notice that x ! 0+ , we have 1 + sin(4x) ! 1 and cot(x) ! 1,

Since the given limit is an indeterminate form, we set:
h i
cot(x) cot(x)
y = 1 + sin(4x) ) ln(y) = ln 1 + sin(4x) = cot(x) · ln 1 + sin(4x)
Apply l’Hospital ’s rule:

4 cos(4x)
ln 1 + sin(4x) 1 + sin(4x)
lim+ ln(y) = lim+ = lim =4
x!0 x!0 tan(x) x!0+ 1
cos2 (x)

VARIABLE)
From here, We can find the limit of ln(y). To find the limit of y, we notice that
y = eln(y) :
cot(x)
lim+ 1 + sin(4x) = lim+ y = lim+ eln(y) = e4
x!0 x!0 x!0
Example 2.6. Find lim+ xx .

x!0
Solution
Notice that this limit is an indeterminate form since 0x = 0 for all x > 0 but x0 = 1
for all x 6= 0.By expressing the function as an exponential function, we have
x
xx = eln(x) = ex ln(x)
Apply the results obtained from the previous example (2.3), we have lim+ x ln(x) = 0.
x!0
Therefore:
lim+ xx = lim+ ex ln(x) = e0 = 1

x!0 x!0

VARIABLE)
2.3. Taylor ’s series
Definition 2.2. the Taylor series Taylor of a function f at a as follow :

1
X f (n) (a)
f (x) = (x a)n
n!
n=0
f 0 (a) f 00 (a) 2 f (n) (a)
= f (a) + (x a) + (x a) + . . . + (x a)n
1! 2! n!
Definition 2.3. with the special case a = 0, we have the Maclaurin’s series:
1
X f (n) (0)
f (x) = xn
n!
n=0
f 0 (0) f 00 (0) 2 f (n) (0) n
= f (0) + x+ x + ... + x
1! 2! n!
The Taylor ’s series of some special functions.

1
X
1
a. = xn = 1 + x + x2 + x3 + . . .
1 x
n=0
1
X xn x x2 x3
b. ex = =1+ + + + ...
n! 1! 2! 3!
n=0
1
X x2n+1 x3 x5 x7
c. sin(x) = ( 1)n =x + + ...
(2n + 1)! 3! 5! 7!
n=0
X1
x2n x2 x4 x6
d. cos(x) = ( 1)n =x + + ...
(2n)! 2! 4! 6!
n=0
1
X
1 x2n+1 x3 x5 x7
e. tan (x) = ( 1)n =x + + ...
2n + 1 3 5 7
n=0
X1 n
1x x2 x3 x4
f. ln(1 + x) = ( 1)n =x + + ...
n 2 3 4
n=0

VARIABLE)
2.4. Improper integral
Zb
Definition 2.4. An Improper integral is the limit a definite integral f (x)dx as
a
an endpoint of the interval(s) of integration approaches either a specified real number
or positive or negative infinity;
Property.
Zb
1. If f (x)dx is a definite numer =) The integral is convergent.
a
Zb
2. If f (x)dx is infinite or not definite =) The integral is convergent.
a
Example 1: Calculate these following integrals:
Z1
dx
a. A =
x2
1
Z+1
x2
b. B = x·e dx
0
Z+1
dx
c. C = (a > 0; ↵ > 0)
x↵
a
Z1
dx
d. D = p
1 x2
1
Z1
dx
e. E =
1 x
0
2.4.1. The properties of convergence and divergence
I property 1:
1. convergent function + convergent function ! convergent function.

2. convergent function + divergent function ! divergent function.
3. divergent function + divergent function ! divergent function.

VARIABLE)
I Property 2: Suppose f (x) and g(x) are integrable on the interval [a, b] and
0  f (x)  g(x), 8x a, then we have:
Z+1 Z+1 Z+1 Z+1

– If g(x)dx converges then f (x)dx converges and f (x)dx  g(x)dx.
a a a a
Z+1 Z+1
– If f (x)dx diverges then g(x)dx diverges.
a a
Z+1
dx
Example:Consider the convergence or divergence of the integral I = .
x3 + 2
0
Solution
Z+1 Z+1
1 1 dx dx
We have 3  3 , since converges, it leads to converges.
x +2 x x3 x3 +2
0 0
I Property 3: Let f (x) and g(x) be non negative functions and integrable on
the finite interval [a, b]. If:
f (x)
lim =k (0 < k < +1)
x!+1 g(x)
Then these integral:
Z+1 Z+1
f (x)dx and g(x)dx
a a
have the same the convergence and divergence properties.
I Property 4: At indefinite endpoints,Properties of integrals are still applied equiv-

alently. When x ! 0, we still have:
sin(x) ⇡ x
x2
cos(x) ⇡ 1
2
tan(x) ⇡ x
ln(x + 1) ⇡ x
ex ⇡ x

VARIABLE)
Exercise: Whether the following integrals are convergent or divergent :
Z+1 Z+1 2
2x2 e x
a. dx e. dx
2x3 + 1 x2
0 0
Z1 Z1
dx
b. ln(2x)dx f.
1 + cos(2x)
0 0
Z1 Z1
dx sin(2x)
c. x
g. p dx
2e + 1 x
0 0
Z+1 Z+1
dx ln(x)
d. h. dx
x2 + 2x + 3 1 + 2x2
0 1

VARIABLE)
Chapter 3
Di↵erentiation of Functions of
Several Variables
3.1. Basic definitions
Definition 3.1. A funtion f of two variables is a mapping taking each pair of two
real numbers (x, y) in D to a unique real number denoted as f (x, y). The set D is
the domain of f and its range is values of f , i.g:
f (x, y)|(x, y) 2 D
Example 3.1. Calculate f (3, 2) and find the domain of these following functions.
p
x+y+1
(a) f (x, y) =
x 1
(b) f (x, y) = x ln(y 2 x)
Solution
(a) p p
3+2+1 6
f (3, 2) = =
3 1 2
The expression f makes sense if the denominator is non-zero and the quantity
under the square root sign is not negative. So the domain of f is:
D = (x, y)|x + y + 1 0, x 6= 1
(b)
f (3, 2) = 3 · ln(22 3) = 3 · ln(1) = 0
39
Since ln(y 2 x) is defined if and only if (i↵) y 2 x > 0, i.g, x < y 2 , the domain
of f is:
D = (x, y)|x < y 2
Definition 3.2. Function of n variables is a mapping that assigns, respectively, a

number z = f (x1 , x2 , . . . , xn ) to n-vector of real numbers (x1 , x2 , . . . , xn ). We denote
Rn as the set of all such n-vector.
3.2. Limit of the function of n variables
Definition 3.3. Let f be a function of two variables whose domain D contains

points arbitrary near (a, b). We then say that the limit of f (x, y) when (x, y)
approaches (a, b) is L and we write:
lim f (x, y) = L
(x,y)!(a,b)
if for all " > 0, there is a corresponding numer > 0 such that if (x, y) 2 D and:
p
0< (x a)2 + (y b)2 < then f (x, y) L <✏
Other notations for limits of function of two variables .
lim f (x, y) = L or f (x, y) ! L when (x, y) ! (a, b)

x!a
y!b
3.3. Continuity of the function of n variables
Definition 3.4. A function of two variables f is called continuous at (a, b) if:
lim f (x, y) = f (a, b)

(x,y)!(a,b)
We say f continuous on D if f is continuous at every point (a, b) in D.
Example 3.2. Tı́nh lim x2 y 3 x3 y 2 + 3x + 2y

(x,y)!(1,2)
Solution
Since f (x, y) = x2 y 3 x3 y 2 + 3x + 2y is a polynomial, it is continuous at all points,

so we get:
lim x2 y 3 x3 y 2 + 3x + 2y = 12 · 23 13 · 22 + 3 · 1 + 2 · 2 = 11
(x,y)!(1,2)
CHAPTER 3. DIFFERENTIATION OF FUNCTIONS OF SEVERAL VARIABLES40

x2 y 2
Example 3.3. what points are the function f (x, y) = continuous at ?
x2 + y 2
Solution
The function f is continuous at points in its domain:
D = (x, y)|(x, y) 6= (0, 0)
3.4. Derivative and di↵erential of functions of n

variables
3.4.1. first derivative and di↵erential.
Definition 3.5. If f is a function of two variables, then its partial derivatives

are functions fx and fy defined by:
f (x + h, y) f (x, y)
fx (x, y) = lim
h!0 h
f (x, y + h) f (x, y)
fy (x, y) = lim
h!0 h
Notation ofof Particular Derivatives. If z = f (x, y), we write:
@f @ @z
fx (x, y) = fx = = f (x, y) = = f1 = D1 f = Dx f
@x @x @x
@f @ @z
fy (x, y) = fy = = f (x, y) = = f2 = D2 f = Dy f
@y @y @y
Rules for finding the partial derivative of z = f (x, y).
1. To find fx , consider y a constant and the derivative f (x, y) a function with

respect to x.
2. To find fy , consider x a constant and the derivative f (x, y) a function with
respect to y.
Example 3.4. If f (x, y) = x3 + x2 y 3 2y 2 , find fx (2, 1) and fy (2, 1).
Solution
Keeping y fixed and the derivative with respect to x, we have:
fx (x, y) = 3x2 + 2xy 3

) fx (2, 1) = 3 · 22 + 2 · 2 · 13 = 16
Similarly, keeping x fixed and the derivative with respect to y, we get:
fy (x, y) = 3x2 y 2 4y
) fy (2, 1) = 3 · 22 · 12 4·1=8
✓ ◆
x @f @f
Example 3.5. If f (x, y) = sin , tı́nh and .
1+y @x @y
Solution
Using the rule of composite derivatives of functions of one variable, we have:

✓ ◆ ✓ ◆ ✓ ◆
@f x @ x x x
= cos · = cos ·
@x 1+y @x 1 + y 1+y 1+y
✓ ◆ ✓ ◆ ✓ ◆
@f x @ x x x
= cos · = cos ·
@y 1+y @y 1+y 1+y (1 + y)2
@z @z
Example 3.6. Find and when z is defined as an implicit function with
@x @y
respect to x and y by equation:
x3 + y 3 + z 3 + 6xyz = 1
@z
Find , we find the derivative of the implicit function with respect to x, be careful
@x
when considering y as a constant:
@z @z
3x2 + 3z 2 + 6yz + 6xy =0
@x @x
Solve the equation above, we get:
@z x2 + 2yz
=
@x z 2 + 2xy
Similarly, the implicit function with respect to y is:
@z y 2 + 2xz
=
@y z 2 + 2xy
Functions of three or more variables We can also calculate partial derivatives

for functions of three or more variables. For instance, if f is a function of three
variables x, y and z, then the partial derivative with respect to x is determined by:
f (x + h, y, z) f (x, y, z)
fx (x, y, z) = lim
h!0 h

f (x, y + h, z) f (x, y, z)
fy (x, y, z) = lim
h!0 h
f (x, y, z + h) f (x, y, z)
fz (x, y, z) = lim
h!0 h
and it is found by considering y and z as constants and the derivative f (x, y, z)
a function with respect to x. In general, if u is a function of n variables, u =
f (x1 , x2 , . . . , xn ), then the partial derivative with respect to the i, xi variable is:
@u f (x1 , . . . , xi 1 , xi + h, xi+1 , . . . , xn ) f (x1 , . . . , xi , . . . , xn )

= lim
@xi h!0 h
and we alse write:
@u @f
= = fxi = fi = Di f
@xi @xi
Find fx , fy và fz if f (x, y, z) = exy ln(z).
Gii
Keeping y and z fixed, derivative with respect to x, we have:
fx = yexy ln(z)
Similarly,
exy
fy = xexy ln(z) và fz =
z

3.4.2. n-order Di↵erential and derivatives
Let f be a function of two variables, then its partial derivatives fx and fy are also functions
of two variables, so we can find their partial derivatives (fx )x , (fx ))y , (fy )x and (fy )y are
called second partial derivatives of f . Let z = f (x, y), we use the following notations:
✓ ◆
@ @f @ 2f @ 2z
(fx )x = fxx = = =
@x @x @x2 @x2
✓ ◆
@ @f @ 2f @ 2z
(fx )y = fxy = = =
@y @x @y@x @y@x
✓ ◆
@ @f @ 2f @ 2z
(fy )x = fyx = = =
@x @y @x@y @x@y
✓ ◆
@ @f @ 2f @ 2z
(fy )y = fyy = = =
@y @y @y 2 @y 2
@ 2f
Hence the notation f (x, y) or means that we first derive with respect to x and then
@y@x
with respect to y, in contrast to the calculation fyx , first the derivative with respect to y
and then the derivative with respect to x
Example 3.7. Find the second order partial partial derivatives of:
f (x, y) = x3 + x2 y 3 2y 2
Solution
From the definition, we obtain:
fx (x, y) = 3x2 + 2xy 3 fy (x, y) = 3x2 y 2 4y
therefore:
@ @
fxx = 3x2 + 2xy 3 = 6x + 2y 3 fxy = 3x2 + 2xy 3 = 6xy 2
@x @y
@ @
fyx = 3x2 y 2 4y = 6xy 2 fyy = 3x2 y 2 4y = 6x2 y 4
@x @y
Theorem 3.1 (Clairaut). Suppose f is defined on a disk D containing the point (a, b).
If the functions fxy and fyx are continuous on D then:
fxy (a, b) = fyx (a, b)

3.4.3. Derivatives and di↵erentials of composite and implicit func-

tions
F Derivatives and di↵erentials of composite functions

Suppose the function z = f (x, y) is defined on the set D ⇢ R2 , where x, y are functions
of t: x = '(t), y = (t) are defined on some interval (a, b) and for t 2 (a, b) then
(x, y) printD. Then we have the composite function z = f (x, y) = f '(t), (t) which is
a function of one variable defined on (a, b). Suppose f (x, y) is di↵erentiable on D and the
functions '(t), (t) are di↵erentiable on (a, b). Then the composite function f '(t), (t)
is di↵erentiable on (a, b) and we have:
@f 0 @f 0
z 0 (t) = x (t) + y (t)
@x @y
Suppose z = f (x, y) is a di↵erentiable function on D ⇢ R2 , x = '(t, s), y = (t, s) are
di↵erentiable functions for the variable t, s in G ⇢ R2 and have the set of values D1 ⇢ D.
Then the composite function z = f '(t, s), (t, s) is a function of two variables t, s
defined on G. The partial derivative of the function z = f '(t, s), (t, s) is calculated
by the formula:
@f @f @x @f @y
= · + ·
@t @x @t @y @t
@f @f @x @f @y
= · + ·
@s @x @s @y @s
In General: If the function n f (x1 , x2 , . . . , xn ) is di↵erentiable on D ⇢ Rn , where:
x1 = x1 (t1 , t2 , . . . , tn ) , x2 = x2 (t1 , t2 , . . . , tn ) , . . . , xn = xn (t1 , t2 , . . . , tn )
are also di↵erentiable the functions on G ⇢ Rm and have the domain D1 ⇢ D, then we
have the composite function:
u = f x1 (t1 , t2 , . . . , tn ) , x2 (t1 , t2 , . . . , tn ) , . . . , xn (t1 , t2 , . . . , tn )
is defined on G. Then the partial derivative of the variable ti (i = 1, 2, . . . , n) is calculated

by the formula:
@f @f @x1 @f @x2 @f @xn
= · + · + ... + ·
@ti @x1 @ti @x2 @ti @xn @ti
Example 3.8. Given the function z = f (x, y) = ex sin(x + y):
a. Find z 0 (t) if x = t2 , y = t3 .
We have:
@z p x
⇣
⇡ @z
⌘
= 2e sin x + y + ; = ex cos(x + y)
@x 4 @y
Using the formula we can calculate:
p 2
⇣ ⇡
⌘ 3
z 0 (t) = 2 2tet sin t2 + t3 + + 3t2 et cos t2 + t3
4

@z @z
b. Find , nu x = ts, y = t + s.
@t @s
@z p is
⇣ ⇡
⌘
= 2se sin ts + t + s + + eis cos(t + s + ts)
@t 4
@z p t
⇣ ⇡
⌘
= 2te sin ts + t + s + + ets cos(ts + t + s)
@s 4

3.5. Some application of di↵erential calculus of func-

tions of n variables.
3.5.1. Cc tr không có diu kin ràng buc
Definition 3.6. Given the function f (x1 , x2 , . . . , xn ) defined and continuous on the set
D ⇢ Rn satisfying:
n o
D= X (x1 , x2 , . . . , xn ) 2 R : ai < xi < bi ; ai , bi 2 R, i = 1, 2, . . . , n
n
We say the function f (x1 , x2 , . . . , xn ) reaches a local maximum (local minimum) at the
point X = x1 , x2 , . . . , xn 2 D if there exists a neighborhood S X, r ⇢ D (r > 0 is
sufficient small enough) such that:
⇣ ⌘
f x 1 , x2 , . . . , x n  f x 1 , x 2 , . . . , x n f (x1 , x2 , . . . , xn ) f (x1 , x2 , . . . , xn )
For allall X (x1 , x2 , . . . , xn ) 2 S(X, r) và X 6= X.

The point X x1 , x2 , . . . , xn where the function f (x1 , x2 , . . . , xn ) reaches local maxi-
mum value (local minimum value ) called its maximum (minimum). The maximum and
minimum points are generally called extreme points.
F Necessary condition for a function to have extreme points
Theorem 3.2. If the function f (x1 , x2 , . . . , xn ) is defined, continuous and has partial
derivatives with respect to all the independent variables in D and reaches extreme value (
maximum or minimum) at the point X (x1 , x2 , . . . , xn ) 2 D then
Theorem 3.3.
@f
(x1 , x2 , . . . , xn ) = 0, i = 1, 2, . . . , n (3.1)
@xi
It is a necessary condition for a function having extreme points. The point X (x1 , x2 , . . . , xn )
satisfying the condition (3.1) is called the stationary point of the function f (x1 , x2 , . . . , xn ).
From the above theorem we see that the function f (x1 , x2 , . . . , xn ) can only reach its
maximum at stops. However, this is only a necessary condition, not a sufficient condition.
The following sufficient condition will help us to check whether at the stationary point the
function reaches its extreme value or not.
F Sufficient condition for a function to have extreme points

Suppose X (x1 , x2 , . . . , xn ) is the stationary point of the function f (x1 , x2 , . . . , xn ) and

at that point the function has all second order partial derivatives continuous. We set:
@ 2f
aij = (x1 , x2 , . . . , xn ) (i, j = 1, 2, . . . , n)
@xi @xj
Then the Hess matrix of the function f (x1 , x2 , . . . , xn ) at X (x1 , x2 , . . . , xn ) is a symmetric

matrix, i.e. aij = aji (i, j = 1, 2, . . . , n).
2 3
a11 a12 . . . a1n
6 a 7
6 21 a22 . . . a2n 7
H=6 7
4 ... ... ... ... 5
an1 an2 . . . ann
The matrix H has n principal sub-determinants:
a11 a12 . . . a1k a11 a12 . . . a1n

a11 a12 a21 a22 . . . a2k a21 a22 . . . a2n
D1 = a11 ; D2 = ; . . . ; Dk = ; . . . ; Dn =
a21 a22 ... ... ... ... ... ... ... ...
ak1 ak2 . . . akk an1 an2 . . . ann
Theorem 3.4. From the above determinants, we have the following:
+ If D1 > 0, D2 > 0, . . . , Dn > 0 then X (x1 , x2 , . . . , xn right) is the minimum point of

the function f (x1 , x2 , . . . , xn ).
+ If D1 < 0, D2 > 0, . . . , ( 1)n Dn > 0 then X (x1 , x2 , . . . , xn ) is the maximum point of
the function f (x1 , x2 , . . . , xn ).
+ If Di 6= 0(i = 1, 2, . . . , n), but neither of the above conditions is satisfied, then
X (x1 , x2 , . . . , xn ) are not extreme points.
+ If D1 0, D2 0, . . . , Dn 0 and there exists i 2 {1, 2, . . . , n} such that Di = 0
or D1  0, D2 0, . . . , ( 1)n Dn 0 and there exists i 2 {1, 2, . . . , n} such that
Di = 0 it is not sufficient to have a conclusion about the local extrema of the function
f (x1 , x2 , . . . , xn ) at X (x1 , x2 , . . . , xn ) . So, we must use another method.
Corollary 3.1. Suppose the function f (x, y) has continuous second partial derivatives at
the point M0 (x0 , y0 ) and the point M0 (x0 , y0 ) is stationary point of the function f (x, y).
We set:
@ 2f @ 2f @ 2f A B
A= (x ,
0 0y ) , B = (x ,
0 0y ) , C = A = (x0 , y0 ) , = = AC B 2
@x2 @x@y @y 2 B C
Then:
8
<A > 0
+ If then M0 (x0 , y0 ) is the minimum point of f (x, y).
: >0

8
<A < 0
+ If then M0 (x0 , y0 ) is the maximum point of the function f (x, y).
: >0
+ If < 0 then M0 (x0 , y0 ) is not a extreme point of the function f (x, y).
+ If = 0, we can not give any conclusion.
Example 3.9. Find the extreme points of the function f (x, y) = x3 + y 3 3xy
Solution
We calculate the first and second derivatives of f (x, y):
@f @f
= 3x2 3y, = 3y 2 3x
@x @y
@ 2f @ 2f @ 2f
= 6x, = 3, = 6y
@x2 @x@y @y 2
The stationary point of the function f (x, y) is the solution of the system of equations
8
> @f ( ( (
< =0 3x2 3y = 0 x=0 x=1
@x , , _
> @f 3y 2 3x = 0 y=0 y=1
: =0
@y
We get two stationary points M1 (0, 0) and M2 = (1, 1)
• At M1 (0, 0): We have A = 0, B = 3, C = 0 ) = AC B2 = 9 < 0. So the

function f (x, y) does not have a maximum value at M1 (0, 0).
• At M2 (1, 1): We have A = 6, B = 3, C = 6 ) = AC B 2 = 27 > 0. So the
function f (x, y) has its minimum value at M2 (1, 1) and fCT = f (1, 1) = 1.

3.5.2. Constrained extreme value of a function under one or more

conditions
F Conditional extreme value constrained by two selected variables and a

equation
In 3.5.1 we considered the problem of finding the extreme values of the function z =
f (x, y) in which the variables x, y have no constrained conditions. We call they are the
free extreme values or the unconditional extreme values. In this section, we will consider
the problem of finding the extreme values of a function of two variables z = f (x, y) where
x, y are constrained by each other by a condition.
a) Definition: Given the functions z = f (x, y), '(x, y) are defined and continuous on
the set:
n o
D= M (x, y) 2 R : a < x < b.c < y < d; a, b, c, d 2 R
2
⇢ R2
We say the function z = f (x, y) reaches a local maximum (local minimum) at the point
M0 (x0 , y0 ) with the condition '(x, y) = 0 if there exists a neighborhood S (M0 , r) ⇢
D (r > 0 is small enough) such that f (x, y)  f (x0 , y0 ) f (x, y) f (x0 , y0 ) for
every point M (x, y) 2 S (M0 , r right), M 6= M0 and '(M ) = '(x, y) = 0.
From the equation '(x, y) = 0, we have a curve (C). So we only compare f (x0 , y0 )
with f (x, y) when the point M (x, y) lies on (C) only .
b) Necessary condition for extreme value:
Suppose M0 (x0 , y0 ) is the extreme point of the function z = f (x, y) with the condition
'(x, y) = 0 where f (x, y), '(x, y) are functions which have continuous partial deriva-
@'
tives in a neighborhood of the point M0 (x0 , y0 ) and (x0 , y0 ) 6= 0. Then there exists
@y
2 R such that:
8
> @f @'
>
> (x0 , y0 ) + (x0 , y0 ) = 0
>
< @x @x
@f @' (3.2)
> (x 0 , y 0 ) + (x0 , y0 ) = 0
>
> @y @y
>
:
' (x0 , y0 ) = 0
S dc gi là nhân t Lagrange. Hàm L(x, y) = f (x, y) + g(x, y) dc gi là hàm s
Lagrange.
Nh vy, h phng trı̀nh (3.2) có th dc vit li di dng:
8
> @L
>
> (x0 , y0 ) = 0
>
> @x
<
@L
(x0 , y0 ) = 0 (3.3)
>
> @y
>
>
>
: @L
(x0 , y0 ) = 0
@

c) Sufficient conditions for extreme values

Suppose (x0 , y0 , ) is the stationary points of the Lagrange’s function L(x, y),i.e. a
solution of the system of equations (3.4) assuming that the functions f (x, y), '(x, y)
has a continuous second partial derivative at the point M0 (x0 , y0 ). Then, the function
L(x, y) also has continuous second-order partial derivatives at the point M0 (x0 , y0 ).
We consider the determinant:
0 '1 '2
D= '1 L11 L12
'2 L21 L22
Where:
@' @'
'1 = (x0 , y0 ) , '2 = (x0 , y0 )
@x @y
@ 2L @ 2L
L11 = (x ,
0 0 y ) , L12 = (x0 , y0 )
@x2 @x@y
@ 2L @ 2L
L21 = (x0 , y0 ) , L22 = (x0 , y0 )
@y@x @y 2
Theorem 3.5. If D > 0, the point M0 (x0 , y0 ) is the conditional maximum of the
function f (x, y). If D < 0 then the point M0 (x0 , y0 ) is the conditional minimum of
the function f (x, y). If D = 0, there is no conclusion in this situation.
F Conditional extreme values that are constrained by n selected variables

and a constraint equation
a) Definition 1: Given the function f (x1 , x2 , . . . , xn ), '(x1 , x2 , . . . , xn ) definite and

continuous on the set:
n o
D= X (x1 , x2 , . . . , xn ) 2 R : ai < xi < bi ; ai , bi 2 R, i = 1, 2, . . . , n
n
⇢ Rn
Ta nói hàm s f (x1 , x2 , . . . , xn ) dt cc di da phng (cc tiu da phng) ti dim X (x1 , x2 , . . . , xn ) 2

D vi diu kin ' (x1 , x2 , . . . , xn ) = 0 nu tn ti mt lân cn S(X̄, r) ⇢ D (r > 0 d nh) sao
cho:
f (x1 , x2 , . . . , xn )  f (x1 , x2 , . . . , xn ) f (x1 , x2 , . . . , xn ) f (x1 , x2 , . . . , xn )
vi mi dim X (x1 , x2 , . . . , xn ) 2 S(X, r), X 6= X và '(X) = ' (x1 , x2 , . . . , xn ) = 0.
b) Necessary conditions for extreme values
Theorem 3.6. Suppose that X (x1 , x2 , . . . , xn ) is the extreme point of the function
f (x1 , x2 , . . . , xn ) with the condition that ' (x1 , x2 , . . . , xn ) = 0 where f (x1 , x2 , . . . , xn ) , ' (x1 , x2 , . . .
functions such that their partial derivatives are continuous in a neighborhood of the

point X (x1 , x2 , . . . , xn ) vand at X there is at least one of the partial derivatives of

' (x1 , x2 , . . . , xn ) is not equal to 0. Then there exists 2 R such that:
8
> @f @'
>
< (x1 , x2 , . . . , xn ) (x1 , x2 , . . . , xn ) = 0
@xi @xi
(i = 1, 2, . . . , n) (3.4)
>
>
:
' (x1 , x2 , . . . , xn ) = 0
The number is called the Lagrange multiplier. The function:
L (x1 , x2 , . . . , xn , ) = f (x1 , x2 , . . . , xn ) ' (x1 , x2 , . . . , xn ) (3.5)
This is called the Lagrange’s function. Thus, the system of equations (3.4) can be
rewritten:
8
> @L
< (x1 , x2 , . . . , xn ) = 0; i = 1, 2, . . . , n
@xi (3.6)
>
: @L (x1 , x2 , . . . , xn ) = 0
@
c) Sufficient conditions for extreme values
Suppose (x1 , x2 , . . . , xn , ) is the stationary point of the function L (x1 , x2 , . . . , xn , ),
i.e. a solution of the system of equations (3.6). Assuming the functions f (x1 , x2 , . . . , xn ) , ' (x1 , x2 , .
has continuous second-order partial derivatives at the point X (x1 , x2 , . . . , xn ). Then
second-order partial derivatives of the function L (x1 , x2 , . . . , xn , ) exists and it is
also continuous at the point X (x1 , x2 , . . . , xn ). We set up the matrices:
2 3
0 '1 '2 ··· 'n
6 7
6 '1 L11 L12 · · · L1n 7
6 7
H=6 '
6 2 L 21 L 22 · · · L 2n 7
7
6 7
4· · · · · · · · · · · · · · · 5
'n Ln1 Ln2 · · · Lnn
Where
@'
'k = x1 , x2 , . . . , xn ; k = 1, 2, . . . , n
@xk
@ 2L
Lij = x1 , x2 , . . . , xn , ; i, j = 1, 2, . . . , n
@xi @xj
We consider these determiners:
0 '1 '2 ··· 'n

'1 L11 L12 · · · L1n
Dk = '2 L21 L22 · · · L2n (k = 2, 3, . . . , n)
··· ··· ··· ··· ···
'n Ln1 Ln2 · · · Lnn

Theorem 3.7. If D2 > 0, D3 < 0, . . . , ( 1)n Dn > 0 then X (x1 , x2 , . . . , xn ) is the

conditional maximum of the function f (x1 , x2 , . . . , xn ). If D2 < 0, D3 < 0, . . . , Dn <
0 then X̄ (x1 , x2 , . . . , xn ) is the conditional minimum of the function f (x1 , x2 , . . . , xn ).

3.5.3. Minimum and maximum values of a function on a closed

and bounded set
Let D be a closed set, bounded in Rn with boundary @D given by the equation '(x1 , x2 , . . . , xn )
that is a continuous function on D. The following is the rule to find the maximum and
minimum value of f (x1 , x2 , . . . , xn ) on D.
+ Find suspicious points that are likely to be extreme value of f (x1 , x2 , . . . , xn ) with the
condition '(x1 , x2 , . . . , xn ) = 0.
+ Find the stationary points of f (x1 , x2 , . . . , xn ) in D.
+ The maximum (minimum) value of f (x1 , x2 , . . . , xn ) on D is the largest (smallest)
values of the function at the points we had found above.
Example 3.10. Find the maximum and minimum value of the function f (x, y) = x2 +
2y 2 x on the domain D : x2 + y 2  1.
Solution
8
>
<x = 1
@f @f 2
We have = 2x 1; = y. Hence f (x, y) has only one stationary point is ,
@x @y >
: y=0
which belongs to D. Set L(x, y) = x2 + 2y 2 x + (x2 + y 2 1). Solve the system of
equations:
8
> @L
>
> = 2x 1+2 x=0
>
> @x
<
@L
= 4y + 2 y = 0
>
> @y
>
>
>
: @L = x2 + y 2 1 = 0
@
✓ p ✓ p ◆
1 3 1 3
We have the possible points that are ( 1, 0), (1, 0), , bigg), , .
2 2 2 2
Finding the values of f (x, y) at these points we have:
✓ ◆ ✓ p ◆
1 1 1 3 9
min f = f ,0 = ; max f = f ,± =
D 2 4 D 2 2 4

Chapter 4
APPLICATIONS FUNCTIONS OF
MULTIPLE VARIABLES IN
ECONOMY
4.1. Partial derivative and marginal value
Meaning of partial derivatives in economics: Consider the economic function model w =

f (x1 , x2 , . . . , xn ) where w, x1 , x2 , . . . , xn are economic variables. The partial derivative of
w with respect to the variable xi at the point M0 x01 , x02 , . . . , x0n is called the marginal
@w
value w - in xi at that point, i.e. (M0 ) represents the change in the value of the
@xi
variable w when the value of xi changes by one unit in the condition that the value of the
remaining independent variables stay constant.
F Production function Q = f (K, L)

@f @f
Partial derivatives QK = (K, L); QL = (K, L) is called the marginal production
@K @L
function of the capital (MPK) and the marginal production function of labor (MPL) at
point (K, L).
@f
Interpretation: QK = (K, L) shows the approximate amount of products that in-
@K
creases with the use of one more unit of the capital and the same level of labour. Similarly,
@f
QL = (K, L) shows the approximate amount of products when one more unit of labor
@L
is used and at the same level of the capital usage.
1 3
Example 4.1. Assume that the production function of a firm is Q = 20K 4 L 4 where
K, L, Q are capital usage, labor usage, and daily quantity of products respectively. Assume
that the firm is using 16 units of output and 81 units of labor in one day i.e K = 16;
55
L = 81. Determine the marginal product of capital and labor at that point and explain
the meaning of them?
Solution
The marginal product of capital and labor are respectively:

@f 3 3 @f 1 1
QK = (K, L) = 5K 4 L 4 ; QL = (K, L) = 15K 4 L 4
@K @L
The marginal product of capital and labor at K = 16; L = 81 are respectively:
@f 3 3 135
QK (16, 81) = (16, 81) = 5(16) 4 (81) 4 = ⇡ 1, 69
@K 8
@f 1 1
QL (16, 81) = (16, 81) = 15(16) 4 (81) 4 = 10
@L
That is, if the firm increases its use of capital K from 16 to 17 units and keeps labor L = 81
per day, output increases by approximately 1.69 units. Similarly, if the firm increases its
use of labor L from 81 to 82 units and keeps labor at K = 16 per day, output will increase
by approximately 10 units.
F Utility function U = U(x1 , x2 , . . . , xn )
The partial derivative of the utility function with respect to independent variables is
@U
M Ui = (i = 1, n). M Ui is called the marginal utility function of the ith good.
@xi
Interpretation: The partial derivative M Ui at the point M0 x01 , x02 , . . . , x0n represents
an approximation of the additional utility when the consumer has one more unit of the i
th good in the condition that the number of units of other goods remains unchanged.
Do hàm riêng M Ui ti dim M0 x01 , x02 , . . . , x0n biu din xp x li ı́ch tăng thêm khi ngi tiêu
dùng có thêm mt dn v hàng hoá th i trong diu kin s dn v các hàng hoá khác không thay
di.
Example 4.2. Suppose a consumer’s daily consumption function for two goods is U =
3 1
2x12 x12 .Where x1 , x2 are the units of good 1 and good 2, U is the daily utility. Assume that
a consumer is consuming 64 units of good 1 and 25 units of good 2 in a day. Determine
the marginal utility of the goods at that point and explain the meaning of it?
Solution
The marginal utility of good 1 and 2 is respectively :

1 1 3 1
M U1 = 3x12 x22 ; M U2 = x12 x2 2
The marginal utility of good 1 and 2 at x1 = 64; x2 = 25 is respectively:
M U1 (64, 25) = 60; M U2 (64, 25) = 102, 4
CHAPTER 4. APPLICATIONS FUNCTIONS OF MULTIPLE VARIABLES IN 56

ECONOMY
That is, if a consumer increases his use of good 1 by one unit from 64 to 65 and keeps
his consumption of good 2 the same per day, the utility increases by 60 units. Similarly,
if the use of good 1 is kept the same and the usage of good 2 is increased by one unit from
25 to 26 per day, the utility increases by about 102.4 units.

ECONOMY
4.2. Partial elasticity

Let the economic function w = f (x1 , x2 , . . . , xn ). The elasticity of the function w with
respect to the variable xi at the point M0 x01 , x02 , . . . , x0n is a measure of the percentage
change in w when xi changes by 1% under the condition that the values of other indepen-
dent variables remain constant, denoted and defined as follows:
@f x01 , x02 , . . . , x0n x0i

"fxi = ·
@xi f x01 , x02 , . . . , x0n
Example 4.3. Suppose the demand function for good 1 in the market for two related
goods has the form:
5 2
Q1d = 6300 2p21 p
3 2
Where p1 , p2 is the price of goods 1,2, respectively. Determine the price elasticity of
demand p1 for the price of that good at (p1 , p2 ) and determine the price elasticity of
demand p1 for the price of the second good p2 at (p1 , p2 ) and explain the meaning of this
at the point (p1 , p2 ) = (20, 30).
Solution
The price elasticity of demand p1 for the price of that good at (p1 , p2 ):
p1
"Q
p1 =
1d
4p1 ·
5 2
6300 2p21 p
3 2
Price elasticity of demand p1 for the price of the second good p2 at (p1 , p2 ):
10 p2
"Q
p2 =
1d
p2 ·
3 5 2
6300 2p21 p
3 2
At the point (p1 , p2 ) = (20, 30), we have "Q 1d

p1 = 0.4; "Q 1d
p2 = 0.75. That is to say, when
good 1 is at 20 and good 2 is at 30 if the price of good 1 is increased by 1% and the price
of good 2 remains the same, the demand for good 1 will decrease by 0, 4% . Similarly, if
the price of good 1 remains the same but the price of good 2 increases by 1%, the demand
for good 1 also decreased by 0.75%.

ECONOMY
4.3. law of diminishing marginal utility

Consider the economic function of two variables z = f (x, y):
@z @f
+ = (x, y) is the marginal function of the above economic function with respect
@x @x
to variable x.
@z @f
+ = (x, y) is the marginal function of the above economic function on the variable
@y @y
y.
In economics, the law of diminishing marginal utility says: the value of z – the marginal
value of the variable x decreases as x increases and y remains constant. Similarly, the
value of z – the marginal value of the variable y decreases gradually as y increases and
x remains constant (note: we consider in terms of the value of the variables x, y large
enough). The mathematical basis is:
@z @f @ 2z @ 2f
+ = (x, y) is a decreasing function when = (x, y) < 0.
@x @x @x2 @x2
@z @f @ 2z @ 2f
+ = (x, y) is a decreasing function when = (x, y) < 0.
@y @y @y 2 @y 2
Example 4.4. The production function of a firm of the Cobb-Douglas’ form is as follows:
Q = aK ↵ L (↵, > 0)
Find the condition of ↵, > 0 so that the above function obeys the law of diminishing
marginal utility.
Solution
@Q
Marginal product function of capital: = a↵K ↵ 1L .
@K
@Q
The marginal product function of labor: = a K ↵L 1.
@L
Manifestations of the law of diminishing marginal utility are:
8
> @ 2Q 8
>
< = a↵(↵ 1)K ↵ 2L <0 <↵ < 1
@K 2
)
> 2 : <1
:@ Q =a (
> 1)K ↵ L 2 <0
@L2
8
<0 < ↵ < 1
So the conditions are .
:0 < <1
1 3
Apply to specific problem with production function Q = 20K 4 L 4 where K, Q, L is the
level capital use, labor use, and daily output. This function satisfies the law of diminishing
marginal utility.

ECONOMY
4.4. Homogeneous functions and the efficiency scale of

production problem
a) Homogeneous function
The function z = f (x, y) is said to be a homogeneous function of level k (k > 0) if
for all t > 0 we have:
f (tx, ty) = tk f (x, y)
Example 4.5. Q = aK ↵ L is a homogeneous function of degree (↵ + ) since for

any t > 0 we have:
Q(tK, tL) = a(tK)↵ (tL) = t↵+ aK ↵ L = t↵+ Q(K, L)
Example 4.6. The function Q = 2K 2 5KL + L2 is a homogeneous function of

degree 2.
2x2 y
Example 4.7. The function z = is a level 0.
x3 + y 3
b) Properties
1) Assume that w = f (x1 , x2 , . . . , xn ) are continuous partial derivatives. Then:
@f @f @f
f is a homogeneous function of degree k , x1 + x2 + . . . + xn =k·f
@x1 @x2 @xn
2) If f is a homogeneous function of order k, g is a homogeneous function of degree

m then f ·g is a homogeneous function of degree k+m, f n is homogeneity function
f
kn and is homogeneous function of degree k m (if k m).
g
c) the efficiency scale of production problem
Consider the production function Q = f (K, L) where K, L is the input, Q is the
output. The problem is: If the inputs K, L increase by m, will the output Q increase
by m?
+ If Q(mK, mL) > mQ(K, L) then we say the efficient production function increases
with scale.
+ If Q(mK, mL) < mQ(K, L) then we say the efficient production function de-
creases with scale.
+ If Q(mK, mL) = mQ(K, L) then we say the production function is efficient at
constant scale.
d) Relate the efficiency of scale to the degree of homogeneity
Assume the production function Q = f (K, L) is a homogeneous function of level k:

ECONOMY
+ If k > 1, the efficient production function increases with scale.

+ If k < 1 then the efficient production function decreases with scale.
+ If k = 1 then the efficient production function is constant to scale.
1 4 4
Example 4.8. The production function Q = K + K 0,5 L0.5 + L is a homogeneous
9 9 9
function is at least of degree 1, so it has constant efficiency to scale.
Example 4.9. The production function Q = aK ↵ L is a homogeneous function of
degree (↵ + ) so:
+ If ↵ + > 1 then we say the efficient production function increases with scale.
+ If ↵ + < 1 then we say the efficient production function decreases with scale.
+ If ↵ + = 1 then we say the production function is efficient at scale.

ECONOMY
4.5. Indi↵erence and isoquant curve

Given the production function Q = aK ↵ L (a, ↵, > 0). Suppose K = K0 ; L = L0 ;
output then is Q0 = aK0↵ L0 . Equation:
Q = Q0 , aK ↵ L = Q0
is called the equation for the isoquant at the point (K0 , L0 ).

Given the utility function U = ax↵ y (a, ↵, > 0). Suppose x = x0 , y = y0 ; the benefit
then is U0 = ax↵0 y0 . Equation:
U = U0 , ax↵ y = U0
is called the equation of the indi↵erence curve at the point (x0 , y0 ). The slope (or slope)
of that line at the point (x0 , y0 ) is equal to:
@U
dy (x0 , y0 )
(x0 , y0 ) = @x
dx @U
(x0 , y0 )
@y
Example 4.10. A household has the following consumption utility function for two goods:
U (x, y) = 5x0.4 y 0,4
Where x is the number of units of goods 1, y is the number of units of goods 2 (x, y > 0)
. At the point (x0 , y0 ) = (32, 32) write the equation of the indi↵erence curve, determine
the slope of that line and explain the meaning of it.
SOlution
We have (x0 , y0 ) = (32, 32), so that
U0 = 5 · 320.4 · 320.4 = 80
The equation of the indi↵erence curve at the point (x0 , y0 ) is:
U = U0 , x0.4 y 0.4 16 = 0
The slope of the indi↵erence curve is:

@U
dy @x = y
yx0 = =
dx @U x
@y
32
At the point (x0 , y0 ) = (32, 32), yx0 = = 1
32
Meaning: at (x0 , y0 ) = (32, 32) when the number of units of the good 2 is increased by
1, the consumption benefit remains the same.

ECONOMY
4.6. Economic applications of implicit function

a) Definition
Suppose we have the equation F (x, y) = 0 where F (x, y) is a function of two variables
defined on the set D ⇢ R2 . If for every x 2 (a, b) there exists a unique value of y
satisfying the equation F (x, y) = 0 then the equation F (x, y) = 0 defines a function
y = y(x), x 2 (a, b).
The function y = y(x) is called an implicit function defined implicitly by the equation
F (x, y) = 0. We say that the equation F (x, y) = 0 implies the implicit function
y = y(x) in the interval (a, b) if and only if:
F x, y(x) = 0, 8x 2 (a, b)
If the equation F (x, y) = 0 can be solved to represent y with respect to x by an

expression, then the implicit function F (x, y) = 0 becomes the ”explicit” function.
Example 4.11. F (x, y) = x + y 3 1 = 0.
p
For x 2 R, the above equation determines the unique value y = 3
1 x satisfying:
F x, y(x) = x + (1 x) 1 = 0, 8x 2 R
p
So, we say the equation x + y 3 1 = 0 defines the function 3
1 x as a implicit
function in R. In this example, the implicit function can be represented as the
p
explicit function y = 3 1 x.
Example 4.12. Given the equation F (x, y) = x2 + y 2 1 = 0.
p
For each x 2 [ 1, 1], there are two values y = ± 1 x2 making F (x, y) = 0 so
this equation doesn’t define any implicit function. In many cases, although we can
show that the equation F (x, y) = 0 defines a function y = y(x), we can not express
y with respect to x directly. In these cases, we must consider the function y = y(x)
indirectly as the equation F (x, y). The notation y = y(x) only has a formal meaning
to say that y is a function of the variable x.
b) The implicit function theorem Suppose the function F (x, y) is defined, continu-
ous and has continuous partial derivatives in a neighborhood of the point M0 (x0 , y0 )
and at M0 (x0 , y0 ), it satisfies the following conditions:
@F
F (x0 , y0 ) = 0; (x0 , y0 ) 6= 0
@y
Then:
+ There exists > 0 such that the equation F (x, y) = 0 defines a function:
y = y(x), 8x 2 (x0 , x0 + )

ECONOMY
+ y(x0 ) = y0
+ The function y = y(x) has a continuous derivative on the interval (x0 , x0 + ).
c) Derivatives of implicit function
The above theorem states the existence of the implicit function defined by the equation
F (x, y) = 0 and the derivatives of the implicit function (when the conditions of the
theorem are satisfied). Thus, to calculate the derivatives of an implicit function (when
the derivatives exist), we just need to apply the rule for calculating the derivative of
the composite functions F x, y(x) = 0.
Assume the function y = y(x) is an implicit function defined by the equation F (x, y) =
0 then:
F x, y(x) = 0, 8x 2 (x0 , x0 + )
From the formula for derivatives of composite functions, we have:
@F @F
(x, y) + (x, y)y 0 (x) = 0
@x @y
@F
@F (x, y)
Since (x, y) 6= 0 then y 0 (x) = @x
@y @F
(x, y)
@y
Example 4.13. Consider the implicit function from the equation 2x2 + y 2 1 = 0.
We have F (x, y) = 2x2 + y 2 1 = 0. Therefore:
@F
(x, y) 4x 2x
y 0 (x) = @x = =
@F 2y y
(x, y)
@y

ECONOMY
4.7. Growth rate

Given the economic function w = f (x1 , x2 , . . . , xn , t) where t is the variable of time. The
growth rate of f , denoted by f, is determined by the formula:
@f
f = @t
f
Normally f is scaled by %.
F Properties
1) Cho U = U (t), V = V (t):

• If Y = U V then Y = U + V
U
• If Y = then Y = U V
V
U V
• If Y = U + V then Y = U + V
U +V U +V
U V
• If Y = U V then Y = U + V
U V U V
2) Given the function w = f (x1 , x2 , . . . , xn ) where x1 = x1 (t), x2 = x2 (t), . . ., xn =
xn (t) . Then the growth rate of f is calculated by the partial elasticity of f with
n
X
respect to xi "fxi and the growth rate of xi xi , like this: f = "fxi xi .
i=1
1 3
Example 4.14. Let the production function Q = 20K 4 L 4 where K is capital, L is labor,
1 1
Q is output. Let capital and labor depend on t (month): K = 1 + t, L = 3 + t
4 6
a. Determines the growth rate of capital and labor.
b. Determines the growth rate of output at t0 = 2.
Solution
a. the Growth rate of capital is:
1
K0 4 1
K = = =
K 1 8+t
2+ t
4
the Growth rate of labour is:
1
L0 6 1
L = = =
L 1 18 + t
3+ t
6

ECONOMY
b. the Growth rate of output is:

1 1 3 1
Q = "Q
K K + "Q
L L = · + ·
4 8 + t 4 18 + t
At t0 = 2 we have:
1 1 3 1 1
Q = · + · =
4 8 + 2 4 18 + 2 16

ECONOMY
4.8. Unconditional and conditional extreme values of

economic function of multi-variables
a) applications of unconditional extreme values
Example 4.15. An firm produces exclusively two types of products. The demand
functions for the firm’s two products (per unit of time) are:
1230 5P1 + P2 1350 + P1 3P2

Q1 = , Q2 =
14 14
and the total cost function (per unit of time) is C(Q1 , Q2 ) = Q21 + Q1 Q2 + Q22 . Find
the level of output that maximizes the profit of the firm.
Gii
Assume that Q1 , Q2 is the outputs of the first and second products of the firm. To
sell all that amount of products, the factory must sell at the price P1 , P2 such that:
8 8
< 5P P2 = 1230 14Q1 < P = 360 3Q1 Q2
1 1
,
: P1 3P2 = 14Q2 1350 : P2 = 570 Q1 5Q2
The revenue is :
R = P1 Q1 + P2 Q2 = 360 3Q1 Q2 Q1 + 570 Q1 5Q2 Q2

= 3Q21 5Q22 2Q1 Q2 + 360Q1 + 570Q2
The profit is:
⇡=R C= 3Q21 5Q22 2Q1 Q2 + 360Q1 + 570Q2 Q21 + Q1 Q2 + Q22 = 4Q21 6Q22
The stationary point is the solution of the system of equations:

8
> @⇡ ( (
< =0 8Q1 3Q2 + 360 = 0 Q1 = 30
@Q1 , ,
> @⇡ 3Q1 12Q2 + 570 = 0 Q2 = 40
: =0
@Q2
Hence the stationary point is M (30, 40). We have:
@ 2⇡ @ 2⇡ @ 2⇡
= 8, = 3, = 12 ) A = 8, B = 3, C = 12
@Q21 @Q1 @Q2 @Q22
(
= AC B 2 = ( 8)( 12) ( 3)2 = 87 > 0
A= 8<0
So the profit is maximized at (Q1 , Q2 ) = (30, 40).

ECONOMY
Example 4.16. Let profit function of a firm for a product be:
⇡=R C = PQ wL rK
Where ⇡ is profit, R is interest rate, C is cost, L is labor, w is salary of one worker, K

is capital, r is the interest rate of the capital, P is the unit selling price of the product.
1 1
Assume that a Cobb – Douglas’s production function is of the form Q = L 3 K 3 . We
find L, K to maximize profit for the case w = 1; r = 0.02; P = 3. Then we have a
function of two variables which their partial derivatives are:
1 1
⇡ = 3L 3 K 3 L 0, 02K
@⇡ 2 1 @⇡ 1 2
= L 3 K 3 1; = L3 K 3 0, 02
@L @K
@ 2⇡ 2 5 1 @ 2⇡ 1 2 2 @ 2⇡ 2 1 5
= L 3K3; = L 3 K 3 ; = L3 K 3
@L2 3 @K@L 3 @K 2 3
Find the stationary points by solving the system of equations ⇡L0 = 0, ⇡K

0 = 0, we
get L = 50, K = 2500. Consider second order partial derivatives at the stationary
points (L0 , K0 ) = (50, 2500).
1 1 1 A B 1
A= < 0, B = , C= , = >0
75 7500 187500 B C 18750000
So profit is maximized when L = 50, K = 2500 with ⇡max = 50.
b) Applications of Conditional extreme value
Example 4.17. Given a consumer utility function for two goods U (x, y) = x0,4 y 0.6
where x is the unit of good 1, y is a unit of good 2 (x, y > 0). Assume that the prices
of the goods are 2and3, respectively, and the consumer’s income is 130. Determine
the quantity demanded of each good so that the consumer gets the maximum benefit.
• Step 1: Find the maximum of the function U with the condition 2x + 3y = 130.
• Step 2: Write the Lagrange’s Function L(x, y, ) = x0,4 y 0.6 + (2x + 3y 130)
• Step 3: Solve the system of equations:
8 8 8
> @L
>
> =0 >
> x 0,6 y 0,6 =5 >
> x = 40
>
> @x >
> >
>
< < <
@L 10 y = 60
=0 , x0,4 y 0,4 = ,
>
> @y >
> 3 >
> ⇣ 3 ⌘0,6
>
> >
> >
> 1
>
: @L : 2x + 3y = 130 : =
=0 5 2
@
✓ ⇣ 3 ⌘0,6 ◆
1
It leads that the stationary point is M = 40, 60,
5 2

ECONOMY
• Check the sufficient conditions:
@' @'
'1 = = 2; '2 = =3
@x @y
@ 2L 1,6 0,6 1,6

= 0, 24x y ) L11 = 0, 24 · 40 · 600,6 < 0
@x2
@ 2L
= 0, 24x0,4 y 1,4
) L22 = 0, 24 · 400,4 · 60 1,4
<0
@y 2
@ 2L @ 2L 0,6 0,4 0,6 0,4

= = 0, 24x y ) L12 = L21 = 0, 24 · 40 · 60 <0
@x@y @y@x
Consider the determinant:
0 2 3
0 2
D1 = 3 L11 L12 > 0; D2 = = 4<0
2 L11
3 L21 L22
So M is the maximum point of the function.

• Step 5: In conclusion: Consumers need to buy in 40 and 60 units of goods
respectively to get the maximum benefit that is U (40, 60) = 400,4 · 600,6 .

ECONOMY
Chapter 5
SERIES, DIFFERENTIAL
EQUATION AND DIFFERENCE
EQUATION
5.1. Series
5.1.1. Definition and properties

1
X
Definition 5.1. Given the series an = a1 + a2 + a3 + . . ., which are called the nth
n=1
partial sums of the series:
1
X
sn = ai = a1 + a2 + . . . + an
i=1
If the sequence {sn } converges and lim sn = s exists as a real number, then one says
X n!1
that the series an is convergent and we write:
1
X
a1 + a2 + . . . + an + . . . = s or an = s
n=1
The number s is called the sum of the series. If the sequence {sn } diverges then the series
is divergent.
1
X
Example 5.1. Assume that we know the nth partial sums of the series: an that is:
n=1
2n
s n = a1 + a2 + . . . + an =
3n + 5
70
Then the sum of the series is equal to the limit of the sequence {sn }:
1
X 2n 2 2
an = lim sn = lim = lim =
n!1 n!1 3n + 5 n!1 5 3
n=1 3+
n
Definition 5.2 (Geometric series). A geometric series is defined as follows :
1
X
arn 1
= a + ar + ar2 + . . .
n=1
Convergence If |r| < 1 and its sum is:

1
X a
arn 1
= |r| < 1
1 r
n=1
If |r| 1, then the geometric series is divergent.
Example 5.2. Find the sum of the geometric series:
10 20 40
5 + + ...
3 9 27
Solution
The first term is a = 5 and the ratio of each two consecutive terms is r = 2/3. Since
|r| = 2/3 < 1, the series in convergent and its sum is:
10 20 40 5
5 + + ... = 2
=3
3 9 27 1 3
1
X
Example 5.3. Find the sum of the series xn , where |x| < 1.
n=0
Solution
Notice that this series starts with n = 0, so its first term is x0 = 1. So

1
X
xn = 1 + x + x2 + x3 + x4 + . . .
n=0
This is a geometric series with a = 1 and r = x. Since |r| = |x| < 1 the series is
convergent:
1
X 1
xn =
1 x
n=0
CHAPTER 5. SERIES, DIFFERENTIAL EQUATION AND DIFFERENCE 71

EQUATION
1
X
Theorem 5.1. If the series an is convergent then lim an = 0.
n!1
n=1
P
Proof. Gi sn = a1 + a2 + . . . + an . Khi dó an = sn sn 1. Vı̀ an hi t nên dãy {sn }
cũng hi t. Cho lim sn = s. Vı̀ n 1 ! 1 khi n ! 1 nên ta cũng có lim sn 1 = s.
n!1 n!1
Therefore
lim an = lim (sn sn 1) = lim sn lim sn 1 =s s=0

n!1 n!1 n!1 n!1
Theorem 5.2 (Divergence test). If lim an does not exist, or if lim an 6= 0, the series
n!1
1
X
an is divergent.
n=1
1
X n2
Example 5.4. Prove that the series is divergent.
5n2 + 4
n=1
Solution
We have:
n2 1 1
lim an = lim = lim = 6= 0
n!1 n!1 5n2 + 4 n!1 5 + 4/n2 5
So according to divergence condition the given series is divergent.

P P P
Theorem 5.3. If an and bn are convergent then can (where c is a constant),
P P
(an + bn ) and (an ) bn ) are also convergent, and:
1
X 1
X
(i) can = c an
n=1 n=1
X1 1
X 1
X
(ii) (an + bn ) = an + bn
n=1 n=1 n=1
X1 X1 X1
(iii) (an bn ) = an bn
n=1 n=1 n=1

EQUATION
5.1.2. alternating series
Definition 5.3. alternating series is a series in which the positive terms and negative
terms appear alternatively. Here are two examples of alternating series:
X 1
1 1 1 1 1 11
1 + + + ... = ( 1)n
2 3 4 5 6 n
n=1
1
X
1 2 3 4 5 6 n
+ + + ... = ( 1)n
2 3 4 5 6 7 n+1
n=1
From the above example, we can see that the nth term of a series has the form:
an = ( 1)n 1
bn an = ( 1)n bn
where bn is a positive number.
Theorem 5.4 (Divergence conditions). If the alternating series :
1
X
( 1)n 1
bn = b1 b2 + b3 b4 + b5 b6 + . . . bn > 0
n=1
satisfies:
(i) bn+1  bn for all n.

(ii) lim bn = 0
n!1
then the series is convergent.
Example 5.5. the alternating harmonic series:
X 1
1 1 1 1 1 11
1 + + + ... = ( 1)n
2 3 4 5 6 n
n=1
satisfies:
1 1
(i) bn+1 < bn since <
n+1 n
1
(ii) lim bn = lim =0
n!1 n!1 n
So the series above is convergent according to the alternating series conditions.
1
X ( 1)n 3n
Example 5.6. the series is an alternating series. However:
4n 1
n=1
3n 3 3
lim bn = lim = lim =
n!1 n!1 4n 1 n!1 1 4
4
n
so condition (ii) is not satisfied. Instead, we look at the limit of the nth number in the
series:
( 1)n 3n
lim an = lim
n!1 n!1 4n 1
This limit does not exist, so the series is divergent according to the divergence conditions.

EQUATION
5.2. Power series

Definition 5.4. A series has the form of:
1
X
cn (x a)n = c0 + c1 (x a) + c2 (x a)2 + . . .
n=0
is called a Power series in the domain (x a) or a Power series having the central
point at a or a Power series in the neighborhood of a.
1
X
Example 5.7. What values of x are the series n!xn convergent at?
n=0
Solution
We denote an = n!xn . If x 6= 0, we have:
an+1 (n + 1)!xn+1
lim = lim = lim (n + 1)|x| = 1
n!1 an n!1 n!xn n!1
So the series above is divergent when x 6= 0. In other words, the series is only convergent
when x = 0.
1
X
Theorem 5.5. With a given power series cn (x a)n , There areare only three possi-
n=0
bilities exist
1. The series is convergent only if x = a.

2. The series is convergent for all x.
3. There exists a positive number R such that the series is convergent if |x a| < R and
is divergent if |x a| > R.
Watch out. The number R in the case of (??) is called radius of convergence of
the power series.
Example 5.8. Find the radius of convergence and the range of convergence of the series:
1
X ( 3)n X n
p
n+1
n=0
Solution
p
Set an = ( 3)n xn / n + 1. Then:
p r
an+1 ( 3)n+1 xn+1 n+1 n+1
= p · = 3x
an n+2 ( 3)n xn n+2

EQUATION
r
1 + (1/n)
=3 |x| ! 3|x| khi n ! 1
1 + (2/n)
According to the ratio criteria, the given series converges if 3|x| < 1 and diverges if
3|x| > 1. So the series is convergent if |x| < 1/3 and is divergent if |x| > 1/3. This
means that the radius of convergence of the series is R = 1/3.
Considering x = 1/3, the series becomes:
1
X 1 n 1
X
( 3)n 3 1 1 1 1 1
p = p = p + p + p + p + ···
n+1 n+1 1 2 3 4
n=0 n=0
and it is divergent. Considering x = 1/3, the series becomes:

1
X 1 n 1
X
( 3)n 3 ( 1)n
p = p
n+1 n+1
n=0 n=0
and it is convergent according to the alternating series conditions. So the range of con-
vergence of the series is ( 1/3.1/3].

EQUATION
5.3. Di↵erential equations and applications of di↵er-

ential equations in economics
5.3.1. Di↵erential equation
Definition 5.5. Di↵erential equation is an equation that includes an unknown function

and one or more its derivatives. order of a di↵erential equation is the order of the highest
derivative appearing in the equation. A simple example for a di↵erential equation is as
follows:
y 0 = xy
Example 5.9. Prove that each member of the following family of functions:
1 + cet
y=
1 cet
1
is a solution of the di↵erential equation y 0 = (y 2 1).
2
Solution
We use the quotient rule to di↵erentiate y:
1 cet cet 1 + cet cet cet c2 e2t + cet + c2 e2t 2cet

y0 = = =
(1 cet )2 (1 cet )2 (1 cet )2
The right hand side of the di↵erential equation becomes:

"✓ ◆2 # " 2 2
#
1 2 1 1 + cet 1 1 + cet 1 cet
y 1 = 1 =
2 2 1 cet 2 (1 cet )2
1 4cet 2cet
= =
2 (1 cet )2 (1 cet )2
So, for each value of c, the given function is a solution of the di↵erential equation.

EQUATION
5.3.2. Some common 1st order di↵erential equation
a) Separate-factor Equation A first order di↵erential equation with separable vari-

ables is an equation of the form:
g(y)dy = f (x)dx (5.1)
dy
Where y 0 = , g is a function that depends only on the variable y; f is a function
dx
that depends only on the independent variable x and f (x), g(y) is continuous (phn
s???) on some interval (a, b). The method of solving Separate-factor equations is to
integrate (indefinite integral) both sides of the equation (5.1). Equation (5.1) is of the
form:
g(y) · y 0 (x)dx = f (x)dx
Integrating both sides by the variable x, we have:

Z Z Z Z
0
g(y) · y (x)dx = f (x)dx , g(y)dy = f (x)dx , G(y) = F (x) + C
b) Separable equation
⇤ Consider a di↵erential equation of the form:
f1 (x)g1 (y)dy = f2 (x)g2 (y)dx (5.2)
Where f1 , f2 , g1 , g2 are continuous functions on the domain we concern.

Method: Assume f1 (x), g2 (y) 6= 0. This equation can be reduced to separable form by
dividing both sides of (5.2) by f1 (x), g2 (y) 6= 0. Then (5.2) becomes:
g1 (y) f2 (x)
dy = dx
g2 (y) f1 (x)
Watch out:
+ If y = a is a solution of the equation g2 (y) = 0, then we substitute y = a into the

equation (5.2) we deduce that y = a is also a solution of (??).
+ If in (5.2) we can change the roles of y and x, then the equation also has a solution
x = b, where b is the solution of the equation f1 (x) = 0.
⇤ Consider a di↵erential equation of the form:
y 0 = f (ax + by) (5.3)
Method: Set z = ax + by and consider z as a function with respect to x we have:

z 0 = a + by 0 . The equation becomes: z 0 = a + bf (z). This is the separable equation.

EQUATION
c) Homogeneous equation of the first order

Homogeneous equation of the first order is the di↵erential equation of the form:
✓ ◆
0 y
y =f (5.4)
x
Method:
y
• Step 1:Set t = and consider t as a function with respect to x. We have:
x
y = tx ) y 0 = t + xt0 .
• Step 2: Substituting this into the equation, we have:
t + xt0 = f (t) , xt0 = f (t) t
We have the form of the separable equation.

d) Linear equation of the first order
Linear equation of the first order is the di↵erential equation of the form:
y 0 + p(x)y = q(x) (5.5)
Where p(x), q(x) are continuous functions in some (a, b) interval.

+ If q(x) = 0, 8x then (5.17) is called a homogeneous linear di↵erential equation of
first order.
+ If q(x) = 0, 8x then (5.17) is called a inhomogeneous linear di↵erential equation
of first order.
Method:
• Solve the following homogeneous equation:
y 0 + p(x)y = 0
The equation can be rewritten as:
dy
= p(x)y (5.6)
dx
If y 6= 0, then dividing both sides of (5.6) by y we have:
dy
= p(x)dx
y
Integrating both sides of the above equation, we get:

Z
ln |y| = p(x)dx + ln |C1 |, (C1 6= 0)
R
p(x)dx
y = ±C1 e , (C1 6= 0)

EQUATION
R
p(x)dx
Hay y = Ce , (C 6= 0) (5.7)
We see that y = 0 is a solution of the equation (5.7). This solution can be

obtained from (5.7) if we also take C = 0 in (5.7). So, the general solution of the
homogeneous linear equation (5.6) is of the form:
R
y = Ce p(x)dx
, vi (C 2 R) (5.8)
• Solve inhomogeneous equation( by using undetermined coefficients):
y 0 + p(x)y = q(x) q(x) 6= 0 (5.9)
- Step 1: Find the general solution of the homogeneous equation:

R
p(x)dx
y = Ce
- Step 2: Find the general solution of the equation (5.7) of the form:
R
p(x)dx
y = C(x)e
Here the constant C is treated as a constant to the variable x. We have:

R R
y 0 = C 0 (x)e p(x)dx
+ C(x)( p(x))e p(x)dx
(5.10)
Substituting into the equation (5.7) we have:

R R R
0 p(x)dx p(x)dx p(x)dx
C (x)e C(x)p(x)e + C(x)p(x)e = q(x)
R
Z R
p(x)dx
Or C 0 (x) = q(x)e p(x)dx . Therefore, we have: C(x) = q(x)e dx + T ,
with T is an arbitrary constant. 3: Formulate the general solution of (5.7):
Z !
R R
y=e p(x)dx
q(x)e p(x)dx
dx + T (T 2 R)
Z !
R R
Hay y = e p(x)dx
q(x)e p(x)dx
dx + C (C 2 R) (5.11)
e) Bernoulli’s equation
a Bernoulli’s equation is the di↵erntial equation of the form:
y 0 + p(x)y = q(x)y ↵ (5.12)
With p(x), q(x) are continuous functions on some (a, b) interval and ↵ 6= 0, ↵ 6= 1.
Method: Assuming y 6= 0, multiplying both sides of the equation (5.12) by y ↵ we get:
↵ 0
y y + p(x)y 1 ↵
= q(x) (5.13)

EQUATION
Let z = y 1 ↵ be a function of the variable x, we have z 0 = (1 ↵)y ↵ y 0 or y alpha y 0 =

z0
. Substituting this into the equation (5.13) we have a linear equation of the first
1 ↵
order of the form:
z 0 + (1 ↵)p(x)z = (1 ↵)q(x)
Watch out:
+ We see that y = 0 is also a solution of the equation (5.13) when ↵ > 0.
+ When ↵ > 1 then y = 0 is a general solution.
+ When 0 < ↵ < 1 then y = 0 is a singular solution.
f ) Exact equation a exact equations is the di↵erential equation of the form
f (x, y)dx + g(x, y)dy = 0 (5.14)

@f @g
Where = , 8(x, y) 2 D. With the conditions above, the left side of the equation
@y @x
is the exact function with respect to variables x, y. This means:
du = f (x, y)dx + g(x, y)dy
Then the equation is rewritten as follows:
du = 0 or u(x, y) = C
So, solving the equation above becomes finding a function of two variables u(x, y) such
@u @u
that = f (x, y), = g(x, y). There are two ways to solve this equation:
@x @y
1. Method 1: Z Z
@u
• Integrate both sides by the variable x : dx = f (x, y)dx (consider y as
@x
a constant). Z
• Suppose that we have: u(x, y) = f (x, y)dx + C(y).
@u
• Take the derivative of both sides and substitute into the expression =
@y
g(x, y). From here we find the function C(y). Z
• So the general solution of the equation is u(x, y) = f (x, y)dx + C(y).
2. Method 2: Since du = f (x, y)dx + g(x, y)dy, so:
Zx Zy
u(x, y) = f (x, y)dy + g(x0 , y)dy
x0 y0
Zx Zy
Hay u(x, y) = f (x, y0 )dy + g(x, y)dy
x0 y0
Where M0 (x0 , y0 ) is an arbitrary point in the common domain of two functions

f (x, y) and g(x, y).

EQUATION
5.4. Di↵erence equations and applications of di↵er-

ence equations in economics
5.4.1. Di↵erence and di↵erence equations
a) Di↵erence
Given the function y = f (x) defined on the set D = x 0 , x1 , x2 , . . . , x n , . . . with
xi < xi+1 (8i). Assume x < x⇤ are two consecutive values of D. Set h = x x⇤ or
x⇤ = x + h. We call hy = h f (x) = f (x + h) f (x) the di↵erence of the function
f at x.
2
h f (x) = h( h (f (x)))
= h (f (x + h) f (x))
= (f (x + h + h) f (x + h) f (x + h) + f (x))
= f (x + 2h) 2f (x + h) + f (x)
is the second order di↵erence of function f at x. Similarly, we have the n order
di↵erence of the function f at x, denoted by n f (x)
h
Example 5.10. Given f (x) = x2 . We have:
h f (x) = f (x + h) f (x) = (x + h)2 x2 = 2xh + h2

2
h f (x) = (x + 2h)2 2(x + h)2 + x2 = 2h2
For simplicity and without loss of generality, we consider h = 1 and n f (x) to be

1
written as n f (x) from here to later part of the chapter. We also write y(x) as yx .
Then:
y(x) = y(x + 1) y(x) = yx+1 yx
2
y(x) = yx+2 2yx+1 + yx
b) Di↵erence Equation
A n order di↵erence equation is a recursively defined in the form
n
F x, yx , yx , . . . , yx = 0 (5.15)
The solutions of the equation (5.15) are functions y = y(x) defined on the set of
integer values D such that every x 2 D has F x, yx , yx , . . . , ny = 0. The
x
equation (5.15) can be converted to the equivalent form x, yx , yx+1 , . . . , yx+n =
0.
Example 5.11. Consider the following examples:
a. The di↵erence equation yx = 2 can be written as yx+1 yx = 2.
b. The di↵erence equation yx = 0.1y can be written as yx+1 yx = 0.1yx or
yx+1 0.9yx = 0.

EQUATION
5.4.2. Solving the 1 order of di↵erence equation
a) iterative method
A first order di↵erence equation is a recursively defined sequence in the form
(x, yx , yx+1 ) = 0 hay yx+1 = f (x, yx ) (5.16)
Solving (5.16) means finding yx at x = 0, 1, 2, . . . such that when substitute into

(5.16) the equality is true. We usually need to find a solution that satisfies the initial
condition y(0) = y0 . Then from (5.16) we have:
y1 = f (0, y0 )
y2 = f (0, y1 )
...
We find yx with x = 0, 1, 2, . . ..
Example 5.12. Consider the following examples:
a) Solve the equation y = 2, y(0) = y0 . We have yx+1 yx = 2 or yx+1 = yx + 2.
From that:
y1 = y0 + 2
y2 = y1 + 2 = (y0 + 2) + 2 = y0 + 2.2
y3 = y2 + 2 = (y0 + 2.2) + 2 = y0 + 3.2
...
yx = y0 + x.2, x = 0, 1, 2, . . .
b) Find the solution of the equation y= 0.1y, y(0) = y0 . We have yx+1 = 0.9yx .
Therefore:
y1 = 0, 9y0
y2 = 0, 9y1 = (0, 9)2 y0
...
yx = (0, 9)x y0 , x = 0, 1, 2, . . .
b) Linear di↵erence equation of first order with constant coefficients
Consider the equation:
yx+1 + ayx = b, (a, b 2 R, a 6= 0) (5.17)
The homogeneous equation is:
yx+1 + ayx = 0 (5.18)
There is a general solution of yx = C( a)x , C 2 R:

EQUATION
b
+ If a 6= 1 then an eigenvalue of (5.17) is yx = . Hence, the general solution
1+a
b
of (5.17) is yx = C( a)x + .
1+a
+ If a = 1 then an eigenvalue of (5.17) is yx = bx. Thus, the general solution of
(5.17) is yx = C( 1)x + bx = C + bx.
5.4.3. The applications in economics
a) Cobweb’s model
The execution of a production plan often takes time. When deciding on a production
plan, the producer must base it on current market prices, but the commodities will
only be sold in the next period. This means that the quantity supplied at the time t + 1
depends on the time t.
If the product price is p, the quantity supplied is QS , and the quantity demanded is
QD , the market equilibrium model is of the form:
8
>
< QD,t+1 = QS,t+1
>
QD,t+1 = a bpt+1 vi a, b, c, d là các hng s dng
>
>
:
QS,t+1 = c + dpt+1
The market equilibrium equation is:

✓ ◆
d a+c
pt+1 = pt + (5.19)
b b
Solving the linear di↵erential equation (5.19) with the condition p0 = p(0), we have:
a+c
⇣ a+c
⌘ ✓ d ◆t
pt = + p0
b+d b+d b
a+c
Let p = be the temporary equilibrium price. Then the solution of (5.19) is:
b+d
✓ ◆t
d
pt = p + (p0 p) (5.20)
b
We call (5.20) the trajectory in time. From (5.20) we see:
+ When p0 6= p the market price’s trajectory over time fluctuates around the equi-
librium price p.
+ The steady-state condition for the equilibrium price is d < b. If d > b then the
time trajectory of the price is further and further away from the equilibrium price.
b) Harrod’s model
The Harrod’s model is used to explain the dynamics of growth in the economy. As-
sumptions of the model:

EQUATION
+ Saving in each period is proportional to the income of the same period: St = sYt ,
s is a constant, 0 < s < 1 is called the marginal propensity to save.
+ Investment is proportional to the rate of change of national income over time:
Ii = a (Yt Yt 1) , a >0
+ Invest with savings in each period: It = St .

From the above assumptions we have:
a
a (Yt Yt 1) = sYt hay Yt = Yt 1
a s
This equation is equivalent to the equation:
a
Yt+1 = Yt
a s
The above equation has the solution:
⇣ a ⌘t
Yt = Y0 , vi Y0 = Y (0)
a s
a
Since > 1, the income increases continuously over time and does not fluctuate.
a s

EQUATION
Bibliography
[1] NGUYN TH TOÀN. Lý thuyt toán cao cp 1. NXB Thông tin và truyn thông,
năm 2012.
[2] PHÙNG DUY QUANG. Bài tp toán cao cp 1. NXB Thông tin và truyn thông,
năm 2012..
[3] LÊ SĨ DNG. Toán cao cp (phn gii tı́ch). NXB Giáo dc, năm 2007.
[4] LÊ THANH CNG. Bài tp Toán cao cp - hc phn II. NXB Giáo dc, năm 1998.
[5] LÊ DÌNH THÚY. Toán cao cp cho các nhà kinh t (Phn I, II). NXB Di hc Kinh
T Quc Dân, năm 2013.
[6] NGUYN DÌNH TRÍ. Toán cao cp (Tp 1, Tp 2, Tp 3). NXB Giáo dc, năm 2008.
[7] PHÙNG DUY QUANG. Hng dn gii bài tp Toán c s ng dng trong phân tı́ch kinh
t. NXB Thông tin và truyn thông, năm 2012.
[8] http: // khoacoban. ftu. edu. vn
[9] Gilbert Strang. Introduction to Linear Algebra, Fifth Edition. Massachusetts
Institute of Technology, 2016.
[10] Nathaniel Johnston. Introduction to Linear and Matrix Algebra 1st ed.
Springer, 2021.
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PhD. DANG LE QUANG

Ho Chi Minh city - 2022

PhD. DANG LE QUANG

Ho Chi Minh city - 2022

1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN ECONOMICS

2. Some open problems on functional analysis (in one variable) . . . . . . . 29

3. Di↵erentiation of Functions of Several Variables . . . . . . . . . . . . . . . . . . . . 39

4. APPLICATIONS FUNCTIONS OF MULTIPLE VARIABLES IN ECON-

5. SERIES, DIFFERENTIAL EQUATION AND DIFFERENCE EQUA-

TÀI LIU THAM KHO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

1.1. Review of single variable calculus

1.1.1. Some basics of functions of one variable

Definition 1.1. Let X, Y be subsets of R. Function f : X ! Y is called a function

Example 1.1. Find the domains of these following functions:

b. Suppose y = cos(x). Its domain is D = R.

or g f (x) = g f (x) . e.g y = cos(x3 ) is the function composition of y = cos(u) and

Example 1.2. Find the inverse functions of these following functions:

We call a function f (x) is monotonically increasing or monotonically decreasing on X if

x1  x2 (hoc x1 x2 ) ) f (x1 )  f (x2 ) hoc f (x1 ) f (x2 )

In general, a function, which is either entirely non-increasing or non-decreasing, is called

a. f (x) = x is strictly increasing on R.

CHAPTER 1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN 6

f (x)  M hoc f (x) M for all x 2 X

If a function f (x) is either bounded above or bounded below on X, we says f (x) is

Example 1.4. Consider these following functions:

a. the function y = sin(x)is bounded above R since 1  sin(x)  1. function y = x2 is

F Odd function and even function:

• a function f (x), which is defined on a symmetrical set X, is called a even function

• a function f (x), which is defined on a symmetrical set X, is called a odd function

F some of the most commonly used functions

1. Power function: y = x↵ (↵ 2 R, ↵ 6= 0). The domain of this function depends on ↵.

• when ↵ is a positive integer, D = R.

• when ↵ is a negative integer, D = R \ {0}.

• when ↵ is a positive non-integer, D = [0, +1).

• when ↵ is a negative non-integer D = (0, +1).

CHAPTER 1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN 7

2. Exponential function: y = ax (a > 0, a 6= 1). The domain of a exponential function

• The functions y = sin(x); y = cos(x) have the domains defined as D = R,and

F Inverse trigonometric functions:

1. The function y = arcsin(x).

2. The function y = arccos(x).

• The inverse function of y = cos(x) on the interval [0, ⇡] is denoted by y = arccos(x).

3. The function y = arctan(x).

CHAPTER 1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN 8

4. The function y = arccot(x).

5. In general, Power functions, exponential functions, logarithmic functions, trigonometric

1.1.2. Limit of a function

Definition 1.2. A function f is continuous at a if:

lim f (x) = f (a)

1. f (a) is defined (i.g a belongs with the domain of the function f ).

2. lim f (x) exists.

3. lim f (x) = f (a).

(a) Since f (2) is not defined, f is discontinuous at 2.

CHAPTER 1. APPLICATIONS OF FUNCTIONS OF ONE VARIABLE IN 9

(b) Here, f (0) = 1 is defined but

We see lim = 3 6= f (2) = 1 so f is discontinuous at 2.

Definition 1.3. A function f is called continuous at a if:

lim f (x) = f (a)