FUNCTIONS AND THEIR LIMITS

In mathematics we usually deal with two kinds of quantities namely constants and variables. A quantity
which is liable to vary is called a variable quantity or simply a variable. Temperatures, pressure, distance
of a moving train from a station are all variable quantities. On the other hand, a quantity that retains its
value through all mathematical operations is termed as a constant quantity or a constant. Numbers like
4, 5, 2.5, etc., are all constants.
Example: Find the limit of

as x 1.
Solution. Let >0 be any number.
Take = .
Now x-1 < => x-1 <
=> x +1 2 <
=>

- 2 <
=>
1
2
1
im
1
l
x
x
x

=2.
h- Method for determining limits
We put a+h in place of x and simplify such that h gets cancelled from denominator and numerator.
Putting h=0, we get limit of f(x) as x a.
Example. Evaluate
1
lim
x

.
Solution.
1
lim
x

= lim
h o
()

()

= lim
h o

= lim
h o

CONTINUOUS FUNCTIONS
We have seen in example 2 that
2
lim
x

= 4 which is same as value of

at x=2. Whereas in example

4,
1
lim
x

= 2 but the function itself is not defined at x=1.

Again consider f(x) =

, x3.
= 1 x=3.
In this case
3
lim
x

= 6, and f(3) = 1.
Thus a function may possess a limit as xa but it may or may not be defined at x=a. even if it is
defined at x=a, its value may not be equal to its limit. This prompts us to define the following type
of functions.
A function f(x) is said to be continuous at x=a if lim
x a
f(x) = f(a).
Example. A function f is defined as
F(x) =

when x 1
= 2 when x=1
Test the continuity of the function at x = 1.
Solution.
1
lim
x +
f(x) =
1
lim
x +
()()
()()

=
1
lim
x +

=
0
lim
h

=
0
lim
h

= -1
But f(1) =2
So, f is not continuous at x=1.
DIFFERENTIATION
Let y be a function of x. we call x an independent variable and y dependent variable.
REMARK: there is no sanity about x being independent and y dependent. This depends upon which
variable we allow to take any value and then corresponding to that value determine the value, of other
variable. Thus in y=x
2
, x is independent variable and y dependent whereas the same function can be re-
written as x = y. now y is independent variable, and x is dependent variable. Such an inversion is not
always possible. For example in y=sin x + x
3
+ log x + x
1/2
it is rather impossible to find x in terms of y.
Differentiation calculus is based on the idea that value of one quantity may depend on the value of
another quantity. The statement Y is a function of x is expressed mathematically by writing y=f(x). as the
value of x varies, the value of y varies in a way determining by a particular function, for this reason y is
called the dependent variable and x is called the independent variable.
In business, interest is not only restricted to expressing relationships in terms of functions but also
investigating the effect a (small) change in one variable has on another. This is done by means of
differentiation.
The First Principle of differentiation.
Given a function y =x
2

Y + y = (x+ x)
2

Y + y = (x+ x) (x + x)
Y + y = x
2
+ x x + x x + (x)
2

Y + y = x
2
+ 2 x x + (x)
2

y = x
2
+ 2x x + (x)
2
x
2

y = 2x x + (x)
2


y
x
o
o
=
()

y
x
o
o
=

()

y
x
o
o
= 2x + x
Limiting value of = 0
y
x
o
o
= 2x + 0.
Example. Find
dy
dx
and
dy
dx
| |
|
\ .
x=3
for y = x
3
.
Solution. We have y=x
3
.
Let x be change in x and let the corresponding change in y be y
Then y+y = (x+x)
3
y = (x + x)
3
y = (x + x)
3
x
3

= 3x
2
(x) 3x(x)
2
(x)
3


y
x
o
o
= 3x
2
3x(x) (x)
2

Consequently,
dy
dx
=
0
lim
x o
y
x
o
o
= 3x
2
.
Also
dy
dx
| |
|
\ .
x=3 = 3.3
2
= 27.


SOME TECHNIQUES USED IN DIFFERENTIATION
Differentiation of a constant.
If y = a, where a is a constant
dy
dx
= 0.
Y= ax
n

dy
dx
= nax
n-1

100x
0

= 0x 100 x X
0-1

= 0.
Product rule
If Y= UV
Then
dy
dx
= u
dv
dx
+ v
du
dx
.
The differential coefficient of the product of two functions is equal to the first multiplied by the
differential coefficient of the second plus the second multiplied by the differential coefficient of the
first.
If y = uv
y y = (u u) (v v)
y y = uv u v v u u v
y = uv u v v u u v uv
y = uv vu uv

y
x
o
o
= u
v
x
o
o
+ v
u
x
o
o
+
u v
x
o o
o

As x 0 as u approaches 0 v approaches 0 and
y
x
o
o
and
v
x
o
o
and
u
x
o
o
tend to be limiting
values.

y
x
o
o
= u
v
x
o
o
+ v
u
x
o
o

Quotient rule
If y =

where u and v are both functions of x then

y
x
o
o
=

u
x
o
o

v
x
o
o

.
Y =

Y y =

y =

=
() ()
()

y =

y =

y
x
o
o
=

As x approached the value of 0 so v 0 and
y
x
o
o
=
y
x
o
o


y
x
o
o
=

u
x
o
o

v
x
o
o

Function of a function rule
The function y = (2x+1)
3
is function of 2x +1 which in turn is a function of x. more specifically y is
cube of the function 2x+1. We say that y is a function of the function in this case.
Illustration y = (2x+1)
3


y
x
o
o
= 3(2x +1)
2
(2)
= 6(2x+1)
2

IMPLICIT DIFFERENTIATION
Explicit functions are functions in which the dependent variable is to the left of equal sign
and the independent variable is to the right.
Occasionally, implicit functions are encountered in which both variables are on the same side of the
equal sign, some implicit functions can be easily converted to explicit others cannot. For those not
readily convertible the derivative maybe found by implicit differentiation.
The following represent the symbol explicit and implicit functions. In other to find
y
x
o
o
from an
implicit function, we need to be able to differentiate expressions such as y
2
, xy, xy
2
with respect to x.
1. The differential coefficient of y
2
with respect to y is 2y. The differential coefficient of y with
respect to x is
y
x
o
o
. The differential coefficient of y
2
= 2y
y
x
o
o
.
2.
x
o
o
= (xy) = x
y
x
o
o
+y, u=x, v=y,
u
x
o
o
=1
xy = u
v
x
o
o
+ v
u
x
o
o

= x
y
x
o
o
+y+1
= x
y
x
o
o
+y
=>
v
x
o
o
=
y
x
o
o

=> v = y
=> v=y

Maximization and Minimization.
Maximimization and minimization has to do with finding the shape of a function in
particular. It has to do with finding the hills and valleys of a function. Frequently the decision maker
want to decide upon a course of action that will minimize (i.e find the hills) or maximize (i.e finding
the valley) of something.
y
x
o
o
= F(x)
Criteria for relative maxima
Given a function y= F(x), we have a maxima at the point x= x0, provided that
1. F(x0) = 0 (the necessary condition)
2. F(x0)<0 (the sufficiency condition)
These conditions are referred to as first order and second order conditions respectively.
Criteria for relative minima.
Given a function y= F(x), we have a minima at the point x= x0, provided that
1. F(x0) =0 (the necessary condition).
2. F(x0) =>0 (the sufficiency condition)
Illustration: Given that 3x
3
-9x
2
-27x +18
You are asked to find (i) maxima and (ii) minima value.
Solution. 3x
3
-9x
2
-27x +18
Differentiate the above function
y
x
o
o
= 9x
2
-18x -27 (equate x to 0)
9x
2
-18x 27=0
By using factorization method or factorize
9x
2
-9x-27x 27-27 = 0
(9x
2
+9x) (27x+27) = 0
9x(x+1) 27 (x+1) = 0
(9x -27)(x+1) = 0
Either 9x -27 = 0 or x+1 =0, x=-1
9x = 27, x =

, x=3.
Re- differentiate 9x
2
18x 27
F(x) =

= 18x 18
Substituting x =3 in F(x)
= 18(3) -18
=54 18 =36.
Then substitute x=-1
= 18(-1) -18
=-18-18
= -36
1. Maximization =-36
2. Minimization = 36
Substitute x=3 in the original function
=3(3)
3
9(3)
2
27 (3) + 18
=81 81 -81+18
=-63
Substitute x=-1 in the original function
= 3(-1)
3
9 (-1)
2
27(-1) +18
= -3-9+27+18
=33
Derivative of a derivative or (higher order derivative).
Derivative of a higher order
y
x
o
o
is the first derivative of y with respect to x. the second derivative is
obtained by differentiating with respect to x twice and is written

y
x
o
o
| |
|
\ .

Derivative of the higher order can be defined similarly
y
x
o
o
= F(x),

= F(x)
Illustration: Given y=5x
4
+ 2x
3

Solution: Y = 5x
4
+ 2x
3

F(x) = 20x
3
+ 6x
2

F(x)= 60x
2
+ 12x
F(x) = 120x 12
Economic application of differentiation
Marginal Concept: Marginal cost in economics is defined as the change in total cost incurred from
the production of an additional limit. Marginal revenue is defined as the change in total revenue
brought about by the sale of an extra unit of goods.
Since total cost (TC) and total revenue (TR) are both function of the level of output (Q), marginal
cost (MC) and marginal Revenue (MR) can be expressed mathematically as derivative of the
respective total function.
Thus if TC =TC (Q) Then MC =

and If MR = TR (Q) then MR =

In short, the marginal concept of any economic function can be expressed as the derivative
of total function we may also define these other functions of output by dividing TR,TC and T by the
level of output to be given
0.1 Average Revenue

0.2 Average cost (AC)
AC = AC(q) =

0.3 Average profit = AP(Q) =

Another frequently used concept within economics is elasticity. The price elasticity , measures the
percentage change in quantity associated with a percentage change in price. The price elasticity of
demand is given by
Ed =

We said that, it is elastic if the absolute value is greater than 1.
In elasticity if the absolute value is less than one (1) and unitary elastic if the absolute value is equal
to 1.
Illustration 1
A shoe manufacturer has the following short run total cost function TC= 100+25q-5q
2
+q
3
. Derive
the average variable cost (AVC) function and show that, when AVC is a minima, marginal cost (MC)
=ATC. Derive the average total cost (ATC) function and show that ATC is minima when q 4.73 and
MC= A.T.C. compare the minimum values of AVC and ATC.
Solution
TC= (100 + 25q-5q
2
+ q
3
)
TC= TFC + TVC
TVC = TC TFC
= 100 +25q 5q
2
+ q
3
100
TVC = 25q 5q
2
+ q
3
.(i)
a. AVC =

AVC =

AVC = 25 5q + q
2
..(ii)
Differentiating equation with respect to q gives
AVC = -5 + 2q = 0
2q=5
q=

q= 2.5
AVC = 2 > 0 (re-differentiate AVC = -5 +2q)
AVC is minimized at q=2.5
AVC = 2
MC = TC where TC= 100 25q 5q
2
+ q
3

= 25 10q + 3q
2

By substituting the value of q=2.5
MC = 25 10(2.5) + 3(2.5)
2

= 25 25 + 18.75
= 18.75
Again substitute the value of q = 2.5 into (ii)
AVC = 25 5q + q
2

= 25- 5(2.5) + (2.5)
2

= 25 125 + 6.25
= 18.75
MC = AVC
b.
ATC =

TC= 100 + 25q 5q
2
+ q
3

ATC =

.(iii)
ATC = 100q-
1
+ 25 5q + q
2

ATC =

- 5 + 2q
D=

- 5 + 2q =0
=

= 5 =>

=5
= -100 + 2q
3
= 5q
3
=> 2q
3
-5q
3
100 = 0
ATC =

- 5 + 2q
= -100q
-2
5 + 2q
ATC = 200q
-3
+ 2
=

+ 2
=

+ 2 =

.
2
= 3.89 >0
Hence, ATC is a minima when q4.73 at the point, we have ATC =

.
+25
ATC =

.
+ 25 5(4.73) + (4.73)
2

= 21.14 + 25 23.65 + 22.37
= 44.86
45
MC = 25 -10q + 3q
2

substitute the value of q = 4.73 into equations.
MC = 25 -10(4.73) 3(4.73)
2

= 25 47.3 +67.12
= 44.82
45
Since the value of q is an approximate there will be a small difference between average total cost
and the marginal cost so we have ATC = MC at the point of minimum ATC.
The minimum value of AVC = 18.75.
The minimum value of AVC given by 18.75


Exercises
1. Differentiate 3x
2
+12x -15 by means of first principles.
2. Given y = x-
2
(4+3x
-3
) find
y
x
o
o
.
3. Given y=

find
y
x
o
o
.
4. Given 45x -

what is the maxima value?

5. Given 3x
2
-16x +57 what is the minima value?