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Learning objectives:
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Topics reviewed
c Ronald Wendner
GE-Math-1
v2.1
c Ronald Wendner
GE-Math-2
v2.1
c Ronald Wendner
GE-Math-3
v2.1
a is the brother of b
a is to the left of b
a>b
ab
a=b
a%b
ab
quasi-ordering
reflexivity: a R a for all a X
transitivity: a R b, and b R c a R c.
complete ordering
for all a, b X, either a R b or b R a or both
how to compare Pizza with Rogan Josh?
Rational % are a complete ordering (binary relation)
on consumption space
c Ronald Wendner
GE-Math-4
v2.1
Functions, Sequences
A function f : A B is a rule that associates to every
element of set A exactly one element in set B. Set A is called
the domain of the function, and set B is called the codomain
of the function.
onto if for every y B, x A | y = f (x)
one to one if for any two elements in the domain, x, x0 A
with x 6= x0, it holds: f (x) 6= f (x0)
Example 1. Consider f (x) : R+ R+, with f (x) = x2. Then
f (x) is onto and one to one.
Example 2. f (x) : R R+, with f (x) = x2. Then f (x) is
onto but not one to one
c Ronald Wendner
GE-Math-5
v2.1
Sequence f : N R
elements: xn, n = 1, 2, ....;
sequence: {xn}
n=1
Theorem 1 (Bolzano-Weierstrass) .
Every bounded sequence in RL contains a convergent
subsequence.
c Ronald Wendner
GE-Math-6
v2.1
Continuity of a function
Let f (x) : X R, X RL. f (x) is continuous at x if for
every sequence {xn} x, {f (xn)} f (x).
f (x) is continuous if function is continuous at all x X.
if f (.) is continuous: image of compact set is compact
Theorem 2 (Extreme value theorem) .
If f (.) is continuous and X compact then f (.) has a maximum/minimum.
compactness? ...
x, x X R , d(x, x )
qP
L
l=1 (xl
x0l )2
GE-Math-7
v2.1
closed set
X RL closed if every converging sequence in X
converges in X
consider X = (0, 1], {xn}
n=1 = 1/n
example: closed interval: [a, b] R {x R | a x b}
closed sets and maximizing bahavior
bounded set
X bounded if for all x, x0 X, d(x, x0) <
compact set
X RL compact if X closed and bounded
boundary of X
boundary point x X: every N(x) contains x0 X
and x0 6 X
boundary of X = set of all boundary points
example: X = (0, 1], boundary points = {0, 1}
closure of set X: X
X X boundary of X
XX
X = X iff X closed
c Ronald Wendner
GE-Math-8
v2.1
c Ronald Wendner
GE-Math-9
v2.1
Separation Theorems
Consider p RL
hyperplane H(p, k) {x RL | p x = k}
budget line
(p = prices, x = consumption bundle, k = wealth)
isoprofit line (k = profit)
Lemma 1 Consider K RL nonempty, closed, convex, and
z 6 K, z RL. Then y K and p RL\{0}: p z < k =
p y p x for all x K.
c Ronald Wendner
GE-Math-10
v2.1
c Ronald Wendner
GE-Math-11
v2.1