Midsem Sol

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Solution - MID SEM 1

Question 1
(i) To show: ∀ > 0, ∃δ > 0 s.t. |x − y| < δ gives |φ(x) − φ(y)| < 
Given: |φ(x) − φ(y)| ≤ (x − y)2 (1)

Choose δ = .
Using (1), |φ(x) − φ(y)| ≤ (x − y)2 < δ 2 = 
Hence proved.
(ii) |φ(x) − φ(y)| ≤ (x − y)2
⇐⇒ −(x − y)2 ≤ φ(x) − φ(y) ≤ (x − y)2
dividing both sides by (x − y)
φ(x)−φ(y)
−(x − y) ≤ x−y
≤ (x − y)
on taking limits
φ(x)−φ(y)
limx→y [−(x − y)] ≤ limx→y x−y
≤ limx→y (x − y)
Now, limx→y [(x − y)] = 0
Therefore by squeeze theorem
φ0 (x) = 0
φ(x)−φ(y)
(iii) Choose any x < y. By Intermediate Value Theorem, x−y
= φ0 (z) for some z ∈ (x, y)
Since φ0 (z) = 0∀z, we have φ(x) = φ(y).

Question 2
Since the objective function is increasing in both x1 and x2 in the neighbourhood of 0 (check
partials of the objective function with respect to x1 and x2 ), the maximum can not be obtained at
the boundary points (that is either x1 = 0 or x2 = 0). If it exists, maximum will be an interior
solution.
√ √
π(p, w1 , w2 ) = maxx1 ,x2 >0 [p( x1 + x2 ) − (w1 x1 + w2 x2 )].

∂π p
FOC: ∂x1
= √
2 x1
− w1

∂π p
∂x2
= √
2 x2
− w2

1
Critical Point: (x∗1 , x∗2 ) = (( 2wp 1 )2 , ( 2wp 2 )2 )

∂2π 3
SOC: ∂x21
= − p4 (x1 ) 2 .

∂2π 3

∂x22
= − p4 (x2 ) 2

∂2π
∂x2 ∂x1
=0

 
p − 23
− (x1 ) 0
H(x1 , x2 ) =  4 3

0 − p4 (x2 )− 2

Evaluating H(x1 , x2 ) at the critical point:

 
− p ( 2w1 )3 0
H(x∗1 , x∗2 ) =  4 p 
0 − p4 ( 2wp 2 )3

H(x1 , x2 ) is a negative definite (Show either by the signs of principle leading minors or z T Hz < 0
for z 6= 0). Hence, it is a strict local maximum. This is also Global Maximum as the objective
function decreases in x1 and x2 (check partials) as x1 , x2 → ∞

Question 3

(i) Counterexample - A = (0, 1) and α = 1. Here, a < α forall a ∈ A but Sup A = 1 = α.

(ii) Let  > 0 be arbitrary. Then since {xn } → x, there exist N ∈ N such that for all n ≥ N , we
have |xn − x| < . Then if n ≥ N , the reverse triangle inequality shows:

||xn | − |x|| ≤ |xn − x| < 

We have shown that for all  > 0, there exists N ∈ N such that if n = N , then ||xn | − |x|| < .
Therefore {|xn |} → |x|.

Question 4

(i) There are many example which will work. For instance,In = (0, n1 ). Note that I1 ⊃ I2 ⊃ I3 ⊃
· · · ⊃ In . Also, ∩∞
n=1 In = φ. The intersection is an empty set as required.

2
(ii) f : < → <


 log(x) if x > 0
f (x1 , x2 ) =
 0 if x ≤ 0

This function is NOT one-one. f (−1) = f (−2) = 0 and −1 6= −2. Also, this function is onto,
take any point in the Range, we can always find its pre-image in the domain. Let y = log(x), then
10y = x and we can find always find x for any y in <.

Question 5
(i) ∀ > 0, ∃x ∈ B (p) s.t. x ∈ L. (Since p is a limit point of L)

Since x ∈ L, x is a limit point of E (Definition of L)

Take 0 =  − d(x, p)

⇒ B0 (x) ⊂ B (p) (1)

∃y ∈ B0 (x) s.t. y ∈ E. (Since x is a limit point of E)

⇒ y ∈ B (p) s.t. y ∈ E (from (1))


Hence proved.

(ii) We first prove that E ∪ L is a closed set. E ∪ L is a closed set iff it contains all its limit points.
Let s be a limit point of E ∪ L ⇒ Either s is a limit point of E or a limit point of L. If s is a limit
point of L then by (1), s is also a limit point of E. Therefore s must be a limit point of E.
Hence s ∈ L and s ∈ E ∪ L.
Now we show that E ∪ L the smallest closed set containing E. Take any L0 ⊂ L. L0 does not have
all limit points of E. Hence E ∪ L0 is not a closed set.

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