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10 Multivariable Function

A function from set A to set B assigns each element of A to one element in B, with A as the domain and B as the co-domain. The document provides examples of various functions, including demand, production, and utility functions, and discusses concepts like range, graphs, and level sets. It also illustrates the concept of indifference curves using a Cobb-Douglas utility function.

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12 views11 pages

10 Multivariable Function

A function from set A to set B assigns each element of A to one element in B, with A as the domain and B as the co-domain. The document provides examples of various functions, including demand, production, and utility functions, and discusses concepts like range, graphs, and level sets. It also illustrates the concept of indifference curves using a Cobb-Douglas utility function.

Uploaded by

fnlynh.vn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Function

Definition A function from a set A to a set B is a rule that


assigns to each element of A, one and only one element in B.
In notation, f : A ® B
A: domain of the function f
B: co-domain
y=f(x): image of x under f
Domain, Range etc.
For a function,
f : A® B
A: domain of f
B: co-domain of f
The set C Ì B is the range of f when f ( A) = C .
The set C is also called the image.

C B

A
Example f: Rn → R
Demand function: from prices and income to quantity demanded
f : R+3+ ® R+
q1 = f ( p1 , p2 , y ) = kp1a p2b y g

Production function: 2 inputs and one output

h : R+2 ® R+

q = h (L, K ) = ALa K b
b
q = h (L, K ) = a (c1L + c2 K
-a
)
-a - a
Example f: Rn → R
Utility function: from consumption of n commodities
to satisfaction (utility) level
U : R+n ® R

U = u ( x1 , x2 ,× × ×, xn ) = kx1a1 x2a 2 × × × xna n


Example f: Rn → Rm
Joint production function: three inputs and two outputs

F : R+3 ® R+2

q º (q1 , q2 ) = ( f1 ( x1 , x2 , x3 ), f1 ( x1 , x2 , x3 ), f1 ( x1 , x2 , x3 )) º F ( x1 , x2 , x3 )

(q1, q2 ) = ((x1 x2 x3 ), (2 x10.5 x2 ), (x1 + 3x2 + x3 ))


Graph of Functions
Let f : U Ì R n ® R m. Define the graph of f to be the subset of R n +m
consisting of all points
(x , x ,× × ×, x , f (x , x ,× × ×, x ), f (x , x ,× × ×, x ),× × ×, f (x , x ,× × ×, x ))
1 2 n
1
1 2 n
2
1 2 n
m
1 2 n

We call the function f a real-valued function when m=1 and its graph is a
subset of Rn+1 defined as

(x1, x2 ,× × ×, xn , f (x1, x2 ,× × ×, xn ))
Graph of f: R2 → R
2
Graphical illustration of f : U Ì R ® R
Need three dimensional space: two for the input variables, one
for the output variable
Graph of f: R2 → R

z
z = f ( x, y ) where ( x, y ) Î U

x
Level Set
Let f : U Ì R n ® R m and c Î R m . Then, the level set of value c is
defined as {x Î U f (x ) = c}Ì R n .
When m=1, we call the set the level curve: combination of input variables
that have the same given value of output variable.

Example: z = x 2 + y 2

Level curve for z=1: x 2 + y 2 = 1 y


2 2
Level curve for z=2: x + y = 4

x
Graph and Level Set

z
z = x2 + y2

x2 + y2 = 4

x2 + y2 = 3

x2 + y2 = 2

x2 + y2 = 1
y

x
Example: Utility Function and Indifference Curves

Cobb-Douglas utility function


U = u ( x1 , x2 ) = x1 x2
Indifference curve: the locus of combinations of x1 and x2 that
give the same level of utility – level curve
k
U = k Þ k = x1 x2 Þ x2 =
x1

x2

x1

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