Concavity of a function pdf file

Logconcavity of the partition function article pdf available in the ramanujan journal 381 october 20 with 78 reads how we measure reads. Quasiconcavity of the utility function has, therefore, become the standard and less restrictive assumption in the study of demand theory. Applying all the information given in the last blog in addition with info from this blog you will see how they are used together. How do you determine the concavity of a quadratic function. If fx 0 for all x on the interval, then f is concave up on the interval.

Of particular interest are points at which the concavity changes from up to down or down to. Second derivative and concavity graphically, a function is concave up if its graph is curved with the opening upward figure 1a. Points where a function changes concavity are called inflection points. Note that a function with a relative minimum is concave up on an interval around it. The calculus concepts of concavity and inflection points are often given meaning through the shape or curvature of a graph. Convexity of the ratio of the standard normal pdf by its cdf. Precisely, every point at which the derivative of a concave differentiable.

Extrema, concavity, and graphs in this chapter we will be studying the behavior of differentiable functions in terms of their derivatives. The sign of the first derivative of a function gives us information about its monotonicity. If the function wuy ln uy that is, if the concavity of the welfare function is the same as the concavity of the utility function the concavity of the welfare function will not add nearly as much to the aggregate social value of income redistribution as was already present on account of the concavity of the utility function. Concavity and the second derivative test the graph of a differentiable function yfx is. The sign of the second derivative gives us information about its concavity. Concavity is another quality of a function that we can get from a sign chart, the sign chart from the second derivative. The second derivative of a function f measures the concavity of the graph of f. R is concave convex if and only if its restriction to every line segment of rn is concave convex function of one variable. To find the inflection points of a function, we need to find the second derivative, then set it equal to 0 and solve for x. Concavity is all about the rate at which the slope of a curve is increasing or decreasing.

Points where concavity changes between concave and convex are inflection points. On one side of each arrow, there is the constraint variable with respect to which one has to minimize to perform the transformation. Lecture 3 restriction of a convex function to a line f is convex if and only if domf is convex and the function g. Of particular interest are points at which the concavity changes from up to down or down to up. Understanding concavity wolfram demonstrations project. How to determine the concavity of a function quora. Roughly speaking concavity of a function means that the graph is above chord. Find the concavity of a function using this interactive quiz and printable worksheet combo. How do you find the concavity of a rational function. Notice that when we approach an inflection point the function increases more every timeor it decreases less, but once having exceeded the inflection point, the function begins increasing less or decreasing more. Increasing and decreasing functions, min and max, concavity. In the theory of the firm it is almost always postulated that there are gains to input diversification. If you havent already, label the local maximaminima, absolute maximumminimum, in ection points, and where the graph is concave up or concave down. Exercises and problems in calculus portland state university.

However, ana lytics of the concavity due to liquidity constraints has remained unknown until recently. An inflection point is a point on the graph where the second derivative changes sign. Rigorously, a differentiable function is said to be concave up if its derivative is increasing, and concave down if its derivative is decreasing. The book includes some exercises and examples from elementary calculus. If we have a function that is a sum of functions that we know are concave, or is a concave increasing function of a concave function, the following result is useful.

If we are trying to understand the shape of the graph of a function, knowing where it is concave up and concave down helps us to get a more accurate picture. Can you give an example of a quasiconcave function that is not concave. A real valued function f defined on an interval j is concave up on j if the. If is constant, then the function has no concavity. Similarly, a function is concave down if its graph opens downward figure 1b. Similarly, a function with a relative maximum is concave down on an interval around it. Concavity of the function can be used also to determine if there is an extreme value or not at a critical point of f. Given the graph of a function, the hypograph of f, written hypf, is the set of points that lies on or below the graph of f, while the epigraph of f, written epif, is the set of points that lies on or above the graph of f.

Concave function the differentiable function f is concave on x if for any x x x01, and any. Concavity is found from the sign chart of the second derivative. If fx concavity or convexity of functions in terms of the convexity of particular sets. Concavity, inflection points, and second derivative duration. An inflection point is a point on a curve at which the concavity changes sign from plus to minus or.

Determining the concavity of a function mathispower4u. A differentiable function on some interval is said to be concave up if is increasing and concave down if is decreasing. Any values we find are the potential inflection points of the function. In other words, we need to determine the curvature of the function. If a function has a second derivative, then we can conclude that y. While they are both increasing, their concavity distinguishes them. Definition if f is continuous ata and f changes concavity ata, the point. Increasing and decreasing functions characterizing functions behaviour typeset by foiltex 2. Critics of this account often rely on assumptions about preferences over wide ranges of. Increasing and decreasing functions, min and max, concavity studying properties of the function using derivatives typeset by foiltex 1. The second derivative and points of inflection university of sydney. Concavity and convexity, inflection points of a function.

Graphically, a function is concave up if its graph is curved with the opening upward figure 1a. For each problem, find the xcoordinates of all points of inflection and find the open intervals where the function is concave up and concave down. It has many important applications in mathematics, not the least of which is to help you decide which part of a hill to cycle up. Concavity properties of solutions to some degenerate. Technical note on constant returns to scale production functions. One characteristic of the inflection points is that they are the points where the derivative function has maximums and minimums. A function whose second derivative is positive will be concave up also referred to as convex, meaning that the tangent line will lie below the graph of the function. Quasiconcavity is a generalization of the notion of concavity.

The notions of concavity and convexity are important in optimization theory because, as we shall see, a simple condition is sufficient as well as necessary for a maximizer of a differentiable concave function and for a minimizer of a differentiable convex function. Concavity theorem let f be twice differentiable on an open interval, i. The point at which the concavity changes and at which there exists a tangent line to the graph of the function is called the point of inflection. It is also possible to characterize concavity or convexity of functions in terms of the convexity of particular sets.

John riley minor corrections 25 july 2016 concave functions in economics 1. In order to prove that theyre inflection points, we have to test points on both sides of the. A quasiconcave utility function shares with a concave function the fundamental property of representing convex preferences. In the pertinent literatures, notably on optimal income taxation and on normative inequality measurement, it seems to be accepted that the role of these two sources of concavity is symmetric. It is well known that the torsion function of a convex domain has a square root which is concave. The function is concave on if, for any two points and on the graph, the chord is below the arc see figure 9b. Notes,whiteboard,whiteboard page,notebook software,notebook, pdf,smart,smart technologies ulc,smart board interactive whiteboard created date. The power one half is optimal in the sense that no greater power ensures concavity for every. Moreover, convexity and concavity allow for very elegant proofs in inequality theory, cf. We may determine the concavity or convexity of such a function by examining its second derivative. Understanding concavity and inflection points with differentiation.

Increase, decrease, and concavity solutions to selected problems calculus 9th edition anton, bivens, davis matthew staley october 7, 2011. R is concave convex if and only if its restriction to every line segment of. You can use the second derivative to tell if a function is concave or convex. An inflection point occurs wherever the concavety of ma. The proof of the first part is an exercise, and the proof of the second part is symmetric with the proof of the first part. Carroll and kimball 2 made the first important attempt in setting an analytical foundation and showed the concavity of the consumption function when the consumers optimization has a finite horizon. How to determine the concavity of a function youtube. On the concavity of the consumption function with a. A function is said to be concave down on an interval if the graph of the function is below the tangent at each point of the interval. Concavity and convexity for the analysis of a function we also need to determine where the function is concave or convex. Concave and convex functions1 washington university.

An inflection point is a point on the graph of a function where the concavity of the function changes. Note that the increasing or decreasing behaviour of the first derivative f x of the function fx does not necessarily correspond to the increasing or decreasing of the function fx itself. A twice differentiable function mathfxmath is concave up wherever its second derivative is positive, and is concave down wherever it is negative. I understand your explanation of expected utility but in the previous comment i suggested that the convexity of preferences has as an implication that there is a concave utility representation. Pdf concavity, response functions and replica energy. Suppose that convexity and concavity interchange at. Concave functions of two variables while we will not provide a proof here, the following three definitions are equivalent if the function f is differentiable. A differentiable function f is strictly concave on an interval if and only if its derivative function f. More generally, a function is said to be concave up on an interval if the graph of the. A convex function has an increasing first derivative, making it appear to bend upwards.

Understanding basic calculus graduate school of mathematics. Pdf produced by some word processors for output purposes only. Necessary and sufficient conditions for a maximum 10 5. Concave function the function f is concave on if for any and any definition 2. The rst function is said to be concave up and the second to be concave down. D an inflection point is a point on a function where the functions concavity changes. In contrast to logarithmically convex logconvex functions, their. Rn checking convexity of multivariable functions can be done by checking.

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