Chapter 15

MATRIX AND VECTOR ALGEBRA

Systems of Linear Equations
 Solution
 • Solution: an ordered set of numbers (s1 ,s2 ,…sn )
 • A system of equation has at least one solution: consistent (nhất quán)
 • A system of equation has no solution: inconsistent (không nhất quán)
 Square matrix

 When m = n: a square matrix of order n.

 If A = (aij )n×n, then the elements a11, a22, . . . , ann constitute the main
diagonal that runs from the top left (a11) to the bottom right (ann).
 Note that only a square matrix can have such a main diagonal ( đường chéo
chính)
MATRIX ADDITION AND MULTIPLICATION
BY A SCALAR
RULES FOR MATRIX ADDITION AND
MULTIPLICATION BY SCALARS
MATRIX MULTIPLICATION
RULES FOR MATRIX MULTIPLICATION
THE IDENTITY MATRIX
The transpose
Rules for transposition
Symmetric Matrices
Note
 AB # BA
 AB = 0 does not imply that either A=0 or B=0
 AB = AC and A # 0 do not imply that B=C
 A square matrix A is said to be idempotent if
A2 = A
 A square matrix P is said to be orthogonal if
P’xP = In
CHAPTER 16

DETERMINANTS AND
INVERSE MATRICES
1. Determinants of Order 2 (Định thức cấp 2)
The determinant of A is denoted by either det(A) or, more
usually as in this book, by |A|. Thus,

for any 2 × 2 matrix A

- If |A| # 0, then the two lines intersect at a unique point (x1, x2)

- If |A| = 0, the expressions for x1 and x2 become meaningless

2. Determinants of Order 3
 Cramer’s rule

If |A| # 0, then it has

3. Sarrus’s Rule
4. Determinants of order n
Special Cases

Upper triangular

Lower
triangular.
5. Basic Rules for Determinants
6. The Inverse of a Matrix
 Given a matrix A, we say that X is an inverse of A if there exists a matrix X such that

+ A square matrix A is said to be singular if |A| = 0 and

nonsingular if |A| # 0.

+ Only square matrices can have inverses. But not even all square matrices have inverses
7. INVERSE OF A MATRIX OF ORDER 2
Note:
8. Two ways to find the Inverse

C+ = (Cij) denote the matrix of cofactors

Example:

A has an inverse if and only if |A|# 0. Here we find that |A|=−5, so the inverse exists.
One can check the result by showing that AA−1 = I.
Example:
This can be checked by using matrix multiplication
to verify that AA−1 = I
9. Cramer’s Rule
Example:

The system has a unique solution

if 1 − p # 0 —that is, if p # 1.
10. The general Leontief model
Chapter 6,7,8

Functions of one variable

and Derivatives in Use
Content

 Some rules for differentiation

 Application in Economics:
+ Marginal value
+ Elasticity
+ Single optimization
Simple rules for differentiation
Higher-order derivatives
Convex (Lồi) and Concave (Lõm)
Functions
Rate of change – Marginal Value
Kết luận tổng quát về marginal value
Starting at value variable, if variable name increase 1%,
function name will decrease (Value marginal < 0)/ increase
(Value marginal >0) by Value marginal
Elasticity
Kết luận tổng quát về Elasticity (độ co giãn)
A 1% increase in Variable name leads to an increase (El
>0)/ a decrease (El < 0) in function name of approximately
value of El
 Single optimization
TC or C : total cost or cost
TC = C = VC + FC
VC (variable cost – chi phí biến đổi)
FC (fixed cost – chi phí cố định)

MC (marginal cost - chi phí cận biên):

MC = (TC)’
π (profit):
π = TR – TC = R(Q) – C(Q)
R(Q)= Q*P(Q)

P(price), Q (quantity), C (cost)

TR (total revenue) = R (revenue)
The profits is at its maximum when
Chapter 11, 13

Functions of many variables and

Multivariable Optimization
Contents

- Partial derivatives
- Economic applications
+ Marginal functions
+ Partial Elasticities
+ Multivariable optimization
 Functions of Two Variables

A function f of two real variables, x and y, with domain D is a rule

that assigns a specified number f(x, y) to each point (x, y) in D
Partial Derivatives with Two Variables
(Đạo hàm từng phần với hai biến)
Higher-Order Partial Derivatives
Công thức
Partial Derivatives with More Variables
Marginal Functions
Partial Elasticities

The number Elxz is, approximately, the percentage change in z

caused by a 1% increase in x when y is held constant
Profit maximization

1. Two Choice Variables: Necessary Conditions

2. Two Choice Variables: Sufficient Conditions
The Lagrange Multiplier Method
The 30 units are produced in the cheapest way when the firm uses
100 units of capital and 20 units of labour. The associated cost is
K + 20L= 100 + 20x20 =500
Chapter 9:
Integration and
Economic Application
Contents

- Some rules of indefinite and definite integrals

- Economic applications
+ Finding original functions basing on marginal functions
+ Consumer surplus and producer surplus
Indefinite integral
Some Important Integrals
Some General Rules
Definite integral
Properties of Definite Integrals
Economic Application Finding original
functions basing on marginal functions
Economic Application Consumer and
Producer Surplus