ECON6067

Computation and Analysis of Economic Data

1. Limits, Continuity and Derivatives

Karen Xiaoting Mai

Fall 2022
1.1 Limits
Limit of A Function

I Given f (x), what value does f (x) approach as x approaches a

specific value x0 ?
I If as x → x0 from the left side, f (x) approaches a finite
number L1 , we call L1 the left-side limit of f , denoted by

lim f (x) = L1
x→x0−

I Similarly, if as x → x0 from the right side, f (x) approaches a

finite number L2 , we call L2 the right-side limit of f , denoted
by
lim+ f (x) = L2
x→x0
1.1 Limits
Limit of A Function

I When and only when the two limits have a common finite
value (L1 = L2 ≡ L, |L| < ∞), we say the limit of f (x) exists
and write it as
lim f (x) = L
x→x0

I Note:
I x0 is excluded from consideration in discussing the limit.
I If consider the limit of f as x → +∞ (or x → −∞), only the
left-side (right-side) limit is relevant.
1.1 Limits
Evaluation of a Limit

I Example: Find the limit

lim x 2 + 1
x→0
1.1 Limits
Evaluation of a Limit

I Example: Find the limit

lim x 2 + 1
x→0

I In general, resist the temptation to set x = 0

I Left-side limit: consider when x takes the series of negative
1 1 1
values −1, − 10 , − 100 , − 1000 ,...
I Right-side limit: consider when x takes the series of negative
1 1 1
values 1, 10 , 100 , 1000 ,...
I In both cases x 2 + 1 approaches 1.
1.1 Limits
Evaluation of a Limit: Indeterminate Form “0/0”

I Example: Find the limit

1 − x2
lim
x→1 1 − x
1.1 Limits
Evaluation of a Limit: Indeterminate Form “0/0”

I Example: Find the limit

1 − x2
lim
x→1 1 − x

I Note
1 − x2
=1+x
1−x
1.1 Limits
Evaluation of a Limit: Indeterminate Form “∞/∞”

I Example: Find the limit

3x + 2
lim
x→∞ x +1
1.1 Limits
Evaluation of a Limit: Indeterminate Form “∞/∞”

I Example: Find the limit

3x + 2
lim
x→∞ x +1

I Note
3x + 2 3 (x + 1) − 1 1
= =3−
x +1 x +1 x +1
I More on limits of indeterminate forms after we introduce
derivatives
1.1 Limits
Limit Theorems

I Theorems involving a single function

I If limx→x0 f (x) exists
1. limx→x0 c = c.
2. limx→x0 [af (x) + b] = a limx→x0 f (x) + b.
k k
3. limx→x0 [f (x)] = [limx→x0 f (x)] .
1.1 Limits
Limit Theorems

I Theorems involving two functions

I If we have two functions of the same independent variable x,
f (x) and g (x), and the limits of both functions exists,

lim f (x) = L1 , lim g (x) = L2

x→x0 x→x0

where L1 and L2 are finite, the following theorems apply

1. (Sum-Difference Limit Theorem)
limx→x0 [f (x) ± g (x)] = L1 ± L2
2. (Product Limit Theorem) limx→x0 [f (x) g (x)] = L1 L2
3. (Quotient Limit Theorem) limx→x0 [f (x) /g (x)] = L1 /L2
(L2 6= 0)
1.1 Limits
Limit Theorems

I Example: Find the limit

x 2 + 3x − 1
lim
x→1 x +3
1.1 Limits
Limit Theorems

I Example: Find the limit

x 2 + 3x − 1
lim
x→1 x +3

I Combining different theorems,

limx→1 x 2 + 3x − 1


x 2 + 3x − 1
lim =
x→1 x +3 limx→1 (x + 3)
limx→1 x 2 + 3 limx→1 x − 1
=
limx→1 x + 3
12 + 3 · 1 − 1 3
= =
1+3 4
1.1 Limits
Limit Theorems

I Example: Limit of a Polynomial Function. Given any

polynomial function

f (x) = a0 + a1 x + a2 x 2 + · · · + an x n

the limit is

lim f (x) = a0 + a1 x0 + a2 x02 + · · · + an x0n

x→x0
1.2 Continuity
Definition

I When a function y = f (x) satisfies

lim f (x) = f (x0 )

x→x0

f (x) is said to be continuous at x = x0 .

1.2 Continuity
Definition

I When a function y = f (x) satisfies

lim f (x) = f (x0 )

x→x0

f (x) is said to be continuous at x = x0 .

I Note: continuity involves

1. x0 must be in the domain of f (x): i.e., f (x0 ) is defined
2. f (x) must have a limit as x → x0
3. limx→x0 f (x) must be equal in value to f (x0 )
I Note: the continuity of a function at point x0 does not
necessarily imply that the graph of the function is “smooth” at
x0
I If the function is continuous at all points in its domain, we say
it is continuous in its domain.
1.2 Continuity
Polynomial and Rational Functions

I Any polynomial function is continuous in its domain.

I Any rational function (a quotient of two polynomial functions)
must also be continuous in its domain.

I Exercise: Show that the rational function

3x 2
f (x) =
2x 2 + 1
is continuous in its domain.
1.3 Derivatives
Importance

I “Rate of change”
I Total function (primitive function) vs. marginal function
(derivative function)
e.g., marginal utility, maginal cost, marginal product...
I Elasticity
I Growth rates in continuous time
I Optimization
I Comparative statics
I ...
1.3 Derivatives
One-Dimensional Derivative

I Given a function of one variable y = f (x), the change in y per

unit of change in x from an initial value xo can be represented
by the difference quotient

∆y f (x0 + ∆x) − f (x0 )

=
∆x ∆x
1.3 Derivatives
One-Dimensional Derivative

I Given a function of one variable y = f (x), the change in y per

unit of change in x from an initial value xo can be represented
by the difference quotient

∆y f (x0 + ∆x) − f (x0 )

=
∆x ∆x

I Given a function f : R → R, its derivative at a point x0 is

defined by
dy ∆y
≡ f 0 (x) ≡ lim
dx ∆x→0 ∆x

if that limit exists. We say f is differentiable at x0 if that limit

exists.
1.3 Derivatives
One-Dimensional Derivative
I Exercise: Given y = 6x 2 + x
1. Find the difference quotient as a function of x and ∆x.
2. Find the derivative dy /dx.
3. Find f 0 (2).
1.3 Derivatives
One-Dimensional Derivative
I Exercise: Given y = 6x 2 + x
1. Find the difference quotient as a function of x and ∆x.
2. Find the derivative dy /dx.
3. Find f 0 (2).
I Difference quotient
∆y 6 (x + ∆x)2 + (x + ∆x) − 6x 2 − x
= = 6 (2x + ∆x) + 1
∆x ∆x
1.3 Derivatives
One-Dimensional Derivative
I Exercise: Given y = 6x 2 + x
1. Find the difference quotient as a function of x and ∆x.
2. Find the derivative dy /dx.
3. Find f 0 (2).
I Difference quotient
∆y 6 (x + ∆x)2 + (x + ∆x) − 6x 2 − x
= = 6 (2x + ∆x) + 1
∆x ∆x

I Derivative
dy ∆y
≡ f 0 (x) ≡ lim = 12x + 1
dx ∆x→0 ∆x
1.3 Derivatives
One-Dimensional Derivative
I Exercise: Given y = 6x 2 + x
1. Find the difference quotient as a function of x and ∆x.
2. Find the derivative dy /dx.
3. Find f 0 (2).
I Difference quotient
∆y 6 (x + ∆x)2 + (x + ∆x) − 6x 2 − x
= = 6 (2x + ∆x) + 1
∆x ∆x

I Derivative
dy ∆y
≡ f 0 (x) ≡ lim = 12x + 1
dx ∆x→0 ∆x

I And 
0 dy 
f (2) ≡ = 25
dx x=2
1.3 Derivatives
Limits, Continuity and Differentiability
I Continuity of f is a necessary condition for its differentiability. That
is to prove
lim f (x) = f (x0 )
x→x0

follows from
f (x0 + ∆x) − f (x0 )
f 0 (x0 ) = lim
∆x→0 ∆x
1.3 Derivatives
Limits, Continuity and Differentiability
I Continuity of f is a necessary condition for its differentiability. That
is to prove
lim f (x) = f (x0 )
x→x0

follows from
f (x0 + ∆x) − f (x0 )
f 0 (x0 ) = lim
∆x→0 ∆x

I Proof: Note that

f (x0 + ∆x) − f (x0 ) f (x) − f (x0 )
lim = lim
∆x→0 ∆x x→x 0 x − x0
f (x) − f (x0 )
f (x) − f (x0 ) ≡ (x − x0 )
x − x0
1.3 Derivatives
Limits, Continuity and Differentiability
I Continuity of f is a necessary condition for its differentiability. That
is to prove
lim f (x) = f (x0 )
x→x0

follows from
f (x0 + ∆x) − f (x0 )
f 0 (x0 ) = lim
∆x→0 ∆x

I Proof: Note that

f (x0 + ∆x) − f (x0 ) f (x) − f (x0 )
lim = lim
∆x→0 ∆x x→x 0 x − x0
f (x) − f (x0 )
f (x) − f (x0 ) ≡ (x − x0 )
x − x0

I Taking the limit of each side as x → x0 yields

f (x) − f (x0 )
lim f (x) − f (x0 ) = lim lim (x − x0 ) = 0
x→x0 x→x0 x − x0 x→x0
1.3 Derivatives
Continuouly Differentiable Function

I “Nonsmoothness” of a total (primitive) function will result in a

gap (discontinuity) in the marginal (derivative) function.
I The smoothness of a primitive function can be linked to the
continuity of its derivative function.
1.3 Derivatives
Continuouly Differentiable Function

I “Nonsmoothness” of a total (primitive) function will result in a

gap (discontinuity) in the marginal (derivative) function.
I The smoothness of a primitive function can be linked to the
continuity of its derivative function.
I A function with a continuous derivative function is called a
continuously differentiable function.
I Notation
I f ∈ C (0) or f ∈ C f is continuous
I f ∈ C (1) or f ∈ C ’ f is continuously differentiable
1.3 Derivatives
Rules of Differentiation

I Rules for a function of one variable

d
1. (Constant Rule) dx c =0
d
2. (Constant Multiple Rule) dx (cf (x)) = cf 0 (x)
d n n−1
3. (Power Rule) dx x = nx , valid for any real-valued power
of x
1.3 Derivatives
Rules of Differentiation

I Example: Find the derivative of

√
f (x) = x

I Example: Find the derivative of

f (x) = x −4
1.3 Derivatives
Rules of Differentiation

I Rules involving two or more functions of the same

variable
I Consider two differentiable functions of the same variable x,
f (x) and g (x).
1. (Sum-Difference Rule)

d d d
[f (x) ± g (x)] = f (x) ± g (x) = f 0 (x) ± g 0 (x)
dx dx dx
2. (Product Rule)

d d d
[f (x) g (x)] = f (x) g (x) + f (x) g (x)
dx dx dx
= f 0 (x) g (x) + f (x) g 0 (x)
1.3 Derivatives
Rules of Differentiation

I Example: Find the derivative of f (x) = 2x(3x 2 + x + 6)

1.3 Derivatives
Rules of Differentiation

I Example: Find the derivative of f (x) = 2x(3x 2 + x + 6)

d 
2x(3x 2 + x + 6) = 2 3x 2 + x + 6 + 2x (6x + 1)


dx
= 18x 2 + 4x + 12
1.3 Derivatives
Rules of Differentiation

I Extension to three or more functions

d
[f (x) g (x) h (x)] = f 0 (x) [g (x) h (x)] + f (x) [g (x) h (x)]0
dx
= f 0 (x) g (x) h (x) + f (x) g 0 (x) h (x)
+f (x) g (x) h0 (x)
1.3 Derivatives
Rules of Differentiation
I Example: (Finding marginal-revenue function from
average-revenue function)
If we are given an average-revenue (AR) function

AR = f (Q)

Find the marignal revenue function.

1.3 Derivatives
Rules of Differentiation
I Example: (Finding marginal-revenue function from
average-revenue function)
If we are given an average-revenue (AR) function

AR = f (Q)

Find the marignal revenue function.

I Total-revenue function

R≡ AR·Q = f (Q) · Q

Differentiating R to get marignal revenue

MR≡f 0 (Q) · Q + f (Q) · 1 = Qf 0 (Q) + f (Q)

Rearranging terms gives

MR − AR = Qf 0 (Q)
1.3 Derivatives
Rules of Differentiation

I Exercise: Show the Power-Function Rule

d n
x = nx n−1
dx
holds when n is a positive integer.
1.3 Derivatives
Rules of Differentiation

I Exercise: Show the Power-Function Rule

d n
x = nx n−1
dx
holds when n is a positive integer.
I (By induction)
d
I When n = 1, dx (x) = 1
I When n = 2, x 2 = x · x. By product rule,
d
dx (x · x) = x + x = 2x
3 2
When n =
3, x = x · 2x. By 2product rule,
I
d 2
dx x · x = 2x · x + x = 3x
...
1.3 Derivatives
Rules of Differentiation

I Rules involving two or more functions of the same

variable (cont’d)
3. (Quotient Rule)

f (x) 0 f 0 (x) g (x) − f (x) g 0 (x)

 
d f (x)
= =
dx g (x) g (x) [g (x)]2
1.3 Derivatives
Rules of Differentiation

I Example:

ax 2 + b
 
d
dx cx
1.3 Derivatives
Rules of Differentiation

I Example:

2ax (cx) − ax 2 + b · c


ax 2 + b
 
d
=
dx cx (cx)2
c 2ax 2 − ax 2 − b


=
(cx)2
ax 2 − b
=
cx 2
1.3 Derivatives
Rules of Differentiation

I Example: (Relationship between marginal-cost and

average-cost functions)
Given total-cost function C (Q), the average-cost function
AC≡C (Q) /Q, Q > 0. The rate of change of AC with
respect to Q

C 0 (Q) Q − C (Q)
 
d C (Q) 1 0 C (Q)
= = C (Q) −
dQ Q Q2 Q Q

> >
d C (Q) 0 C (Q)
Therefore = 0 if C (Q) = Q
dQ Q
< <
1.3 Derivatives
Rules of Differentiation

I Example: (Relationship between marginal-cost and

average-cost functions)
Given total-cost function C (Q), the average-cost function
AC≡C (Q) /Q, Q > 0. The rate of change of AC with
respect to Q

C 0 (Q) Q − C (Q)
 
d C (Q) 1 0 C (Q)
= = C (Q) −
dQ Q Q2 Q Q

> >
d C (Q)
Therefore = 0 if C (Q) = C (Q)
0
Q
dQ Q
< <
I The slope of the AC curve will be positive, zero, or negative if
and only if the marginal-cost curve lies above, intersects, or
lies below the AC curve.
1.3 Derivatives
Rules of Differentiation

I Exercise: Differentiate the following

1. (6x + 2)
(1 − 2x) (3x + 1) (x − 1)
2. x 3 − 2 x −2
1.3 Derivatives
Rules of Differentiation

I Rules involving functions of different variables

1. (Chain Rule) If functions z = f (y ) and y = g (x) are
differentiable,
dz dz dy
= = f 0 (y ) g 0 (x)
dx dy dx

I Also called “composite-function rule” since z = f [g (x)].

I Intuition
I Extension to three or more functions. If z = f (y ), y = g (x),
x = h (w )

dz dz dy dx
= = f 0 (y ) g 0 (x) h0 (w )
dw dy dx dw
1.3 Derivatives
Rules of Differentiation

I Example: If z = 3 (6x + 5)10 , find dz

dx .
1.3 Derivatives
Rules of Differentiation

I Example: If z = 3 (6x + 5)10 , find dz

dx .

dz
= 30 (6x + 5)9 · 6 = 180 (6x + 5)9
dx
1.3 Derivatives
Rules of Differentiation

I Rules involving functions of different variables (cont’d)

2. (Inverse-Function Rule) If the function y = f (x)
represents a one-to-one mapping, the function will have an
inverse function x = f −1 (y ), and

dx 1
=
dy dy /dx

I Note:
I The property of one-to-one mapping is seen to be unique to
the strictly monotonic functions.
I The derivative of the inverse function is the reciprocal of the
derivative of the original function.
I dx/dy has the same sign as dy /dx.
1.3 Derivatives
Rules of Differentiation

I Example: y = 2x + 6. dy /dx = 2. Find the derivative of the

inverse function.
1.3 Derivatives
Rules of Differentiation

I Example: y = 2x + 6. dy /dx = 2. Find the derivative of the

inverse function.
I Can directly solve for x
1
x = y −3
2
So dx/dy = 1/2.
1.3 Derivatives
Rules of Differentiation

I Example: y = 2x + 6. dy /dx = 2. Find the derivative of the

inverse function.
I Can directly solve for x
1
x = y −3
2
So dx/dy = 1/2.
I Note:
Sometimes the inverse function is difficult to express explicitly.
Then the inverse-function rule becomes particularly useful.
1.3 Derivatives
Rules of Differentiation

I Example: Given y = x 9 + x, find dx/dy .

1.3 Derivatives
Rules of Differentiation

I Example: Given y = x 9 + x, find dx/dy .

I Since
dy
= 9x 8 + 1 > 0
dx
for all x, an inverse function exists.
dx 1 1
= = 8
dy dy /dx 9x + 1
1.3 Derivatives
Rules of Differentiation

I Example: Given y = x 9 + x, find dx/dy .

I Since
dy
= 9x 8 + 1 > 0
dx
for all x, an inverse function exists.
dx 1 1
= = 8
dy dy /dx 9x + 1

I Note:
when dealing with a U-shaped curve (not strictly monotonic),
we may treat the downward- and the upward-sloping segments
of the curve as two separate functions...
1.3 Derivatives
Rules of Differentiation

Involving Rule Primitive Derivative

function function

Constant Rule c 0
A function of
Constant Multiple Rule cf (x) cf 0 (x)
one variable
Power Rule xn nx n−1
Two or more Sum-Difference Rule f (x) ± g (x) f 0 (x) ± g 0 (x)
functions of the Product Rule f (x) g (x) f0 (x) g (x) + f (x) g 0 (x)
f (x) f 0 (x)g (x)−f (x)g 0 (x)
same variable Quotient Rule
g (x) [g (x)]2
Functions of diff Chain Rule f (g (x)) f 0 (g (x)) g 0 (x)
1
variables Inverse-Function Rule f −1 (y ) f 0 (x)
1.3 Derivatives
Rules of Differentiation

Rule Primitive Derivative

function function

ax ax ln a
Exponential
ex ex
1
loga x x ln a
Logarithm 1
ln x x
sin x cos x
cos x − sin x
tan x sec2 x
Trigonometric cot x − csc2 x
sec x sec x · tan x
csc x − csc x · cot x
··· ...
1.3 Derivatives
Partial Differentiation

I So far only derivatives of functions of a single independent

variable.
I Consider
y = f (x1, x2, . . . , xn )
where xi (i = 1, 2, . . . , n) are all independent of one another.
1.3 Derivatives
Partial Differentiation

I So far only derivatives of functions of a single independent

variable.
I Consider
y = f (x1, x2, . . . , xn )
where xi (i = 1, 2, . . . , n) are all independent of one another.
I If there is a change ∆xl in xl while other independent variables
remain fixed, the difference quotient

∆y f (x1, . . . , xl + ∆xl , . . . , xn ) − f (x1, . . . , xl, . . . , xn )

=
∆xl ∆xl
∆y
If lim exists, we call it the partial derivative of y with
∆xl →0 ∆xl
respect to xl .
∂y ∆y
fl ≡ ≡ lim
∂xl ∆xl →0 ∆xl
1.3 Derivatives
Partial Differentiation

Comparison of symbols

derivatives partial derivatives

primitive function f (x) f (x1, . . . , xn ) or f (u, v , w )
d ∂ ∂
operator symbol dx ∂xi or ∂u , . . .
0
f (x) fi or fu , . . .
1.3 Derivatives
Partial Differentiation

I Techniques of partial differentiation: hold (n − 1) independent

variables constant while allowing one variable to vary.
I Example: Given y = f (x1 , x2 ) = 4x12 + 3x1 x2 + x22 . Find the
partial derivatives.
1.3 Derivatives
Partial Differentiation

I Techniques of partial differentiation: hold (n − 1) independent

variables constant while allowing one variable to vary.
I Example: Given y = f (x1 , x2 ) = 4x12 + 3x1 x2 + x22 . Find the
partial derivatives.

∂y
= 8x1 + 3x2
∂x1
∂y
= 3x1 + 2x2
∂x2
1.3 Derivatives
Partial Differentiation

Exercise: Given f (x1 , x2 ) = x12 − 2x1 x2 + 3x22 (x1 + 1).

I
Find the partial derivatives. What values will the partial
derivatives take for point (x1 , x2 ) = (1, 2)?
1.3 Derivatives
Partial Differentiation

Exercise: Given f (x1 , x2 ) = x12 − 2x1 x2 + 3x22 (x1 + 1).

I
Find the partial derivatives. What values will the partial
derivatives take for point (x1 , x2 ) = (1, 2)?

f1 = (2x1 − 2x2 ) (x1 + 1) + x12 − 2x1 x2 + 3x22 · 1 = . . .

f2 = (−2x1 + 6x2 ) (x1 + 1) + x12 − 2x1 x2 + 3x22 · 0 = . . .

Plugging in (x1 , x2 ) = (1, 2) ...

1.3 Derivatives
Partial Differentiation

I Example: Marginal product. Assume total output is Y = F (K , L).

∂F (K , L)
Marginal product is the partial derivative, e.g,. MPK =
∂K

Figure: Chiang and Wainwright, p.168

1.3 Derivatives
Partial Differentiation

I Example: Marginal product. Assume total output is Y = F (K , L).

∂F (K , L)
Marginal product is the partial derivative, e.g,. MPK =
∂K

Figure: Chiang and Wainwright, p.168

I If we assume constant returns to scale

∂F (K , L) ∂F (K /L, 1) df (k)
MPK = = =
∂K ∂K /L dk
1.3 Derivatives
Partial Differentiation
I Example: Marginal product (cont’d). Assume is
Y = F (K , L)
If we multiply the quantities of each input by some factor, the
quantity of output will increase by the same factor
F (zK , zL) = zF (K , L)
We say the function features constant return to scale. Then
   
1 1 K L K
Y = F (K , L) = F , =F ,1
L L L L L
Defining k = K /L, y = Y /L,
y = F (k, 1) = f (k)
Output per worker is a function only of capital per worker.
1.3 Derivatives
Partial Differentiation
I Example: Marginal product (cont’d). Assume is
Y = F (K , L)
If we multiply the quantities of each input by some factor, the
quantity of output will increase by the same factor
F (zK , zL) = zF (K , L)
We say the function features constant return to scale. Then
   
1 1 K L K
Y = F (K , L) = F , =F ,1
L L L L L
Defining k = K /L, y = Y /L,
y = F (k, 1) = f (k)
Output per worker is a function only of capital per worker.

I Exercise: Show that Cobb-Douglas production function

F (K , L) = AK α L1−α
features constant return to scale.
1.3 Derivatives
Gradient Vector

I The gradient vector (or simply gradient) of function f

∇f (x1 , . . . , xn ) = (f1 , . . . , fn )

I Example: The gradient of the production function

Y = F (K , L) is

∇F (K , L) = (FK , FL )
1.3 Derivatives
Gradient Vector

I Exercise: Find the gradient of

f (x1, x2 , x3 ) = x13 + 2x23 + 6x32 + x1 x2 x3 .
1.3 Derivatives
Application: Finding Limits of Indeterminate Forms

I Finding the limit of “indeterminate forms” such as 0/0 and

∞/∞.
I L’Hôpital’s Rule
Assume
(i) limx→x0 f (x) = limx→x0 g (x) = 0, or both f (x) and g (x)
tend to ±∞ as x → x0
f 0 (x)
(ii) lim 0 =L
x→x0 g (x)

.
Then we have
f (x) f 0 (x)
lim = lim 0 = L.
x→x0 g (x) x→x0 g (x)
.
1.3 Derivatives
Application: Finding Limits of Indeterminate Forms

I Example: Consider the limit

sin x
lim
x→0 x

which is of the form “0/0”.

1.3 Derivatives
Application: Finding Limits of Indeterminate Forms

I Example: Consider the limit

sin x
lim
x→0 x

which is of the form “0/0”.

I By L’Hôspital’s Rule
sin x cos x
lim = lim =1
x→0 x x→0 1
1.3 Derivatives
Application: Finding Limits of Indeterminate Forms

I Example: Consider the limit

sin x
lim
x→0 x

which is of the form “0/0”.

I By L’Hôspital’s Rule
sin x cos x
lim = lim =1
x→0 x x→0 1

I Sometimes we have to apply L’Hospital’s Rule a few times

before we can evaluate the limit directly.
1.3 Derivatives
Application: Finding Limits of Indeterminate Forms
I Exercise: Consider the limit
x − sin x
lim
x→0 x3
By L’Hôspital’s Rule
x − sin x 1 − cos x
lim 3
= lim
x→0 x x→0 3x 2
if the right hand side exists. The right hand side is again “0/0”.
Applying L’Hôspital’s Rule again
1 − cos x sin x
lim = lim
x→0 3x 2 x→0 6x

if the right hand side exists. But the right hand side
sin x 1 sin x 1
lim = lim =
x→0 6x 6 x→0 x 6
Therefore, the original limit exists and
x − sin x 1
lim =
x→0 x3 6