I know that first, this function is Lipschitz if we have some $c>0, |f(x)-f(y)| = |\frac{1}{x}-\frac{1}{y}| = \frac{|x-y|}{|xy|} \leq \frac{1}{c^2}|x-y|$ making it Lipschitz at least on $(c, \infty)$ but how can I show if it is $(0, \infty)$, this is no longer true? It doesn't make intuitive sense to me because as long as $\frac{1}{c^2}$ where c is positive (i.e. $(0, \infty) > 0)$, the function should still be Lipschitz since our original function does not change.
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If $c$ gets arbitrary small, then your Lipschitz constant $\frac{1}{c^2}$ gets arbitrarily large. – Mansur Shakipov Nov 06 '21 at 01:44
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Ah yes that makes more sense. For some reason, I was stuck on the aspect that c is never quite 0. – TreausreDragon Nov 06 '21 at 01:45
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If $f$ was Lipschitz in $(0,\infty)$ then it would preserve Cauchy sequences. However, the Cauchy sequence $a_n=\frac{1}{n}$ is mapped by $f$ to the sequence $f(a_n)=n$, which is clearly not Cauchy.

Mark
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Solution #1. A continuous and differentiable function is Lipshitz iff it has bounded derivative. But differentiating $\frac{1}{x}$ gives $-\frac{1}{x^2}$, which is clearly unbounded in $(0,\infty)$.
Solution #2. Suppose it is Lipshcitz. As you have written we have $|f(x) - f(y)| = \frac{|x - y|}{|xy|} \leq M|x - y|$ for some $M > 0$. This implies that for all $x,y > 0$ such that $x \neq y$, we have $\frac{1}{|xy|} \leq M$, but this is clearly false as we can let, for instance, $x = \frac{1}{\sqrt{M}}$ and $y = \frac{1}{2\sqrt{M}}$.

Clement Yung
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It's a very helpful response but we have not learned about this part yet. Is there a different way to prove so? Edit: Oh wait we are allowed to use Calculus – TreausreDragon Nov 06 '21 at 01:42
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Thank you! That is more akin to our understanding of Lipschitz so far! – TreausreDragon Nov 06 '21 at 01:47