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# Integration

Course Manual
Indefinite Integration 7.1-7.2
Definite Integration 7.3-7.4
Jacques (3rd Edition)
Indefinite Integration 6.1
Definite Integration 6.2

y = F (x) = xn + c

## Given the derivative f(x), what is

F(x) ? (Integral, Anti-derivative
or the Primitive function).
Just as f(x) = derivative of F(x)

F ( x) f ( x ) dx

Example

F ( x) 3x dx x 3 c
2

## c=constant of integration (since derivative of c=0)

of course, c may be =0.., but it may not

## check: if y=x3 + c then dy/dx = 3x2

or if c=0, so y=x3 then dy/dx = 3x2

## How did we integrate f(x)?

Rule 1 of Integration:
1
F ( x ) x n dx x n 1 c
n 1

Examples
1 3
F ( x ) x 2 dx x c
3

## check: if y = 1/3 x3 + c then dy/dx = x2

0
F( x ) dx 1.dx x dx x c

## check: if y = x + c then dy/dx = 1

Rule 2 of Integration:

F ( x) af ( x)dx a f ( x)dx
Examples
1
F ( x ) 3 x 2 dx 3 x 2 dx 3. .x 3 c x 3 c
3

F ( x ) a .dx a dx ax c

F ( x ) 4dx 4 dx 4 x c
Rule 3 of Integration:

F ( x) f ( x) g ( x) dx f ( x ) dx g ( x)dx

Example
F ( x) 3 x
2 x dx 3x dx 2 x dx x x2 c
2 2 3
Calculating Marginal Functions

## Given MR and MC use integration

to find TR and TC
TR Q MR Q .dQ
Marginal Cost Function
Given the Marginal Cost Function, derive
an expression for Total Cost?

MC = f (Q) = a + bQ + cQ2

TC ( Q ) 2
a bQ cQ dQ

TC ( Q ) a dQ b Q dQ c Q 2 dQ

b 2 c 3
TC ( Q ) aQ Q Q F
2 3

## F = the constant of integration

If Q=0, then TC=F
F= Fixed Cost..
Another Example

MC = f (Q) = Q + 5
If Total Cost = 20 when production
is 0, find TC function?

TC ( Q ) Q 5 dQ

TC ( Q ) Q dQ 5 dQ

1 2
TC( Q ) Q 5Q F
2

## F = the constant of integration

If Q=0, then TC = F = Fixed Cost
So if TC = 20 then, TC( Q )
1 2
2
Q 5Q 20
Another Example
Given Marginal Revenue, find the
Total Revenue function

MR = f (Q) = 20 2Q
TR( Q ) 20 2Q dQ

TR( Q ) 20 dQ 2 QdQ

TR( Q ) 20Q Q 2 c

## c = the constant of integration

Example:
Given MC=2Q2 6Q + 6; MR = 22 2Q;
and Fixed Cost =0. Find total profit for profit
maximising firm when MR=MC?

Solution:
1) Find profit max output Q where MR = MC
MR=MC
so 22 2Q = 2Q2 6Q + 6
gives Q2 2Q 8 = 0
(Q - 4)(Q + 8) = 0 so Q = +4 or Q =-2
Q = +4

2) Find TR and TC
TR( Q ) 22 2Q dQ

TR( Q ) 22 dQ 2 QdQ

TR( Q ) 22Q Q 2 c

so TR = 22Q Q2

MC = f (Q) = 2Q2 6Q + 6
TC ( Q ) 2
2Q 6Q 6 dQ
TC ( Q ) 2 Q 2 dQ 6 QdQ 6 dQ

2 3
TC( Q ) Q 3Q 2 6Q F
3

## F = Fixed Cost = 0 (from question) so.

2 3
TC( Q ) Q 3Q 2 6Q
3

## 3. Find profit = TR-TC, by substituting in

value of q* when MR = MC

Profit = TR TC
TR if q*=4: 22(4) - 42 = 88-16 = 72
TC if q* =4: 2/3 (4)3 3(4)2 + 6(4) = 2/3(64)
48 + 24 = 182/3
Total profit when producing at MR=MC so
q*=4 is
TR TC = 72 - 182/3 = 53 1/3
NOTE:
Given a MR and MC curves
- can find profit maximising output q* where
MR = MC
- can find TR and TC by integrating MR
and MC
- substitute in value q* into TR and TC to
find a value for TR and TC. then..
- since profit = TR TC

## Can find (i) profit if given value for F or (ii)

F if given value for profit
Definite Integration
The definite integral of f(x) between
values a and b is:
b
F ( x) ba f ( x)dx F (b) F (a)
a

Example
2 2
1 3 1 1 7
x dx ( 2) 3 (1) 3
2
x
1 3 1 3 3 3

3dx 3x
6
2 3(6) 3(2) 12
2
b

can be
f ( x )dx

## interpreted as the area bounded by the

graph of f(x), the x-axis, and vertical
lines x=a and x=b
f(x)

a b x
The Consumer Surplus
Difference between value to consumers
and to the market.
P
x Demand Curve:
P = f(Q)

Consumer Surplus
a
P1

0 Q1 Q

## CS(Q) = oQ1ax - oQ1aP1

Q1

CS (Q ) D(Q)dQ P Q
0
1 1

Producer Surplus
Difference between market value and total
cost to producers
P
Supply Curve:
P = g(Q)

P1 a
Producer Surplus
y

0 Q1 Q

## PS(Q) = oQ1aP1 - oQ1ay

Q1
PS ( Q ) P1Q1 S ( Q )dQ
0

examples..
Find a measure of consumer surplus
at Q = 5,
for the demand function p = 30 4Q
Solution
If Q = 5, then p = 30 4(5) = 10
Q1

CS (Q ) D(Q)dQ P Q
0
1 1

P
30 Demand Curve:
P = f(Q) = 30 4Q

Consumer Surplus
P1=10

0 Q1 = 5 7.5 Q

## Entire area under demand curve between 0

and Q1 = 5:
5

( 30 4Q )dQ 30Q 2Q
2

5
0
0
30( 5 ) 2( 25 ) 0 100
total revenue = area under price line
(p1 = 10), between Q = 0 and Q1 = 5 is
p1Q1

Example 2:

## If p = 3 + Q2 is the supply curve, find a

measure of producer surplus at Q = 4

Solution
If Q = 4, then p = 3 + 16 = 19
Q1
PS ( Q ) P1Q1 S ( Q )dQ
0

P
Supply Curve:
P = g(Q) = 3 + Q2

P1 = 19 Producer Surplus

0 Q1 = 4
Q
Entire area under supply curve between
Q = 0 and Q1 = 4..
4 4
2 1 3
( 3 Q )dQ 3Q 3 Q
0 0
1
3( 4 ) ( 4 )3 0 33 13
3

## total revenue = area under price line

(p1 = 19), between Q = 0 and Q1 = 4 is
p1Q1 = 76

So PS = p1Q1 331/3 =
76 331/3 = 422/3
Manual, Topic 7
Q3. A profit maximising firm has MR 34 3Q

MC Q 2 10Q 26

## What level of fixed costs would make the

firm make zero profits?

## Step 1: set MR=MC and find output that

maximises profit, q*
Q 2 10Q 26 34 3Q

Q 2 7Q 8 0

formula
Q :
b b2 4 a c
2a

7 49 41 8 7 9
Q
21

2 so
Q 1

## Step 2: integrate MR and MC to find TR &

TC, and thus profits
TR TC

3
TR MR.dQ 34 3Q dQ 34Q 2 Q
2
c

## In this case, the constant of integration c 0 ,

since the firm makes no revenue when Q=0

TC MC .dQ Q 2 10Q 26 dQ
1 3
3
Q 5Q 2 26Q F

## F, the constant of integration = Fixed Costs

3 1
34Q Q 2 Q 3 5Q 2 26Q F
2 3
1 3 7 2
Q Q 8Q F
3 2

## Step 3: substitute in q* to TR and TC to get

profit max values when producing q*

Substituting in Q 8
for profit max.
1 3 7 2
8 8 8 8 170 2 224 64 117 1 F
3 2 3 3
Step 4: Set profit =0 (thus TR TC = 0), &
solve for F

## Setting 0 , gives 0 117 13 F

Thus, value of F at =0 is 1
F 117
3

## Q4 (b): A firm which has no fixed costs has

MC and MR given as follows:
MC=2Q2 6Q + 6;
MR = 22 2Q;
Find total profit for profit maximising firm
when MR=MC?

Solution:
1) Find profit max output Q where MR = MC
22 2Q = 2Q2 6Q + 6
gives Q2 2Q 8 = 0
Solve quadratic for Q, by using formula, or
(Q - 4)(Q + 8) = 0 so Q = +4 or Q =-2
so Q = +4 (since Q=-2 inadmissable)

2) Find TR and TC
TR( Q ) 22 2Q dQ

TR( Q ) 22 dQ 2 QdQ

TR( Q ) 22Q Q 2 c

## TR = c when Q=0; but TR = 0 when Q = 0; so

therefore c = 0

so TR = 22Q Q2

MC = f (Q) = 2Q2 6Q + 6
TC ( Q ) 2
2Q 6Q 6 dQ
TC ( Q ) 2 Q 2 dQ 6 QdQ 6 dQ

2 3
TC( Q ) Q 3Q 2 6Q F
3
F = Fixed Cost = 0 (from question) so.
2 3
TC( Q ) Q 3Q 2 6Q
3
3. Find profit = TR-TC, by substituting in
value of q* when MR = MC

Profit = TR TC
TR if q*=4: 22(4) - 42 = 88-16 = 72
2
TC if q* =4: /3 (4)3 3(4)2 + 6(4)
= 2/3(64) 48 + 24
= 182/3
so total profit when producing at MR=MC at
q*=4 is
TR TC = 72 - 182/3 = 53 1/3
Q5. The demand and supply functions for
a good are given by the equations P 2Q 14

PQ2

## equilibrium price and quantity and

calculate the consumer and producer
surplus at equilibrium.

At equilibrium
2Q 14 Q 2

3Q 12

So equilibrium Q* 4

Thus equilibrium P* 4 2 6

P CS
14 S

P*=6

PS 2 D

0 Q* = 4 7 Q

Consumer Surplus
Difference between value to consumers and
to the market. Area above price line and
under Demand curve

Q*
CS D Q dQ P * Q *
0

4
CS 2Q 14 dQ 6 4
0

CS Q 2 14Q 4
0 24

CS 4 14 4 0 14 0 24
2 2

CS 16 56 24 16
Producer Surplus
Difference between market value and total
cost to producers area below price line and
above Supply curve

PS P1Q1 0 S Q .dQ
Q1

PS 6 4 0 Q 2 dQ
4

4
1 2
PS 24 Q 2Q
2 0

1 1
PS 24 4 2 2 4 0 2 2 0
2 2

PS 24 8 8 8

Total Surplus = CS + PS = 16 + 8 = 24