11.

7 THE DEFINITE INTEGRAL

Let F() be any antiderivative off(r), then for any two values of the independent variable x, say
a and b, the difference F (b) F (a) is called the definite integral off(x) from a to band is
b

denoted by f () dr.Thus
b

f () dt = F (6) - F (a)
a

where F () is any antiderivative off(). The numbers a and b appearing with the integral sign
in Equation (1) are called the limits of integration; a is the lower limit and b is the upper

limit. Usually, F (b) F (a) is abbreviated by writing F () .

The reason for using the term definite integral" follows from the fact that the value of the
definite integral is independent of the particular choice of the antiderivative off (). For, it
F () +cis any other antiderivative off(c), then
b
|f) de = F() + cl = [F (6) + c]-[F (a) +c] =F (6) - F(a)
a
a

which is same as before.

 Example 32. Find the following definite integrals:
2
1
() (ii) dx (ii)
1
3x + 2
3 2
dx
(iv) (v) (vi) fer-)de
3
2 2
Solution. () x dt |= (2)? (² 3
2 2 2

(i1) dx = log (3x +2)log [3(1) +2] log 3 (0) +2]

3x +2 3 3 3

[log S- log 2]=log(5/2)

=

2 0 2 2 2
0

(1+**}2 1
1+4
dx =
0
4x d - 2

(1+x)/2 -2-)
2 2 2
2
4 (since log l - 0)
-dx = 4logx |= 44log 8 4log1 = 4log 8

3
e
12.1 INTRODUCTION

Integration has a wide range of applications to a very large number of disciplines such as
business and economics (marginal analysis, maximizing profit, consumer's surplus), biology
(bacterial growth), geometry (finding the area under a curve), and to probability. In this
chapter we shall discuss some of these applications.
12.2 APPLICATION TO MARGINAL ANALYSIS

In this section we investigate some of the applications of integration to marginal analysis. The
first such application is that of finding the cost function when marginal cost function is given.
12.2.1 To find the cost function and the average cost function from a given marginal
cost function.
Since the marginal cost function MC is the derivative of the cost function C, therefore by
definition Cis an antiderivative of MC. That is,
C=MC x + k,
where k is the constant of integration. However, if we are also given the fixed costs (i.e.,
12.2 Business Mathematics
costs involved when x= 0) or the cost of production of a specific numberof units ofia
commodity, we can determine the value of the constant of integration and thus fnd st
particular cost function C. Once C is obtained, the average costfunction can be obtained t
using the equation
AC C

Example1. The marginal cost function of afirm is given by MC = 3,000 e0.3 4 50. whers
x is quantity produced. If the fixed cost is Rs. 80,000, find the totalcost of the firm.
Solution. It is given that MC = 3,000e.5 + 50
Integrating with respect to x, we obtain
C= (3,000e3 + 50) dr
= 3,000. +50x +k (k is a constant)
0.3

= 10,000e0.3x 50x +k
It is also given that the fixed cost is 80,000, i.e., C = 80,000 when x = 0. Thus
80,000 = 10,000 e O) (0)+ 50 (0) + k k =70,000
Therefore the total cost function of the firm is given by
C= 10,000 e03* +50x + 70,000.
 Evample3. Assume that the marginal cost in lakhs of rupees is given by
3
MC = 4 + 5x +e
2
kore yis the quantity produced. Find the total cost of
production when x = 2, if fixed cost
is Rs. 6 lakhs.
Solution. The marginal cost is given to be
3
MC = 4+ 5x +-e
-X

2
Integrating, we obtain
3 5 3
--e+k
2 3 2

where kis the constant of integration. Since C=6, when x =0, therefore
3 15
6=-+k Or k=
2 2

15
Hence C= 4 x5+ r3- e t
3 2 2
vhich sYeS the cost of producing xunits. In particular, when x =2, we have
40 3.-2, 15 173 3-2
C= 8 + e 6 2
Applications ofIntegration
"T ind the total revenue function and the 12.7
12.2.2
marginal revenue function. demand function from a atsem
The marginal revenue MR is the derivative of the revenue function R. Therefore, to find R,
weintegrate the marginal revenue function. Thus
R
R =MR dt + k,
constant of integration to be determined by using the fact that R = 0, when x = 0.
where k is the
obtained, the corresponding demand function can be obtained by using the equation
Rx.
px=R, or p=
find the demand law.
remnle g Given MR=2- 6x, where MR denotes marginal revenue,
derivative of the revenue function R. we have
Solution. Since MR is the
= 2x-3x + k
R = (2- 6x) dr
integration. However, R=0, when x = 0. Therefore
where kis the constant of
0 = 0++ k ie., k = 0

The demand function is now obtained by using the equation

Thus R= 2x - 3x2.
p= Rx. Thus
2x-3r2 =2-3x
p =

sthe Tequired demand function.

demand law is
2.2.3 To find the maximum profit if marginal revenue and marginal cost
given
fP denotes the protit function, then
functions are
F
dP d dR dC
(R- C) = = MR- MC
de dx d A
Integrating both sides with respect to x gives
m
dP
P =| = (MR - MC) de +k,
where k is the constant of integration. However, if we are given an additional information.
such as fixed cost or loss at zero level of output, we can determine the constant k. Once P He
isknown, it can be maximized by using the concept of maxima and minima. Ex
Remark. There is an altenative method for finding the maximum profit that avoids using the MC
concept of maxima and minima. It uses the fact that maximum profit is obtained when per
"MR = MC". The maximum profit is then given by (iv)
Sol
Pmas =(MR MC) de, .(1)

where x, is obtained by solving MR = MC. Actually equation (1) gives the additional profit Integ
only. So loss at zero level of output must be subtracted from this for obtaining the actual wher
profit. wher
The following exanples will illustrate.
Example 14. Tl:e marginal cost C' (*) and the marginal revenue R' (x) are given by There
C' (x) 20+ and R' (x) =30
20 in) Si
The fixed cost is 200. Determine the maximum profit and the number of items producedfor this
profit. [BRA LP Unis 2007, 2009] (iüin) TH
Solution Let P denote the profit function, then T
dP dR dC 10 -
30 - 20
dx dx de
Integrating both sides with respect to x, we get
20 20
(iv) For
Applications ofIntegration
12.13
P - l10 20
10x
40
+ k

constant of integration. However, we are given that fixed

where k is the 0 cost is 200. That is,
P= - 200 when x = - 200 = k

P= 10x - 200 is the profit function.

Thus 40
dP
= 0, i.e., 10 =0
it is necessary that
’ x = 200
For P to be maximum,
20

Also
1 c0. Thus the output x = 200 indeed gives a maximum profit. The
dy? 20
maximum profit is given by
P =10(200) (200)2 - 200 = 800.
40
hience maximum profit is Rs. 800 which is obtained when 200 items are produced.
12.22 Business Mathematics
12.3 CONSUMERS' AND PRODUCERS' SURPLUS
Determining the area of a region has applications in economics. Figure 12.2 shows the
demand and supply curves for a product.
The intersection of a demand and supply curve is known as the equilibrium point. It is L.
point where market equilibrium is attained and occurs at the price where the quantity
demanded is equal to the quantity supplied.
Supply curve
p=S(r)

Equilibrium point

Po
demand curve
p=D()

Fig, 12.2
Let usassum e that the market is at equilibrim and the price per unit of the product isPy
According tothe demand curve, there are consumers who would be willing to pay more than
Po, These consumers will benefit bypaying the lower equilibrium price. The total of their
benefits is called the consumers' surplus (abbreviated CS)) and is represented by the rea
between the line p =P, and the demand curve p = D (*) from x = 0tox=,(see Fig
12.3), where x, is the market demand. Thus
0
CS =
P

CS

Po

Demand curve

Fig,12.3
 Applicattonsof.Integration 12.23
Consumers'Suplus .under Pure Competition : Under pure competition, the equilibrium demand x, is
abtainedbyeguating hedemand and supply fmctions. Once x, is obtatned, the corresponding market
obained'bysubstituting the value ofx, in
the. demand fnction or the supply
function
is
priep, Surplus.
Consumers under Monopoty: Under monopoly the quantity x isobtained byequating
maximize profit). The corresponding value ofp, is obtained by substituting
MC(soasto function.
MRand
x,inthe demand
the
value of
the supply curve, some of the producers also benefit from the equilibrium price,
According to
willing
the product at prices less than p. The total of their benefitsis
to supply(abbreviated
are
theyproducers surplus PS) andis represented by the area between the line
since
p=S() from x =0to x F x, (See Figure 12.4). Thus
calledthe the supply curve
and

PS = ) X Po -Jsa Supply curve

p=S«)

Po
PS

Fig. 12.4

commodity is given byp =100-&x. Find the consumers

Lample24. The demandfunction for a
Splus corresponding to the market price p=4. inthe demand
ofp,
=4. Substituting this. value
ution. The market price is given to be Po = 12. Therefore,
furcion p=100 8x, we get the market demandx,

CS =

12

- froo- 8x)dt - 12 x4
12

=(100x-4x)í-48
|
= 576
= [100(12)-4 (12)]-48
Onsumers' surplus is Rs. 576. s' surplus
Example 26. The supply curve for a commodity is
d 4 anuy 1S units.

Find the producer's surplus. Can you find the consumer's surplus? If yes, find it, if not explain
with the help of a diagram why not.
|BBAI.P. Uni. 2007
Substituting thisvalue in the
Solution.We are given that the quantity sold is 7 units, i.e.,x=7.
Therefore producer's surplus is
supply function p = /9+x, we get P, =4.
7

PS= 7x4-| /9 +x dt

28-(0+s)i
=

surplus
find consumer's surplus unless demand function is given, since consumers
We can not
area between the line p =p, and the demand curve p= D (x) from x=0
is represented by the
is the equilibrium point.
tox =, (See Figure 12.5), where ( P,)

CS

Po
Demand curve

Fig. 12.5
Avample36. The ve) sales
=6,000(!at-e
0S), purchase
where price of a car is =2,0 0
repaircost the end of 5
t

Solution. Since the rate of cost

Rs.
represents the yearsvear1s5.0of0.Tusehe
sin ce
(l-ey=
rate of cost Rs.
for 15 3,74.
the endfor
Cumulativerepair cost at the
of repai
5 rs is given by C:
rFiepnadirstheis given by C
purchase.
years is given by cumlatiye
=6,000
(6000 (1 - es)dt = 6,000 e0.5, |5

- 0.5
(1-es,
= 6,000|t+ 24-0s9
therefore the
6,000 (5 + 2e 25) -2] =
6,000 [3 +2 6,=000 (3 +2e 25)
Example 37.Currently a firm is
afchange of production PPwith manufrespect (0 .08208)] Rs. 18984.96.
acturintog 5,000 items per day. It is
additional number of estimatedxisthat the nterate
AP kl/2 1f the firm
employs 16 workers more, estimate the new
workers given by
level of production
JBBA LP Univ. 2008, 2009
dP
Solution. The rate of change of production is given by
=100-6x Integrating, we get
P = J100 - 6x)dx = 100x - 4retk,
he ~is aarbitrary constant. But P =5,000 when x=0, therefore 5,000 =k.
P= 100x 4x2 +5,000
When x=16, P = 100(16) 4 (16)32 + 5,000 = 6,344 items.