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Chapter 3

Managment

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Chapter 3

Managment

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hemagech21
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© © All Rights Reserved
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1

CHAPTER 3: ELEMENTS AND APPLICATIONS OF CALCULUS


3.1. Differential Calculus
3.1.1. Concepts

There are two core concepts which lie down the foundation for differential
calculus. These are: Limits and Continuity.

Limits
A function f has a limit L (where L is some real number) as x approaches a if
the values of the dependent variable f (x) differ arbitrarily little from L for all
values of X which lie very close to a. The limit as X approaches a is symbolized:
Lim f (x) = L
Xa
Note:
 The concept of the limit of a function as x approaches a should not be
confused with the concept of the values of a function at x = a
 The limit as x approaches a may exist, and the function many or may not be
defined at a.
 The function may be defined at a, and the limit may or may not exist.
 The limit as x approaches a may exist, and the function may be defined at a
and their values may, or may not be the same.
 Generally, x can approach a from either of two directions, through values
that are less than a or through values that are greater than a.
 The limit L must be a finite number.

The limit f (X) does not depend on the values of f (x) at X = a. Whether or not
the
Xa
function, f(x) is defined at x = a doesn’t affect the limit or its existence or non
existence at x = a.
In other words, lim f (x) = L means that the values of f (x) approach, without
xa
necessarily being equal to L, as X approaches, without necessary being equal
to a

Left-Hand and Right-Hand Limits


When the variable x approaches the value x=a but always remains less than a,
we say x is approaching a from the left. If the values of f(x) gets closer and
closer to a real number L as x approaches a from the left, we call L the LEFT-
HAND LIMIT and employ the symbolism Lim f(x) = L
Xa
Only those values of X to the left of a are used to compute the left hand limit.
E.g. Lim (x+3)
X3
We might compute f (2.9) = 5.9, f(2.99) = 5.99, -------------- f (2.999---) = 5.999
--------. Clearly, the values of f (X) are getting closer and closer to the number
6, and we write, L- = lim (x+3) = 6
X3
2

Similarly, the RIGHT-HAND LIMT of a function f as x approaches a is the value


L+, which f(X) converges on as x approaches the point X = a from the right, but
always, remains greater than a. We symbolize this limit as Lim f(x) = L +
xa+

Only those values of X to the right of a on the number line are used to obtain
the right - hand limit. We might compute the limit L + = lim (x+3) = 6 by
evaluating
x 3+\
f (3.1), = 6.1 f(3.01) = 6.01 f(3.001) = 6.001 ----, f (3.00001) = 6.000001.

A function f has a limit L as X approaches a only if the left - hand and the right-
hand limits are equal. Their common value is the limit of f as x approaches a
Here (L- = 6) = (L+ = 6) = L , and we write lim (x + 3) = 6
x3
Exercises
Find the limits for the following functions; if it exists
1. Lim (X2 - 1)
x2
X 1.91.991.9991.9999 0 2.00012.0012.01 2.1
F(x) 2.612.96012.9960012.999600013.00400013.004001 3.0401
- 3.41
L- =3 L+ =3
Lim (x - 1) = 3
2

x2

2. Lim x -0.1 -0.01 -0.001 0.001 0.01 0.1


X0 f(x) -1 -1 - 1 1 1

L+ is not equal to, so Limit does not exist.

x -0.1 -0.01 -.000001 0.001 0.01 0.1


3. Lim
X0 f(x)    0.032 0.1 0.3
2

Lim f(x) = In such case priority should be given for the domain
0 to determine either the right/ left hand limit is
x0 relevant.
For lim , since the values of x are restricted to
non-
x0
negative numbers, the left hand limit is not relevant.

Basic Limit Theorems


3

If lim f(x) = L and lim g(x) = m, then,


xa xa

i. lim (f(x) ± g(x)) = lim (f(x) ± lim g(x)) = L + M


xa xa xa

ii. lim c f(x) = c lim f(x) = cL

xa xa

iii. lim (f(x) . g(x)) = lim (f(x) . lim g(x)) = LM


xa xa xa
iv. lim (f(x) / g(x)) = lim (f(x) / lim g(x)) = L/M M≠0
xa xa xa

Example: evalute lim x3 +4x2 – 1/x +7x + 11


x2

Continuity of a Function
The continuity of a function can be determined at a specific point or over an
interval.
A function is said to be continuous at a point when there exists no gap at that
point. At the point of discontinuity we can’t find marginal functions (MR,
MC---)
A function f is continuous at x = a if and only if all these conditions apply to f at
a:
1. f(a) is defined (that is, the domain of a f includes x = a)
2. Lim f(x) exists
xa
3. Lim f(x) = f (a) whether x approaches a from the left or right.
X a
Geometrically, a function, f is seen to be continuous at a point x = a when there
is neither a hole nor a gap in the graph of f at x = a
If any one of the three requirements specified above is not satisfied, the
function is f is said to be discontinuous at x = a.
|x|
Example: let f(x) = . Is f continuous at a) at x = 1 b) at x - 0
x

The Derivative
4

The derivative of a function f is that function, commonly denoted f ', f '(x),


dY
Dxf(x), or Y' Dxy, dx , whose function value at any x in the domain of f is

given by f '(x) = lim = lim , if that limit exists.


x0 x0
The process of determining the derivative of a function is termed
Differentiation. In order for the derivative to exist, the difference quotient
must have a limit as x0. At each x where this limit does exist, the
function is said to be differentiable.

3.1.2. Rules of Differentiation


1. Constant Function Rule
Derivative of a constant function is zero
a) f(x) = c b) f(x) = 9 c) f(x) = 100 - horizontal
straight line
f '(x) = 0 f '(x) = 0
2. Power Rule
The derivative of a variable raised to the constant power, n, where n is any real
number and n0, is equal to the power n multiplied times the variable raised to
the power n-1.
F(x) = Xn f(x) =X3 g(x) = x5 f(x) =X
F '(x) = n x n-1
f '(x) = 3x 2
g '(x) = 2x f '(x) = 1

h(x) = √ X h'(x) = =
3. Constant Multiplier Rule
The derivative of a constant times a function is the constant times the
derivative of the function.
f(x) = kg(x) f(x) = 5x 3 g(x) = 5x
f (x) = k. g '(x)
1
f (x) = 3.5.x = 15x
1 2 2
g ' (x) =5

4. Sum or Difference Rule


The derivative of the sum (or difference) of two functions is the sum (or
difference) of their respective derivatives.
f(x) = [g(x) + h(x)] f(x) = 6x 4 - 5x2 ⇾ f '(x) =
24x 10x
3-

f '(x) = [g '(x) + h'(x)] g(x) = 3x ⇾ g' (x) =3

(f + g) '(x) = f '(x) + g '(x ) =' 24x3 - 10x + 3

Product Rule
The derivative of a product is the deviate of the first factor multiplied by the
second, plus, the first factor multiplied by the derivative of the second.
5

H(x) = [f(x). 8 (x)] E.g. f(x) = (2x2-5) x+3)


h '(x) = [f '(x).g(x)] + [f(x) x g '(x)] f '(x) = [(4x) .(x+3)] + 1 (2x2-5)
= 4x2 + 12x + 2x2-5
= 6x2 + 12x -5
6. Quotient Rule
The derivative of a quotient is the denominator times the derivative of the
numerator, minus the numerator times the derivative of the denominator, all
over the denominator squared.
f ( x) 5 x2
h( x )= h( x )=
g (x ) E.g. x 3 +1
[ x 3 +1(10 x )]−[5 x 2 . 3 x 2 ]
h 1 ( x )=
[ x 3 +1)2

= =
( 1−x )
2
x≠0
H(x) = x
x 2 (−1)−)(1−x)(2 x)
h 1 ( x) =
( x 2 )2 = = =
7. Chain Rule
If y =f (u) is a differentiable function of u and u= g(x) is a different table

function of x, then

E.g. Y = dy/du = 10u9


y= f(u) dy/du = 12x

= U10 where U = 6x2 - 5 dy/du = 10u9 (12x) = 120xu9 = 120x (6x2 -


5)9

3.1.3. First and Second Derivative for Extreme


Definition: a number c in the domain of f is said to be critical number of f if and only if either f ′(c)
=0 or f ′ (c) does not exist.
Definition: let a and b be points in the domain D of a function f. Then, the value
a) f(a) is said to be absolute maximum value of f on D if and only if f(x) ≤ f(a) for all x in D.
b) f(b) is said to be absolute minimum value of f on D if and only if f(b) ≤ f(x) for all x in D.
The absolute maximum and absolute minimum values of f are called absolute extreme values.
Definition: let a and b be points in the domain D of a function f., the value
a) f(a) is said to be local(relative) maximum value of f if there is an open interval I containing a
and contained in the domain D such that f(x) ≤ f(a) for all x in I
6

b) f(b) is said to be local(relative) minimum value of f if there is an open interval I containing b


and contained in the domain D such that f(b) ≤ f(x) for all x in I
The relative maximum and relative minimum values of f are called relative extreme values.
The hilltops and valley bottoms on the graph of a differentiable function f corresponds to the relative
extreme values of f. The relative extreme values occur only at critical numbers of f.

Absolute max (also local max: no greater value of f anywhere)


y
Local max (no greater value of f nearby) local min (no smaller value of f nearby)
Y =f(x)

Local min (no smaller value of f nearby)


Absolute min (also lcal min)
(no smaller value of f anywhere)

a b c d e

Procedure value to find extreme values on a closed interval


Step- 1: find all the critical numbers of f.
Step -2: evaluate f at all the critical numbers and at the end points a and b.
Step -3: take the largest and the smallest values obtained in step-2
Examples: find the extreme values of the following functions
Examples: Find the maxima and minima for the function f defined as
1. f(x) = x3 - 7.5x2 +10 0<x<5
f ' (x) = 3x2 - 15x+12 = 0
3x2 - 15x + 12 = 0
x2 - 5x + 4 = 0
(x-4) (x-1) = 0
x* = 4, 1 - critical values. Then compute f(x) at the critical points and end
points.
x 0 1 4 5
f(x) 10 3.5 -46 -52.5
On the interval [0, 5], f(0)= 10 is the absolute maximum and f(5)= -52.5 is the
absolute minimum.

2. f(x)=2x3+3x2-12x-7 [-3,0]
f '(x)= 6x +6x-12
2

x2+x-2 =0
(x-1)(x+2)=0
x* = 1, -2, of these, only x=-2 lies in the interval -3 <x<0. Then compute f(x) at
x=-2 and endpoints x=-3 and x=0.
7

x -3 -2 0
f(x) 2 13 -7

On the interval [-3, 0], f (-2) = 13 is the absolute maximum and f(0)= -7is the
absolute minimum.
First derivative test for relative (local) extreme values
Suppose that c is a critical point of a continuous function f and that f is differentiable at every point
in some interval containing c except possibly at c itself. Moving across c from left to right,
a) If f ′ changes from positive to negative at c, then f has a relative maximum value at c.
b) If f ′ changes from negative to positive at c, then f has a relative minimum value at c.
c) If f ′ does not change sign at c, then f has no relative extreme at c.
Note
a) If f ′ (x) ˃ 0 at each point xϵ(a,b), then f is increasing on [ a , b ].
b) If f ′ (x) < 0 at each point xϵ(a,b), then f is decreasing on[ a , b ].
Examples:
Find the relative maxima and minima of the following functions, if they exist.
1. f (x) = x2 - 4x +4
a. f '(x) = 2x - 4 b. Use f '(x) to determine the behavior of f
2x - 4 = 0 1. f ' (x) < 0 for x <2 and f  when x< 2
2(x-2) = 0 2. f ' (x) > 0 for x>2 and f  when x> 2.
X = 2 - candidate, so that at x=2 there is a relative minimum of f.
2. f(x) = 4x3
a. f ' (x) = 12x2 f ' (x) > 0 (+ve) for x<0 (f is increasing when x< 0)
12x = 0
2
f ' (x) > 0 (+ve) for x > 0 f is decreasing when
x< 0)
x = 0 (critical number)
The algebraic sign of f ' does not change as we move from left to right across
the critical point; therefore, the critical point x* 0, is neither a maximum or nor
a minimum.
The second derivative test for relative extreme values
Suppose f is continuous on an open interval I containing c such that f ′(c) = 0 and f′′ (c) exists .
Then, a) if f′′ (c) < 0, then f has relative maximum value at c.
b) if f′′ (c) > 0, then f has relative minimum value at c.
c) if f′′ (c) = 0 , from this test alone we cannot draw any conclusions
Examples:
Use the second derivative test to locate the relative extrema
a. f(x) = x2 - 4x - 45
f '(x) = 2x - 4, f ''(x) =2
2x = 4
X = 2 = critical value
f '' (2) = 2 . 0 - the function is concave upward at this point, Hence,
the point (2, f (2)) is a relative minimum point on function f.
8

b. f(x)= x3 +3x2 + 3x - 5
f '(x) = 3x2 + 6x + 3, f '' (x) = 6x + 6 f '' (-1) = 0
3x2 + 6x + 3 = 0 Use 1st derivative test
(3x+3) (x+1) = 0 x -3 -2 -1 1 2 3
3x=-3, x=-1 f '(x) 12 3 0 12 27 48
x = -1 Critical value +ve +ve
Therefore, No relative extreme.
c. f(x) = x2 - 6x + 7
1. f '(x) = 2x -6 f ''(x) =2
2. 2x - 6=0
x = 3 critical value.
3. f ''(x)= 2 >0, therefore, [3, f(3)] is a relative minimum.

3.1.4. Business Application of Differential Calculus


3.1.4.1. Marginal Analysis
One important use of the derivative in business and economics involves
marginal analysis MC, MR and MP.
Marginal cost - It is the rate of change in total cost per unit change in
production at an output level of x-units at any production level x.
Example
1. Suppose the total cost c(x) in thousands of dollars for manufacturing x unit
is given by the function C (x) = 575 + 25x -1/4x2
a. Find the marginal cost at a production level of x units
C' (x) = 25 - 1/2x

b. Find the marginal cost at a product level of 40 units and interpret the result
C ' (40) = 25 - 40/2 = 5,000.

At a production level of 40 units the rate of change of total cost relative to


production is Birr 5000. The cost of producing one more unit at this level of
production (40 units) is approximately 5,000 Birr. The cost of producing the
41st unit of product.

c. Find the actual cost of producing the 41st unit and compare this cost with
the result found in question b.

C (41) - C (40) = [575 + 25(41)-41/4] - 575+25(40)-40/4]


= (1025 - 420.25) - (1000 - 400)
= 604.75 - 600
= 4.75 = Birr 4,750

2. The market research department of a company recommends that the


company manufacture and market new transistor radio. After suitable
market testing the research department presents the following demand
equation
X = 10,000 - 1000 p (x is demand at Birr/radio)
P = 10 - x/1000
9

The financial department provides the following cost equation C(x) = 7000 +
2x. Conduct a marginal analysis for the company

Solution.

C(x) = 7000 + 2x TR= PQ = (10 - x/1000) X


C' (x) = 2 = 10x - x2/1000
MR = R'(x) = 10 - 2x/1000 = 10 - .002x

P(X) = R(x) - C(x)


= 10x - x2/1000 - (7000 + 2x)
= 8x - x2/1000 - 7000
P(X) = 8 - 0.005x

3. A manufacturer’s cost and revenue functions are


C (x) = 3,500 + 200x + 0.2x2 0<x< 100
And
R(x) = 284x - 0.5x2 0<x< 100
Where C(x) and R(x) are in Birr and x is the number of units of product
produced and sold
a. Determine the marginal cost, marginal revenue and marginal profit
functions
b. Compute C(50)and C'(50), R(50) and R'(50), P(50) and P'(50), R(60) and
R'(60), P(60)and P'(60), C(70) and C'(70), R(70)and R'(70), P(70) and
P'(70).
c. Interpret your results.

Solution
R'(x) = 284 - 1x R' (50) = 284-1(50) =234
C '(x) =200+0.4x C'(50) = 200 + 0.4(50) =220
P'(x) = R'(x) - C'(x) P'(50) = 84 - 1.4(50) = 14
= 284-1x - (200 +.4x)
R'(60) = 284-1(60) =224
= 84 - 1.4x C'(60) = 200-0.4(60) =224
P'(60) = 84 - 1.4(60) = 0
R'(70) = 284 - 1(70) = 214
C'(70) = 200- 0.4(70) =228
P'(70) = 84 - 1.4(70) = -14

R (50) = 284(50)-.5(502) =Birr12, 950


C (50) = 3500+ 200(50) + .2(502) = Birr14, 000
P (50) = 84(50) - .7(502) - 3500 = Birr (1,050)
R (60) = 284(60)-.5(602) =Birr15, 240
C (50) = 3500+ 200(60) + .2(602) = Birr16, 220
P (50) = 84(60) - .7(602) - 3500 = Birr (980)
R (70) = 284(70)-.5(702) =Birr17, 430
C (50) = 3500+ 200(70) + .2(702) = Birr18, 480
P (50) = 84(50) - .7(502) - 3500 = Birr (1,050)
10

At a production level of 50 units, the total revenue realized and the total cost
incurred are Birr 12,950 and Birr 14,000, respectively, and a production of one
more unit increases the revenue by Birr 234 and the cost by Birr 220.

At a production level of 60 units, the total revenue realized and the total cost
incurred are Birr 15,240 and Birr 16,220, respectively, and a production of one
more unit increases the revenue by Birr 224 and the cost by Birr 224.

At a production level of 70 units, the total revenue realized and the total cost
incurred are Birr 17,430 and Birr 18,480, respectively, and a production of one
more unit increases the revenue by Birr 214 and the cost by Birr 228.

4. A small machine shop manufactures drill bits that are used in petroleum
industry. The shop manager estimates that the total daily cost (in Birr) of
producing X bits is C(x) = 1,000 + 25x – 0.1x2.
a. Find the daily average cost if x units are produced.
b. Find the average cost per unit if 10 drill bits are produced.
c. Find the marginal average cost function.
d. Find the marginal average cost if 10 drill bits are produced, and interpret
the results.
Solution:
C ( x ) 1 , 000+25 x−0 . 1 x 2 1, 000
C( x) = = =−0 .1 x+25+
a. x x x
1 ,000
C (10) =−0 .1(10)+25+ = Birr 124
b. 10
dC ( x ) 1 , 000
C' ( x) = =−0 . 1− 2
c. dx x
1,000
C ' (10) =−0 .1− =−Birr 10.10
d. (10)2
A unit increase in production will decrease the average cost per unit by
approximately Birr 10.10 at a production level of 10 units.
5. The total profit (in Birr) from the sale of X video cassettes is P(x) = 5x – 0.05x 2
– 450.
a. Find the average profit if x video cassettes are produced and sold.
b. Find the marginal average profit function.
c. Find the average profit per unit if 150 video cassettes are produced and
sold.
d. Interpret the result.
Solution:
P (x ) 5 x−0 . 05 x 2−450 450
P( x ) = = =5−0. 05 x−
a. x x x
450
P(150 ) =5−0 .05 (150)− = Birr 1 .25
b. 150
dP( x ) 450
P '( x ) = =−0 . 05+ 2
c. dx x
11

450
P '(150 ) = −0 . 05+ =Birr 0 .015
d. (150 )2

A unit increase in production and sales will increase the average profit per
unit by approximately Birr 0.015 (1.5 cents) at a production and sales level
of 150 units.

3.1.4.2. Optimization Problems


Examples
1. A company manufactures and sells x transistor radios per week. If the weekly
cost and demand equations are: C(x) = 5000 + 2x and P = 10-x/1000 [0, 8000]

Find for each week


a. The production level that leads to maximum revenue the maximum revenue.
b. The production level that leads to maximum profit and the maximum profit.
c. The production level that leads to the minimum cost and the minimum cost.
Solution
a. TR = P(x) = 10x - x2/1000 b. Profit (P(x) = R(x) - c(x)
R' (X) = 10- 2x/1000 = 10x - .001x 2 - (5000-2x)
= 10-0.002x P(x) = 8x - .001x2-5000
TR get its maximum when P'(x) = 8-.002x
MR=0, so 10-0.002x=0 p(x) gets maximum when P'(x) =0
x = 5000 units 8 = .002x
R' (x) = - .002 - Absolute max. x = 4000 units
R(x) = 10(5000) - 50002/1000 P (4000) = 8(4000)-0.001(40002)-5000
= 25,000 Birr = 11,000 birr, R(x) = 24,000 Birr
(5000, 25,000) = P =Birr 5. (4,000 11,000) Price 6=Birr.

C. If the cost function is a 1st degree equation, the minimum cost is at x= 0

2. The Ethiopian Airlines purchases a particular type of plane at a cost of Birr


1,800,000. The company estimates that the average operating cost is a function
of x, the number of hours of flight time. Average operating cost, stated in Birr
per hour of flight time, is estimated by the function 0(x) = 0.05x - 200

a. Determine how many hours a plane should be flown if the objective is to


minimize the total average cost.
b. What is the minimum total average cost?
Solution
Average operating cost = 0.05x - 200
a. Total operating cost = 0.05x2 - 200x
Total cost = 0.05x2 - 200x + 1,800,000
C¯ (X) = 0.05x2-200x + 1, 800,000
x
= 0.05x - 200 + 1,800,000/x

The total average cost is minimum if C¯ '(x) = 0


C¯ '(x) = 0.05 - 3,600,000/x2
12

x = 6000 hours.

b. C(x) = .05x -200+1,800,000/x


= .05(6000)-200+1,800,000/6,000
= 300-200+300
= Birr 400

3. A rectangular area of 1,050 square feet is to be enclosed by a fence, and then


divided down the middle by other fence. The fence down the middle costs Birr
0.50 per foot, and the other fence costs Birr 1.50 per running foot. Find the
minimum cost for the required fence.

Solution.
Area of a rectangular polygon = 1050 sq. ft
Area = XY
= 1050 = XY = X = 1050/Y
Cost = (1.50y) 2 + (1.50x) 2 + 0.5y
= 3y +3x+0.5y
= 3.5y + 3x ------------------------------------------- C = 3.5(30) + 3(35)
C(y) = 3.5y + 3 (1050/y) = Birr 210
= 3.5Y + 3150/y
Cost is minimum when C '(y) is =0
C' (y) = 3.5 - 3150/y2
3.5 - 3150/y2= 0
3.5y2 = 3150
y2 = 900
Y = 30feet, X = 35 feet
5. Sharp industries produce table knives. Each knife cost Birr 6 to produce and sells for Birr 9. The
quality control manager has determined from past data that out of x knives that are produced during
any given day, the fraction defective for the day is given by x 2/20,000,000, where 100< x < 1500.
Each defective knife costs the company an additional Birr 20.
Required
a. Determine the equation that gives daily profit, p, as a function of daily production volume, x.
b. Determine the maximum daily profit and the daily production volume that yields the maximum
daily profit
Solution. a. Profit is the difference between all costs incurred and TR realized, that is
P = TR - TC
= PQ - (VQ + FC + Other costs)
= 9x - (6x + additional cost of the defective knives)
= 3x - (additional cost of the defective knives)
The number of defective knives produced in a day is determined by multiplying
the fraction of defective and the daily production volume. Hence,
Number of defectives = Fraction defective * Daily production volume
13

X2
= 20, 000, 000 * X

X3
= 20, 000, 000
Since each defective costs the company an additional Birr 20, then additional

X3 X3
cost of the defective knives = 20 * 20, 000 , 000 = 1,000,000
Thus, the daily profit is given by:

X3
P(x) = 3x - 1,000,000 (100< x<1,500)

3 x2
Critical values: P'(x) = 3 - 1,000,000 = 0

3 x2
3 = 1,000,000 , x2 = 1, 000 (the only critical value)
Test for the absolute extrema using second derivative test
−6 x
P"(x) = 1,000,000
P"(1000) = -0.06<0
By the second derivative test for absolute extrema, the function P(x) has an
absolute maximum at x = 1000. Hence,
(1000)3
P (1000) = 3(1000)- 1,000,000
= Birr 2000

3.2. Integral Calculus


3.2.1. Concepts
Calculus has two main Branches: Differential Calculus - which deals with the
problems of finding the rate at which a known but varying, quantity changes:
and Integral Calculus - which deals with the problem of finding a quantity,
given that we know the rate at which it is changing.

Integral calculus is the reciprocal of the differential calculus. Given the rate of
change f '(x), by integral calculus we can find the original function f(x).
Example: f(x) = 5 F(x) = 5x +c F'(x) = 5

3.2.2. Indefinite and Definite Integration


Because the derivative of a constant is zero, once an antiderivative of a function is found, another
antiderivative of the same function can be formulated simply by adding a non-zero constant to the
first derivative. Thus, F(x), by it self is not unique; it is only one member of a family of
14

antiderivatives for some specified function, each of these antiderivatives for some specified function,
each of these anti-derivatives differing from the others only by an arbitrary constant C. Thus, if F(x)
is an antiderivative of f(x), the general expression F(x) + C is called the ANTIDERIVATIVE of f(x),
or the INDEFINITE INTEGRAL, and is denoted by the symbol f(x)dx.
Given F(x, an antiderivative of f(x), the indefinite integral of f(x) is defined to be
F(x)+c = f(x)dx read as the indefinite integral of function f(x) with respect to
the variable x.
 - Integral sign
f(x) - Integrand
dx - indicates integration is to be performed with respect to the
variable X.
C - Constant of integration
The process for finding f(x)dx is called indefinite integration.

Definition
If f is a bounded function on the interval [a, b] we define the definite integral of
f as:
b
∫a f ( x)dx= F( x)|ba = F(b) − F(a)
Where
The numbers a and b are called limits of integration.
F (b) - the value of the antiderivative at x=b.
F (a) - the value of the antiderivative at x=a.
a - lower limit b - upper limit
b
∫a f ( x)dx − the definite integral of f between a lower limit x=a and an upper
limit x=b.
According to this definition the calculation of the definite integral proceeds as
follows:
1. Determine the antiderivative, F(x), of f(x)
2. Evaluate the antiderivative at x=b and at x= a
3. Subtract F(a) from F(b)

3.2.3. Rules for Integration


The most common are rules:
1. Constant Rule
f(x) = K f(x) = 3 f(x) = 0
f(x)dx = Kx+C 3dx = 3x+C 0dx = 0+c =C
2. Power Rule
f(x) = xn f(x) = x f(x) = x2
x n+1 x2 x3
+C +C
f(x)dx = n+1 ; n1 f(x)dx = 2 + C f(x)dx = 3
3. Constant Multiplier Rule
f(x) = kg(x) f(x) = 5x
15

if f(x) exists, f(x)dx = 5 +C


2
x
f(x)dx = Kg(x)dx+c = 5( 2 ) + C
5 x2
+C
f(x) = = 2
1 1 x3 x3
( )+C ( )+C
f(x)dx = 2 x2dx + C = 2 3 = 6

4. Sum or Difference Rule


f(x) = h(x)  g(x) , if h(x) and g(x) exist
f(x) = h(x)dx  g(x)dx
E.g. f(x) = 3x+6

3 2 3 2
( x + C 1 )+(6 x +C2 ) x + 6 x +C
2 2
f(x) = 3xdx + 6dx = = ; where C = C1
+ C2
5. Product Rule
f(x) = (x+2)2 = x2+4x+4
x3 4 x 2 x3
+ + 4x +C + 2 x2 + 4 x + C
f(x)dx = 3 2 = 3

6. Quotient Rule f(x) =


16

3 x3 2
= + +C
5 x2 5 x2
3
= x +2/5 x−2+C
5
−2+1
3/5 x +2/5 x +C
−2+1
3/5 x−2/5 x+C
f(x)dx =

3.2.4. Business Applications of Integral Calculus


3.2.4.1. Finding Total Functions
Examples
1. The marginal revenue function for a company product is given by the function
f(x) = 50,000 - x; where x is the number of units produced and sold. Moreover,
TR = 0 when no units are produced and sold. Find the company's TR function.
f(x) - marginal revenue
TR = the integration of MR
= F(x)dx = (50,000 - x)dx
= 50,00dx - xdx
= 50,000x - x2/2 + C
0= 50,000(0) - (0/2) + C
0=C
R(x) = 50,000x - x2/2

2. The function describing the MC of producing a product is f(x) = x+100, where x


= the number of units produced. It is also known that TC = 40,000 Birr when x
is 100 units. Determine the total cost function.
Solution.
MC = x + 100
TC = MC
= (X+100) dx
17

= xdx + 100dx
= x2/2 + 100x + C
40,000 = (1002/2) + 100(100) +C
=15,000 + C
C = 25,000
C(x) = x2/2 + 100x + 25,000

3. The function describing the marginal profit from producing and selling a
product is f(x) = - 6x+750 where x = the number of units produced and sold.
Moreover, when 100 units are produced and sold, total profit equals Birr
25,000. Determine the total profit function.
Solution
MP = - 6x+750 = -3x2+750x+c
TP = MP dx 25,000 = -3(1002) + 750(100) + C
= (-6x + 750)dx 25,000 = 45,000 + C
= -6xdx + 750dx + C C = -20,000
= -6x/2 + 750x + C P(x) = -3x2+750x-20,000

3.2.4.2. Area problems


Examples
1. Find the area of the region bounded by the lines f(x) = 2x and x = 2, and the x
axis.
Solution (2, 4)

Y = 2x

(0, 0) (2, 0)

To compute this area using calculus, apply the integral formula with f(x) = 2x.
Take b = 2 since the region is bounded on the right by the line x=2, and take
a=0 since, on the left, the boundary consists of the single point (0, 0), which is
part of the vertical line x=0. You will find, as expected that
2
Area = ∫0 2 xdx= x |0 = F (2) − F (0) = 4
22
18

2. Find the area of the region bounded by the curve f(x) = -x 2 +4x - 3 and the x
axis.
Solution
From the factored form of the polynomial f(x) = -x 2 +4x - 3 = - (x-3) (x-), we see
that the x-intercepts of the curve are (1, 0) and (3, 0). From the corresponding
graph we see that the region in question is below the curve f(x) = -x 2 +4x - 3
and extends from x=1 to x=3. Hence,

f(x)
f ( x )=−x 2 +4 x−3

x
0 1 3

The region is bounded by f(x) = -x2 +4x – 3 and the x-axis.


3
Area = ∫1 (−x + 4 x −3)dx
2

( 1
)
= − x 3 +2 x 2 −3 x |31
3
= F (3 ) − F (1)
4
=
3
Area below the X-Axis
If f(x) < 0 over some interval b <x <c, the corresponding area between the
graph of f(x) and the x-axis lies below the x-axis. The definite integral
c
∫b f ( x ) dx results in a value that is the negative of the area, so the
absolute value of such a definite integral gives the area.

Area 1
F(x

0 a b c x

Area 2
Area = Area 1 + Area 2
c
∫b f ( x )dx
b c
Where, Area 1 = a ∫ f ( x ) dx
and Area 2  or - b  ∫ f ( x ) dx
Example:
Find the area between the x-axis and the curve f(x) = x 2-9 from x=1 to x = 4.
Solution : Sketch the graph and identify the region needed.
f(x)
19

A1

-3 1 3 4 x

A2
-9

Find A1 and A2
3 1 1 1
∫1 ( x 2−9 )dx = 3 x 3−9 x|31=−[ F (3)−F(1 )]=−(−9 3 )=9 3 square units
A1 =
4 1 1
∫3 ( x 2−9)dx= 3 x 3−9 x|43=F (4 )−F (3 )=3 3 square units
A2 =

1 1 1
9 +3 =12 square units
Total area= A1 + A2 = 3 3 3

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