UNIT 8.

INTEGRAL CALCULUS

Contents
8.0 Aims and Objectives
8.1 Introduction
8.2 Anti-Differentiation /The Indefinite Integral/
8.3 Integration Rules
8.4 The Substitution Rule /Integration by Substitution/
8.5 Integration by Parts
8.6 Definite Integrals
8.6.1 Meaning of Definite Integrals
8.6.2 The Definite Integral as Area
8.6.3 Properties of Definite Integrals
8.7 Improper Integrals
8.7.1 Infinite Integrand
8.7.2 Other Type of Improper Integral
8.8 Economic applications of Integral Calculus
8.9 Summary
8.10 Answers to Check Your Progress Exercise
8.11 Model Examination Questions
8.12 References

8.0 AIMS AND OBJECTIVES

In this unit the concept of integral calculus is introduced. We begin this unit by discussing the
reverse operation of derivatives called antidifferentiation (indefinite integral). Later we
introduce the definite integral of a function.

After completing this unit , you will be able to:

- understand the antiderivative of a function.
- explain the different rules of integration.
- find the meaning of definite integrals with their properties.
- know other types of integral calculus like improper integrals.
- apply the concept of integral calculus in solving economic problems.

138
8. 1 INTRODUCTION

The previous units were dealt with differential calculus. We were discussing how to find the
derivative of a function and its economic applications. In this unit we will deal with another
part of calculus called integral calculus. It is the opposite of differentiation or of differential
calculus. You will be introduced with two types of integrals, the indefinite and definite
integral. Later on the economic application of integral calculus will be discussed.

8.2 ANTI-DIFFERENTIATION- THE INDEFINITE INTEGRAL

In many economic problems we can find the derivative of a function. For instance if we know
the function y = f (x
(x) the derivative can be found by differentiation. The problem is
then how to find the primitive function from the derived function. For example a researcher
has information about the growth rate of population .He/she may want to use this information
to predict about the future population level. An economist who knows the rate of inflation
may want to estimate the future prices from this information. In both cases it is necessary to
obtain the primitive function. This requires the concept of integration. The process of finding
a function from its derivative is called antidifferentiation or integration.
integration. It is the reverse of
differentiation.

Differentiation

Total function marginal function

Antidifferentiation
(Integration
(Integration))
Definition 1.
1. A function for which for every x in the domain of f is said to
be an antiderivative (or indefinite integral) of f.

Integral notation: an elongated s.

denotes integration of with respect to x.

- is called the integrand (the function to be integrated)
- - Similar to the in the differentiation operator , it shows that the operation has
to be performed with respect to the variable x.

139
Definition 2.
2. is called the indefinite integral of if and only if
for every x in the domain of f. c is called the constant of integration.
integration. It is called
indefinite integral because it has no definite numerical value. It is a function of the variable x.

Note that when you find the antiderivative of a function you can check your answer by
differentiation. That is, if you take the derivative of the function you will get the original
(primitive function).

Example1: check whether the function is an antiderivative of or not.

Solution: we have discussed in the above definition that is an antiderivative of if

and only if .

Therefore, is an anti derivative of .

Here are some techniques or rules of integration that will help you find the anti derivative of a
function.

8.3 INTEGRATION RULES

Since integration is the reverse of differentiation, many rules for integration can be obtained
by stating the corresponding rules for differentiation in reverse.

1. The constant multiple rule

, for a constant k.
That is, the integral of a constant times a function is equal to the constant times the integral of
the function.

Example 1:
1:

2. The power rule

, for n -1

140
That is to integrate (for n -1), increase the power of x by 1 and divide it by the new power
(n+1)

Example 2: Find

Solution:
Solution:

Example 3: Find

Solution:

Example 4:
4: Find

Solution:

Check Your Progress Exercise -1

Take the above results of integration and check by differentiation.
…………………………………………………………………………………………………
……………………………………………………………………………………………

3. The Exponential Rule

Let us see the indefinite integral formula for ex or in general.

, Where c is any constant. This formula follows from the derivative formula
for the exponential function discussed in chapter III.
The more general formula for an exponential function is

Example 5: Find

Solution:

4. The Logarithmic Rule

141
Note that the integrand is a special form of the power function with

This was not treated in the power rule and now it is considered in the logarithmic rule.

The above formula can be written as

which can take care of negative values of x.

The more general formula for logarithmic functions is given as follows

Example 6: Find

Solution:

Because if

Therefore, we can directly apply the logarithmic rule above.

Example 7:
7: Find

Solution:
Solution: Let

Hence

Check Your Progress Exercise -2

1. Find the indefinite integrals for the following exponential and logarithmic functions.

a) b)

142
 c) d)

5. The sum rule

The integral of the sum of a finite number of functions is the sum of the integrals of those
functions.
For the two functions case

Example 8: Find

Solution:
Solution:

(By constant multiple rule)

Notice that in place of separate constants of integration for each of the three integrals, a
single constant c was added at the end (or c = c1 + c2 + c3).

Example 9:
9: Find

Solution:

Now use the exponential rule to integrate the first term and the logarithmic rule for the
second term.

Hence we can write

143
 Where

8.4 THE SUBSTITUTION RULE (INTEGRATION BY SUBSTITUTION)

Integration by substitution is the integral version of the chain rule. The integral of

with respect to the variable x is the integral of with respect to the variable u:

Where has been substituted for

This can be proved by means of the chain rule itself.
Given a function where the chain rule states that

From this it follows that the anti derivative of,

Example 10: Find by substitution rule.

Solution: Before we proceed to the computation here is an important advice. If the integrand
is a product or quotient of two terms and one term is a constant multiple of the derivative of
an expression that appears in the other, then this expression is probably a good choice for u.

Therefore, for the above example, let , then

(Because can be cancelled)

Example 11: Find

144
Solution: Since 2x
2x+3 is the derivative of , you are advised to let

Then

You may follow the following steps to use the substitution rule.
1. Introduce the letter u to stand for some expression in x that is chosen with the
simplification of the integral as the goal.

2. Find

3. Rewrite the integral in terms of

4. Evaluate the resulting integral and then replace by its expression in terms of in the
answer.

Check Your Progress Exercise -3

1. For the following problems use integration by substitution.
a). b)

c). d)

8.5 INTEGRATION BY PARTS

This rule is a restatement of the product rule for differentiation. The rule is stated as follows:

Where is an antiderivative of .
We can prove this rule by using the product rule for differentiation.
Let the two functions are and , where is an antiderivative of .

If we integrate both sides of the equation we get

145
 Or

Generally to evaluate an integral of the form using integration by parts

1) First integrate and multiply the result by to get , where is an antiderivatve
of . Note that the factor selected for integration should be easy to integrate, and the factor
selected for differentiation should become simpler when differentiated.

2) Multiply the antiderivative G by the derivative of f

3) Take the integral of the result in step 2 above ( )

4) Subtract step 3 from step 1, we get

Example 12. Find by using integration by parts.

Solution:
Let and
(Since )

Example 13: Find

Solution: Both and are easy to integrate and differentiate. Our work will be more
simplified if we let and . Then

But

146
Check Your Progress Exercise - 4
1. For the following problems use integration by parts to find the given integral.

a) b).

c) d).

8.6 DEFINITE INTEGRALS

8.6.1 Meaning of Definite Integrals

The integrals discussed in the preceding sections were focused on the indefinite integral. It is
called indefinite because the antiderivative is a function of a variable and hence possesses no
definite numerical value.

The objective of this section is to discuss a related form of the indefinite integral called the
definite integral.
integral.

Let is a continuous function and if is the antiderivative of then

If we choose two values of x in the domain, say and, and substitute these values in
to the right side of the equation and taking the difference we get

This value is a specific numerical value free of the variable as well as the arbitrary constant
. It is called the definite integral of from to .

Notation:

- read as the definite integral of from to

The numbers and are called limits of integration.

integration.

147
Letter is the lower limit of integration.
Letter is the upper limit of the integration.

Therefore,

Let us see some examples on how to find the definite integral of a function.

Example 1: Evaluate

Solution: First find the antiderivative of

Then evaluate the indefinite integral at the upper and lower limits and take the difference to
get

Example 2: Evaluate

Solution: The indefinite integral is

Hence

Check Your Progress Exercise -5

Evaluate the following definite integrals.

a). b).

c).

8.6.2 The Definite Integral as Area

Consider the shaded region in figure 8.6.1 below, which is bounded by the graph of a
function, the -axis, and the vertical lines and .
f(x)
148
 Y = f(x)

X
a b
Figure 8.6.1 The area under from and
How do we find the shaded area in the above figure? Let us divide the interval [ in to
subintervals.

f(x)

Y = f(x)

X
X1 X2 X3 X4 X5 X6
X1 X2 X3 X4 X5
The total area of the rectangles is the sum of the area of the individual rectangles. For
example the area of the first rectangle is the product of its height and width
. We can find the area of the other four rectangles in a similar procedure.

Thus total area of the rectangles =

in our example)

This area is a rough approximation for the area under the curve (shaded area). If we increase
the number of subintervals (i.e. if n becomes very large) then the un-shaded portion of the

149
rectangles become very small and the approximation value will be closer to the area of the
shaded region. This can be illustrated by using the limit concept.

= Area of the shaded region, provided this limit exists.

Now if is infinitesimal, it can be replaced by the symbol . Therefore can be

rewritten as On the other hand the summation sign, represents the sum of a

finite number of terms. As the notation is substituted by an elongated , which is the

continuous counter part of the discrete concept of . In short the definite integral is

shorthand for the limit of a sum expression.

Area under a curve from to

Example 3: Find the area of the region bounded by the line , the -axis, and the
vertical line

Solution:
Solution:
To compute this area using calculus, apply the definite integral formula with the lower and
upper limits being 0 and 2 respectively.

Example 4: Find the area of the region bounded by the curve and the -axis.
Solution:
First solve

The x-intercepts are (1,0) and (-1,0)

The curve extends from x = -1 to x = 1

Therefore, Area =

Check Your Progress Exercise -6

150
Find the area of the region bounded by the curve and the x-axis.
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………

8.6.3 Properties of Definite Integrals

1.

Interchanging the upper and lower limits of integration will change the sign of the
definite integral.

2. = 0, where F is the antiderivative of .

3. ,

This can be extended to subintervals.

4.

5. , Where is any constant.

6.

7. . This is called integration by parts.

parts.

Example 5: Evaluate use integration by parts

Solution:
The formula for integration by parts is

Now let and

151
Example 6: Evaluate

Solution:
Solution: Using integration by parts
Let and . Next find the derivative of and the antiderivative of
.
That is and

Therefore, = 1.

8.7 IMPROPER INTEGRALS

This section extends the concept of the definite integral to integrals of the form

and , in which one limit of integration being infinite. Such integrals

are called improper integrals.

integrals.
In these cases, it is not possible to evaluate the integrals as respectively and
because is not a number. Use the concept of limits.
Definition:
Definition:

If this limit exists, the improper integral is a finite number and is said to be convergent (or to
converge). If the limit does not exist, the improper integral is said to be divergent and is infact
meaningless.

152
Similarly,

Example1: Evaluate

Solution:
First compute the integral from 1 to and then let approach infinity.

Or =

Hence

This improper integral does converge, and it has a value of 1.

Example 2. Evaluate

Solution:

Then is divergent.

8.7.1 Infinite Integrand

Even with finite limits of integration, an integral can still be improper if the integrand
becomes infinite somewhere in the interval of integration

Example1: Evaluate

Solution:
Solution:

This integrand is infinite at the lower limit of integration as . Therefore, we

should first find the integral (for and then evaluate

its limit as

Since this limit does not exist (as , the given integral is divergent.

153
Example 2:Evaluate
2:Evaluate

Solution:
This integral is improper because when , the integrand becomes infinite.

and it is convergent.

8.7.2 Other Types of Improper Integrals

The improper integral from to .

If both limits are finite the improper integral is said to be convergent,

convergent, otherwise the improper
integral is said to diverge.
diverge.

Example:
Y

Y = f(x)

Fig. X8.7.3. Area =

If f is non-negative, the improper integral may be interpreted as the total area

under the graph of f.

8.8 ECONOMIC APPLICATIONS OF INTEGRAL CALCULUS

154
The objective of this section is to acquaint students with the applications of integral calculus
in economics. There are different examples below, which require the application of both the
definite and indefinite integrals.
Example1: The marginal cost function of a firm is given by
Where is the level of out put produced. Find the total cost
function.

Solution:
Solution:
The marginal cost is found by differentiating the total cost function. The antiderivative of the
marginal cost will give you the total cost function.
,Where c is a constant.

Example 2: If the marginal cost of a firm is the following function of output,

, and if the fixed cost is , find the total cost function ?

Solution:
Solution:
Similar with example 1 above, you take the integral of the marginal cost function,

To apply the exponential rule, let us multiply by . The above expression becomes

By using the constant multiple rule

Now it is possible to directly apply the exponential rule.

We can find the value of c.

When output is zero, the fixed cost and the total cost are equal.
Setting , we get

155
Therefore, the total cost function is
Example 3:If
3:If the marginal propensity to save (MPS) is the following function of income,

, and if the aggregate saving is nil when income y is 81, find the

saving function .

Solution:

The value of c can be found by setting when y = 81

Hence the desired saving function is

Check Your Progress Exercise -7

1. If the marginal cost of a firm is given by , where is the level of
production, find the total cost of function.
…………………………………………………………………………………………………
……………………………………………………………………………………………

2.A firm’s marginal cost and marginal revenue function are given by and

, respectively. Find the firm,s cost function and revenue function if the

fixed cost is birr

…………………………………………………………………………………………………
……………………………………………………………………………………………

Now let us consider examples on economic problems that require the application of definite
integrals. The examples given below are related to the concept of consumers , and producers,
surplus.

156
Example 4: If the price-demand equation is given by , find the
consumers’ surplus at a price level of birr 8?

Solution: Let us first define consumers’ surplus.

Definition:
Definition: -consumers’ surplus is the difference between the total amount that consumers
would be willing to spend and the actual consumer expenditure on a commodity.

Where is the total willingness of the consumers to pay for a commodity.

is the actual payment.

The CS can be illustrated graphically as follows:
P

CS

P
D = (x)

x
x

The shaded area (CS) represents the total savings to consumers who are willing to pay more
than for the product but are still able to buy the product for .
Therefore, to find the CS, first find the value of when price is 8.
.

157
Thus , the total savings to consumers who are willing to pay a higher price for the product is
birr 1,440.

Example 5. Find the producers’ surplus at a price level of birr 20 for the price-supply
equation

Solution: Let’s define producers’ surplus.

Definition:
Definition: The market price is birr 20 per unit. Some producers are willing to supply some
units at a lower price than 20. But they are selling their product at the current price that is 20.

The additional money that these suppliers gain from the higher price is called the producers’
surplus
surplus.

The solution for this question can be answered in a similar way with consumers’ surplus.

where is the total sale.

are the total sales that the producers are willing to accept.

Now first find the quantity to be supplied at a price level of birr 20.

p=S( )=2+0.0002x2
x)=2+0.0002x

P =20

0 x =300

The next step is to calculate the producers’ surplus.

158
 =

Therefore, the total gain to producers who are willing to supply units at a lower price is birr
3,600.

Example 6: In a free competitive market price of a product is determined by the interaction of

supply and demand. Given the demand function and supply function, ,
find the consumers, and producers’ surplus at the equilibrium price level.

Solution:
Solution:
Here we need to first calculate the equilibrium price and then find the and as we did in
example 4 and 5 above.
At equilibrium, Demand = Supply

Substituting the value of x in to either the demand or supply equation, we get

Check Your Progress Exercise -8

1.Suppose the consumers’ demand function for a certain commodity is
Find the consumers’ surplus if the commodity is sold for birr 64 per unit.

2.If the demand and supply equation are given by and

respectively, find the consumers’ surplus and producers, surplus at the
equilibrium price level.

8.9 SUMMARY

In this section we will summarize different concept, symbols and formulas that we have
discussed.

159
. Antiderivative of a function : The indefinite integral of

. Rules of integration: the power rule, the constant multiple rule, the sum rule, the
exponential rule, the logarithmic rule,

. Integration by substitution:

. Integration by parts:
Where is an antiderivative of .
. Definite integral:

Notation: , where F is the antiderivative of f.

.Lower and upper limits of integration

.Definite integral as an area under a curve.
. Properties of definite integral

. Improper integral:

. Convergent and divergent

. Infinite Integrand
. Economic applications of integrals
. Both indefinite and definite integrals:
. Consumers’ surplus and Producers’ surplus

8.10 ANSWERS TO CHECK YOUR PROGRESS EXERCISE

Check Your Progress Exercise -2

a) b)

c) d)

Check Your Progress Exercise -3

1. a) b)

c). d).

160
Check Your Progress Exercise - 4

1. a). b).

c) d)

Check Your Progress Exercise -5

a). 1 b). c).

Check Your Progress Exercise - 6

Area =

Check Your Progress Exercise -7

1.

2. ,

Check Your Progress Exercise - 8

1. 2.

8.11 MODEL EXAMINATION QUESTIONS

1. Evaluate the following integrals

a) dx e)

b) f)

c) g)

d) h)

2. Given the marginal revenue function, R 1(Q) = 28Q - 0.3Q

find the total revenue function
R(Q)?

161
3. Given the marginal propensity to consume C 1(Y) = 0.8 + 0.1Y-1/2 and the information that
M = 20 when Y = 0, find the import function M(Y)

4. If the consumers' demand functions D(q) is given by D(q) = 128 – 2q 2 find the consumers'
surplus at if the market price is birr 110 per unity

5. Find the producers' surplus at a price level of birr 20 for the price-supply equation

6. Assuming a competitive market find the consumers' surplus and the producers' surplus at
the equilibrium price level for the given price-demand and price-supply equations.
a) P = D(x
D(x) = 50 – 0.1x
0.1x
P = S(x
S(x) = 11 + 0.05x
0.05x
b) P = D(x 0.004x2
D(x) = 25 – 0.004x
P = S(x 0.004x2
S(x) = 5 + 0.004x
7. Assume that the total revenue from the sale of q units of a certain commodity is

a) Find the marginal revenue

b) At what level of sales is the average revenue per unit equal to the MR

8.12 REFERENCES
Barnett and Ziegler: Applied Calculus for Business, Economics, Life Sciences, and
Sciences, 6thed.
Social Sciences,

economics, 3rd ed.

Chiang, Alpha c.: Fundamental methods of mathematical economics,

Applications, 5th ed.

Hoffman and Bradley: Brief calculus with Applications,

Schaum,s Outlines: Introduction to Mathematical Economics,

Economics, 3rd ed.

162