MT1186 Mathematical Methods

Chapter 4b: Integration 2

Octavius Yap
[email protected]
Chapter 4b: Integration 2

Contents
1 Integration by parts 7

2 Area under curve 14

3 Consumer’s surplus and producer’s surplus 14

3.1 Consumer’s surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.2 Producer’s surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

4 Marginal cost and revenue functions 18

5 Tutorial questions 22

6 Answers to tutorial questions 25

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Chapter 4b: Integration 2

Essential reading, Aims and Objectives

Essential reading
(i) Binmore and Davies (2002) Sections 10.2, parts of 10.3–10.4, 10.5–10.9.

(ii) Anthony and Biggs (1996) Chapters 25 and 26.

Further reading
(i) Simon and Blume (1994) Appendix A4.

(ii) Adams and Essex (2010) Sections 5.5–5.7, 6.1–6.2 and parts of 6.3.

Aims and objectives

The objectives of this chapter are as follows.

(i) To introduce the idea of an integral and see how it can be found using various
techniques.

(ii) To use integrals to find areas.

(iii) To see how integrals can be used in economics-based subjects.

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Chapter 4b: Integration 2

Excerpt from MF26 used in A level exams

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Chapter 4b: Integration 2

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Chapter 4b: Integration 2

Integration algorithm

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Chapter 4b: Integration 2

1 Integration by parts
The background of this technique has roots back to the product rule. Consider a
product of two functions u(x) and v(x) and differentiating with respect to x, we
have
d
(uv) = uv 0 + u0 v .
dx
Rearranging and integrating with respect to x,
d
uv 0 = (uv) − u0 v
Z dx Z
⇒ uv 0 dx = uv − u0 v dx · · · · · · (1)

Notice in equation (1),

u −→ u0

v0 −→ v

As a general rule, choose u (the term to be differentiated) in the following order:

L − logarithm functions e.g. : ln x, ln(x2 + 1)

I − inverse trigonometric functions e.g. : sin−1 (2x + 3), tan−1 x
A − algebraic functions e.g. : 1, 7x3 + 8
T − trigonometric functions e.g. : cos(x + 1), sin 3x
2
E − exponential functions e.g. : e2x+3 , e−x

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Chapter 4b: Integration 2

Example
Z 1
xe−2x dx

Solution:
in this integrand, we choose u = x.

u=x −→ u0 = 1
e−2x
v 0 = e−2x −→ v=−
2

Z Z
uv dx = uv − u0 v dx
0

Z  −2x  Z  −2x 
−2x e e
xe dx = x − − (1) − dx
2 2
Z
1 −2x 1
= − xe + e−2x dx
2 2
1 1
= − xe−2x + e−2x + C
2 4

Example
Z 2
x ln x dx

Solution:
in this integrand, we choose u = ln x.
1
u = ln x −→ u0 =
x
x2
v0 = x −→ v=
2

Z Z
uv dx = uv − u0 v dx
0

Z  2 Z  2
x 1 x
x ln x dx = ln x − − − dx
2 x 2
Z
1 −2x 1
= − xe + e−2x dx
2 2
1 1
= − xe−2x + e−2x + C
2 4

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Chapter 4b: Integration 2

Example
Z 3
x2 cos x dx

Solution:
This example uses integration-by-parts twice to solve the integral in the first
step, we choose u = x2 .

u = x2 −→ u0 = 2x
v 0 = cos x −→ v = sin x

Z Z
0
uv dx = uv − u0 v dx
Z Z
2 2
x cos x dx = x (sin x) − 2x(sin x) dx
Z
2
= x sin x − 2 x sin x dx
Z
For x sin x dx, we need to use integration-by-parts one more time:

u=x −→ u0 = 1
v 0 = sin x −→ v = − cos x

therefore,
Z  Z 
2 2
x sin x − 2 x sin x dx = x sin x − 2 −x cos x − 1 · (− cos x) dx
Z
2
= x sin x + 2x cos x − 2 cos x dx

= x2 sin x + 2x cos x − 2 sin x + C

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Chapter 4b: Integration 2

Example 4
Evaluate the following integrals
(a) x2 sin x
answer: −x2 cos x + 2x sin x + 2 cos x + C

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Chapter 4b: Integration 2
Z  
−1 d 1
sin−1 x = √


(b) sin x dx. note that
dx 1 − x2
√
answer: x sin−1 x + 1 − x2 + C

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Chapter 4b: Integration 2
Z e
(c) x3 (ln x)2 dx.
1
5e4 1
answer: −
32 32

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Chapter 4b: Integration 2

ln (1 + x2 )
Z
(d) Determine the integral dx.
x3
(Hint: it might be useful to start by using a substitution followed by an inte-
gration by parts.)
"
#
1 ln 1 + x2 2 2


answer: − + ln x − ln 1 + x +c
2 x2

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Chapter 4b: Integration 2

2 Area under curve

In this section, we will use definite integral

to represent plane areas. The integral
Z b
f (x) dx, a < b
a

measures the area between the graph of f

and the x-axis from x = a to x = b. Note
that the area below the x-axis is treated
as negative. In Figure 1, the total area
bounded by y = f (x), y = 0, x = a and
x = b, counting all of the area positively Figure 1: area above and below
x-axis
we should integrate the absolute values of f :
Z b Z b
f (x) dx = A1 − A2 and f (x) dx = A1 + A2
a a
Z b
The is no “rule” for integrating f (x) dx; one must break the integral into a sum
a
of integrals over intervals where f (x) > 0 (so f (x) = f (x)), and intervals where
f (x) < 0 (so f (x) = −f (x))

3 Consumer’s surplus and producer’s surplus

3.1 Consumer’s surplus

The demand function pD repre-

sents the different prices which
consumers are willing to pay for
different quantities of a good. If
equilibrium in the market occurs
at (p∗ , q ∗ ), with all consumers
paying the same price, p∗ , they
pay an amount of p∗ q ∗ to the sup-
pliers shown in the area of Fig-
ure 2.

Figure 2: what the consumer

would pays

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Chapter 4b: Integration 2

However, if the consumers are

willing to buy q ∗ units of the
good, it can be shown that the
consumers would be willing to
pay an amount given by
Z q
pD (q) dq ,
0

which is the area shown in the

Figure 3

Figure 3: what the consumer is

willing to pay

The difference between the area

that represents what they would
pay and the area that represents
what they actually pay is called
the consumer’s surplus given by
the formula
Z q∗
pD (q) dq − p∗ q ∗
0

shown in Figure 4

Figure 4: consumer’s surplus

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Chapter 4b: Integration 2

3.2 Producer’s surplus

Similarly, if the supplier are will-

ing to supply q ∗ units of goods, it
can be argued that they need to
be paid an amount given by
Z q∗
pS (q) dq
0

shown in Figure 5

Figure 5: what the producers

would receive

The difference between the area

that represents what they would
receive and the area that they
actually receive is the producer’s
surplus given by the formula
Z q∗
∗ ∗
pq − pS q) dq
0

shown in Figure 6

Figure 6: producer’s surplus

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Chapter 4b: Integration 2

Example 5
The inverse demand function for a good is given by
231
p= ,
2q + 1
and the supply function is given by
p − 11
q= .
2
Calculate the equilibrium price and quantity and the consumer surplus and producer
surpluses.

Solution:
The inverse supply function is p = 2q + 11 To find the equilibrium,
231
= 2q + 11
2q + 1
(2q + 1)(2q + 11) = 231
4q 2 + 24q − 220 = 0
q 2 + 6q − 55 = 0
(q + 11)(q − 5) = 0
⇒ q ∗ = 5 (q > 0)
p∗ = 21
The equilibrium price and quantity are p∗ = 21 and q ∗ = 5.
To find the consumer’s surplus
Z q∗
CS = pD (q) dq − p∗ q ∗
Z0 5
231
= dq − (21)(5)
0 2q + 1
 5
ln(2q + 1)
= 231 − 105
2 0
231
= ln 11 − 105
2
To find the producer’s surplus
Z q∗
∗ ∗
PS = p q − pS (q)
0
Z 5
q = (21)(5) − (2q + 1) dq
0
5
= 105 − q 2 + q 0


= 105 − 30
= 75

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Chapter 4b: Integration 2

4 Marginal cost and revenue functions

In chapter 2, we defined the marginal functions Marginal Revenue (M R), Marginal
Cost (M C) and Marginal Profit (M P r) as derivatives of Total Revenue, Total Cost
and Profit functions with respect to q, the quantity produced and sold as follows:
dT R
MR =
dq
dT C
MC =
dq
Q
d
MP r =
dq
Conversely, if the marginal functions are given, integrating them with respect to q,
we can get Revenue, Cost and Profit function using the following formulae:
Z
Total Revenue, T R = M R dq
Z
Total Cost, T C = M C dq
Y Z
Total Profit, = M P r dq

Points to remember:

(1) When q = 0, T C = F C.

(2) When q = 0, T R = 0.
Q
(3) When q = 0, Profit, = −F C because
Y
= TR − TC
⇒ T R = 0 when q = 0
⇒ TR = FC
Y
∴ = 0 − FC
= −F C

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Chapter 4b: Integration 2

Example 6
In any one week, your company can sell x units of product x at a price of $(250−5x)
per item, whilst incurring a marginal cost of $(25x − x2 ) per item.
(a) Determine the value of x that maximizes the profit for the week.

Solution:

price, p = 250 − 5x
T R = xp
= (250 − 5x)x
= 250x − 5x2
M R = 250 − 10x
M C = 25x − x2 (given)

Y
Profit, = TR − TC
Q
d d d
= TR − TC
dx dx dx
= MR − MC
= (250 − 10x) − 25x − x2

= 250 − 35x + x2
d2
Q
= −35 + 2x
dx2

Q
d
= 0 ⇒ 250 − 35x + x2 = 0
dx
(x − 25)(x − 10) = 0
x = 10, 25

d2
Q
When x = 10, = −35 + 20
dx2
= −15
<0

∴ Profit is maximum when x = 10

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Chapter 4b: Integration 2

(b) If fixed costs (i.e. the cost when x = 0) are $500, determine the optimal profit

Solution:

Z
TC = M C dx
Z
25x − x2 dx


=
25 2 x3
= x − +c
2 3

when x = 0, T C = F C = 500 (given)

∴ 500 = 0 − 0 + c
c = 500

25 2 1 3
∴ TC = x − x + 500
2 3
T R = 250x − 5x2

Profit = T R − T C
 
2 25 2 1 3
= 250x − 5x − x − x + 500
2 3
1 35
= x3 − x2 + 250x − 500
3 2

Maximum profit = Profit when x = 10

1 35
= (10)3 − (10)2 + 250(10) − 500
3 2
1
= $583
3

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Chapter 4b: Integration 2

Example 7

The marginal cost function, M C = 10+0.02x where x is the production level. Fixed
costs are 85. What production level gives a total cost of 610?

Solution:

M C = 10 + 0.02x
Z
TC = M C dx
Z
= (10 + 0.02x) dx
x2
= 10x + 0.02 +k
2
T C = 10x + 0.01x2 + k → (1)

when x = 0, T C = F C = 85
∴ (1) → 85 = 0 + 0 + k
k = 85

∴ T C = 10x + 0.01x2 + 85

when T C = 610, 10x + 0.01x2 + 85 = 610

0.01x2 + 10x − 525 = 0

√
−10 ± 100 + 21
x=
2(0.01)
= 50, − 1050
x = −ve is economically meaningless

∴ when T C = 610, x = 50

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Chapter 4b: Integration 2

5 Tutorial questions
1. Evaluate the following integrals
Z
(a) (x + 3)e2x dx
Z
(b) (x2 − 2x)ekx dx
Z
(c) x3 ln x dx
Z
ln(ln x)
(d) dx
x
Z
2
(e) x5 e−x dx
Z
(f) x(ln x)3 dx
Z
(g) x2 tan−1 x dx
Z
(h) x sin−1 x dx

2. (The following question are taken from past year UOL exam papers from various sources and might require
more than one type of integration techniques learnt thus far)

Evaluate the following integrals

Z √
(a) e x dx
Z
(b) sec4 x dx
Z
(c) cosec 4 x dx
√
Z
(d) x2 1 − x dx
Z √
(e) x2 1 − x2 dx (Hint: use the substitution x = sin θ)
Z
x+2
(f) dx
x(x − 1)2
Z 25
dx
(g) √
16 x(x − 9)
Z
ln(x + 1)
(h) dx
x2
Z
cos x
(i) dx
(1 − sin x)(2 + sin x)

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Chapter 4b: Integration 2

3. (a) i. Show that the derivative of tan x is sec2 x

ii. Determine the values of a for which
Z a Z π
4
(x − 1) dx = 2 sec2 x dx
1 0

(b) State the compound angle formula of cos(A + B) and use it to show that

cos 2A = 1 − 2 sin2 A .

Hence find Z
sin2 x dx .

4. State the double angle formula for cos 2θ and use it to show that

cos 4θ − 4 cos 2θ = 8 sin4 θ − 3 .

Hence evaluate
Z π
8
i. 64 sin4 θ dθ
0
Z π
8 1
ii. (cos 4θ − 4 cos 2θ + 3) 2 dθ
0

5. For some positive constants k, A and B, the demand and supply equations for
a particular good are given, respectively, as follows:
k
q= , q =p−B .
p+A
Given that the equilibrium quantity is A + B, find k in terms of A + B.

Find an expression, in terms of A and B, for the consumer surplus.

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Chapter 4b: Integration 2

6. A market has an equilibrium price of 14 and an equilibrium quantity of 6.

(a) If this market’s elasticity of demand is given by
p
ε= ,
26 − p
find its demand function.
(b) The market’s inverse supply function has the form

pS (q) = aq + b,

for some numbers a and b. Given that the producer surplus is 36, find
the values of a and b. Hence, deduce the supply function, q S (p), for this
market.
(c) An excise (or per-unit) tax of T is imposed on the market. Find the new
equilibrium price and quantity of the market.
Hence find the value of T that maximises the tax revenue.

7. A firm has fixed costs of 10 and its marginal cost and marginal revenue functions
are given, respectively, by

M C = 2q 2 − 6q + 6 and M R = 22 − 2q

where q is the level of production. Determine an expression for the firm’s profit
function, in terms of q. Determine the value of q which maximises the profit.

8. The marginal cost function, M C for a product is given by

1
MC = 1 −
(Q + 1)2

where Q is the quantity produced.

If the average cost per unit when producing 4 units of 3.05, what is the total
cost of producing 5 units of the product?

9. A firm’s marginal cost function is

20 √ 1
√ e Q + Q3 +
Q Q+1

The firm’s fixed costs are 20. Determine the total cost function.

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Chapter 4b: Integration 2

6 Answers to tutorial questions

1 1
1. (a) (x + 3)e2x − e2 x + C
2 4
1 2 2 2
(b) (x − 2x) ekx − 2 (x − 1)ekx + 3 ekx + C
k k k
1 4 1 4
(c) x ln x − x + C
4 16
(d) (ln x)(ln(ln x)) − ln x + C
1 2
(e) − e−x (x4 + 2x2 + 2) + C
2
2
 
x 3 3 2 3 3
(f) (ln x) − (ln x) + (ln x) − +C
2 2 2 4
x3 −1 x2 1
(g) tan x − + ln (1 + x2 ) + C
3 6 6
1 √
 
1 2 1
(h) x − sin−1 x + x 1 − x2 + C
2 4 4
√ √
2. (a) 2 ( x − 1) e x + C
1
(b) (3 + tan2 ) tan x + C
3
1
(c) − (3 + cot2 ) cot x + C
3
2 4 2
(d) − (1 − x)3/2 + (1 − x)5/2 − (1 − x)7/2 + C
3 5 7
1 −1 1 √
(e) sin x − x 1 − x2 (1 − x2 ) + C
8 8
3
(f) 2 ln x − 2 ln x − 1 − +C
x−1
 
1 7
(g) ln
3 4
ln(x + 1)
(h) − − ln(x + 1) + ln x + C
x
1 1
(i) − ln 1 − sin x + ln 2 + sin x + C
3 3
3. (a) i. proof
ii. a = −1 or a = 3
1 1
(b) x − sin 2x + C
2 4
√
4. i. 2 − 8 2 + 3π
√
π 2−4
ii.
8
5. k = 2(A + B)2

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Chapter 4b: Integration 2

p
6. (a) q D (p) = 13 −
2
p
(b) q S (p) = −1
2
T T
(c) p∗T = 14 + , qT∗ = 6 −
2 4
The tax revenue is maximised when T = 12.

7. q = 4
1
8. 13
6
√
Q 1
9. T C = 40e + Q4 + ln(Q + 1) − 20
4

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