09/12/2024

CHAPTER 3 3.1 Derivatives (Đạo hàm)

DERIVATIVES, INTEGRALS
AND APPLICATIONS

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09/12/2024 Chapter 3: Derivatives, Integrals and Applications

Objectives Instantaneous Rates of Change

Derivative (đạo hàm)

• To use the definition of derivative to find
derivatives of functions

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Instantaneous Rates of Change Instantaneous Rates of Change

The following procedure illustrates how to find the derivative In addition to f  (x), the derivative at any point x may
of a function y = f (x) at any value x. be denoted by

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Instantaneous Rates of Change Example 1 – Revenue

Suppose that an oil company’s revenue (in thousands
Marginal Revenue (Doanh thu biên) of dollars) is given by the equation

where x is the number of thousands of barrels of oil

sold each day.
(a) Find the function that gives the marginal revenue
at any value of x.
(b) Find the marginal revenue when 20,000 barrels
are sold (that is, at x = 20).
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Example 1(a) – Solution Example 1(a) – Solution cont’d

The marginal revenue function is the derivative of R(x).

Thus, the marginal revenue function is

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Example 1(b) – Solution cont’d Example 1(b) – Solution cont’d

The function found in part (a) gives the marginal Because the marginal revenue is used to approximate
revenue at any value of x. To find the marginal the revenue from the sale of one additional unit, we
revenue when 20 units are sold, we evaluate R (20). interpret R (20) = 60 to mean that the expected
revenue from the sale of the next thousand barrels
(after 20,000) will be approximately $60,000.

[Note: The actual revenue from this sale is

Hence the marginal revenue at x = 20 is 60 thousand R(21) – R(20) = 1659 – 1600 = 59 thousand dollars.]
dollars per thousand barrels of oil.

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Objectives
• To find derivatives of powers of x

• To find derivatives of constant functions

Derivative Formulas
(Các công thức tính đạo hàm) • To find derivatives of functions involving constant
coefficients

• To find derivatives of sums and differences of

functions
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Derivative of f(x) = xn Derivative of a Constant

A function of the form y = f(x) = c, where c is a
The Power Rule for derivatives is as follows: constant, is called a constant function. We can show
that the derivative of a constant function is 0, as
follows.
Example 2 – Derivatives
Find the derivatives of the following functions.
We can state this rule formally.
(a) (b) (c) (d) Constant Function Rule

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Derivative of y = c  u(x) Derivatives of Sums and Differences

Sum Rule
Coefficient Rule

Difference Rule

Example 3 – Coefficient Rule for Derivatives

Find the derivatives of the following functions. Example 4 – Sum and Difference Rules
(a) (b) (c) Find the derivatives of the following functions.
(a) (b)

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Product Rule Quotient Rule

Product Rule
Quotient Rule

Example 5 – Product Rule

Find dy/dx if Example 6 – Quotient Rule
If find f(x).

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Composite Functions Chain Rule

If f and g are functions, then the composite Chain Rule
functions g of f (denoted ) and f of g
(denoted ) are defined as follows:

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Example 7 – Chain Rule Power Rule

If

Solution:
Example 8 – Power Rule with Radicals
If we write this function as y = f(u) =
with u = x2 – 1, we can find the derivative. Find the derivatives of

(a) and (b)

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Example 9 – Demand Example 9 – Solution cont’d

The demand for x hundred units of a product is given

by When p = 24, the rate of change is

where p is the price per unit in dollars. Find the rate

of change of the demand with respect to price when
p = 24. This means that when the price is $24, demand is
Solution: changing at the rate of –27 hundred units per dollar,
The rate of change of demand with respect to price is or if the price changes by $1, demand will change by
about –2007 units.

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Using Derivative Formulas Using Derivative Formulascont’d

Summary of Derivative Formulas

Summary of Derivative Formulas

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Second Derivatives Example 10 – Second Derivative

Because the derivative of a function is itself a (a) Find the second derivative of
function, we can take a derivative of the derivative. (b) If find
The derivative of a first derivative is called a second
derivative.

We can find the second derivative of a function f by

differentiating it twice.

If f represents the first derivative of a function, then

f represents the second derivative of that function.
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Higher-Order Derivatives Example 11 – Higher-Order Derivatives

We can also find third, fourth, fifth, and higher
derivatives, continuing indefinitely. Find the first four derivatives of

The third, fourth, and fifth derivatives of a function f

are denoted by f, f (4), and f(5), respectively.

Other notations for the third and fourth derivatives

include

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Exercises:
Pages: 580-582
1-14; 19-26;
47,48, 50-56;
Pages:587-589 3.2
1-8;11-20;27-30; Applications: Marginals and
39-46; 48,49 Derivatives
Pages:594-595
1-22;
39-43;47,48,51
Pages: 601
36-40,42,43,44

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Objectives Marginal Revenue

The instantaneous rate of change (the derivative) of the revenue
• To find the marginal cost and marginal revenue at function gives the marginal revenue function.
different levels of production Marginal Revenue function (hàm doanh thu biên)

• To find the marginal profit function, given information

about cost and revenue
Note that if the demand function for a product in a monopoly
market is p = f(x), then the total revenue from the sale of x units
is

•demand function: hàm cầu;

•monopoly market: thị trường độc quyền
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Ex.1 – Revenue and Marginal Revenue Example 1 – Solution

If the demand for a product in a monopoly (a)The total revenue function is
market is given by
p = 16 – 0.02x
where x is the number of units and p is the price (b)The marginal revenue function is
per unit.
(a) find the total revenue function, and
(b) find the marginal revenue for this product at At x = 40, R(40) = 16 – 1.6 = 14.40 dollars per unit.
Thus the 41st item sold will increase the total
x = 40.
revenue by approximately $14.40.
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Marginal Revenue Marginal Revenue

The marginal revenue is an approximation or estimate Marginal revenue (and other marginals) can be used
of the revenue gained from the sale of 1 additional to predict for more than one additional unit.
unit.
We have used marginal revenue in Example 1 to find For instance, in Example 1, per unit
that the revenue from the sale of the 41st item will be means that the expected or approximate revenue for
approximately $14.40. the 41st through the 45th items sold would be
The actual increase in revenue from the sale of the
41st item is
The actual revenue for these 5 items is

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Marginal Cost Example 2 – Marginal Cost

Suppose the daily total cost in dollars for a certain
The derivative of a total cost function gives the
factory to produce x kitchen blenders is
marginal cost function.
Marginal Cost Function: (Hàm chi phí biên)
(a) Find the marginal cost function for these blenders.
(b) Find and interpret the marginal cost when x = 80
and x = 200.
Solution:
(a) The marginal cost function is the derivative of C(x).

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Example 2 – Solution cont’d

Example 2 – Solution cont’d

(b) Note that is the actual

increase in total cost for an 81st blender.
Also, means that total cost would increase
These values for the marginal cost can be used to by about $32 if a 201st blender were produced.
estimate the amount that total cost would change if
production were increased by one blender. Whenever is positive it means that an additional
Thus, means total cost would increase unit produced adds to or increases the total cost. In
addition, the value of the derivative (or marginal cost)
by about $3.20 if an 81st blender were produced. measures how fast C(x) is increasing.
Thus, our calculations above indicate that C(x) is
increasing faster at x = 200 than at x = 80.
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Example 2 – Solution cont’d

Marginal Cost
The graphs of the total cost function and the Because producing more units can never reduce the total
marginal cost function cost of production, the following properties are valid for
total cost functions.
1. The total cost can never be negative. If there are fixed
costs, the cost of producing 0 units is positive; otherwise,
the cost of producing 0 units is 0.
2. The total cost function is always increasing; the more
units produced, the higher the total cost. Thus the
marginal cost is always positive.
3. There may be limitations on the units produced, such
as those imposed by plant space.
(a) Total cost (b) Marginal cost

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Marginal Profit Marginal Profit

As with marginal cost and marginal revenue, the The price of the product is determined in the market by
derivative of a profit function for a commodity will give the intersection of the market demand curve (from all
consumers) and the market supply curve (from all firms
us the marginal profit function for the commodity. that supply this product).
Marginal Profit (Hàm lợi nhuận biên)
The firm can sell as little or as much as it desires at the
given market price, which it cannot change.

Therefore, a firm in a competitive market has a total

In a competitive market, each firm is so small that its revenue function given by R(x) = px, where p is the market
actions in the market cannot affect the price of the equilibrium price for the product and x is the quantity
sold.
product.
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Ex.3 – Profit in a Competitive Market Example 3 – Solution cont’d

A firm in a competitive market must sell its product Thus the profit function is
for $200 per unit. The cost per unit (per month) is 80
+ x, where x represents the number of units sold per
month. Find the marginal profit function.

Solution:
If the cost per unit is 80 + x, then the total cost of x units The marginal profit is
is given by the equation

The revenue per unit is $200, so the total revenue is given

by R(x) = 200x.
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Example 4 – Marginal Profit Example 4 – Marginal Profit

cont’d

Graphs of a company’s total revenue and total (a) If 100 units are being produced and sold, will
cost functions. producing the 101st item increase or decrease the
profit?

(b) If 300 units are being produced and sold, will

producing the 301st item increase or decrease the
profit?

(c) If 1000 units are being produced and sold, will

producing the 1001st item increase or decrease the
profit?
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Example 4 – Solution Example 4 – Solution cont’d

At a given x-value, the slope of the tangent line to
each function gives the marginal at that x-value. Thus, the tangent line to R(x) will be steeper than
the tangent line to C(x). Hence
which means that the revenue from the 101st item
will exceed the cost.
Therefore, profit will increase when the 101st item
is produced.
Note that at x = 100, total costs are greater than
(a)At x = 100, we can see that the graph of R(x) is total revenue, so the company is losing money but
steeper than the graph of C(x). should still sell the 101st item because it will reduce
the amount of loss.
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Example 4 – Solution cont’d

Example 4 – Solution cont’d

(b) At x = 300, we can see that the tangent line to (c) At x = 1000, we can see that the tangent line to
R(x) again will be steeper than the tangent line to C(x) will be steeper than the tangent line to R(x).
C(x).
Hence which means that the Hence which means that the cost
revenue from the 301st item will exceed the cost. of the 1001st item will exceed the revenue.
Therefore, profit will increase when the 301st item
is produced.
Therefore, profit will decrease when the 1001st item
is produced.

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Exercises cont’d

Pages: 614-617
1-22; 25-28
Pages: 621
3.3
100-108;
Relative Maxima and Minima:
Curve Sketching

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Objectives Relative Maxima and Minima: Curve Sketching

The graph of has two “turning

• To find relative maxima and minima and horizontal points
of inflection of functions
points,” at and (3, –7).

• To sketch graphs of functions by using information about

maxima, minima, and horizontal points of inflection

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Relative Maxima and Minima: Curve Sketching Relative Maxima and Minima: Curve Sketching

Relative Maxima and Minima We say a function is increasing on an interval if the

values of the function increase as the x-values
increase (that is, if the graph rises as we move from
left to right on the interval).

Similarly, a function is decreasing on an interval if the

values of the function decrease as the x-values
increase (that is, if the graph falls as we move from
left to right on the interval).

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Relative Maxima and Minima: Curve Sketching Relative Maxima and Minima: Curve Sketching
Figure (a) shows the graph of a function, and Figure (b)
Increasing and Decreasing Functions shows the graph of its derivative. The figures show that
the graph of y = f (x) is increasing for the same x-values
for which the graph of is above the x-axis (when
f (x) > 0).

(a) Chapter 3: Derivatives, Integrals and

(b)
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Relative Maxima and Minima: Curve Sketching Relative Maxima and Minima: Curve Sketching
Similarly, the graph of y = f (x) is decreasing for the same Relative Maximum and Minimum
x-values (–1 < x < 3) for which the graph of y’=f’(x) is
below the x-axis (when f (x) < 0).
The derivative f (x) can change signs only at values of x at
which f (x) = 0 or f (x) is undefined. We call these values Figure 2 shows a function
of x critical values. The point corresponding to a critical with two relative maxima, one
at x = x1 and the second at
value for x is a critical point. x = x3, and one relative minimum
Because a curve changes from increasing to decreasing at at x = x2. At x = x1 and x = x2,
a relative maximum and from decreasing to increasing at we see that f(x) = 0, and at
x = x3 the derivative does not
a relative minimum (see Figures (a)), we have the exist.
following. Figure 2

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Relative Maxima and Minima: Curve Sketching Relative Maxima and Minima: Curve Sketching
Using the critical values of f(x) and the sign of f(x) between
Thus we can find relative maxima and minima for a curve those critical values, we can create a sign diagram for
by finding values of x for which the function has critical f(x). The sign diagram for the graph in Figure 2 is shown in
points. The behavior of the derivative to the left and Figure 3.
right of (and near) these points will tell us whether they
are relative maxima, relative minima, or neither.
Because the critical values are the only values at which
the graph can have turning points, the derivative cannot
change sign anywhere except at a critical value. Thus, in Figure 2 Figure 3
an interval between two critical values, the sign of the This sign diagram was created from the graph of f, but it is
derivative at any value in the interval will be the sign of also possible to predict the shape of a graph from a sign
the derivative at all values in the interval. diagram.
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Relative Maxima and Minima: Curve Sketching Relative Maxima and Minima: Curve Sketching
Figure 4 shows the two ways that a function can Following is the procedure for finding relative maxima
have a relative maximum at a critical point, and and minima of a function.
Figure 5 shows the two ways for a relative
minimum.

Figure 4

Figure 5

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Relative Maxima and Minima: Curve Sketching Relative Maxima and Minima: Curve Sketching
Note that we substitute the critical values into the
original function f (x) to find the y-values of the
critical points, but we test for relative maxima and
minima by substituting values near the critical values
into the derivative of the function, f (x).
If the first derivative of f is 0 at x0 but does not change
from positive to negative or from negative to positive
as x passes through x0, then the critical point at x0 is
(a) (b) neither a relative maximum nor a relative minimum.
Figure 6 In this case we say that f has a horizontal point of
inflection (abbreviated HPI) at x0.
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Example 1 ExAdvertising
Example 2
Find the relative maxima, relative minima, and The weekly sales S of a product during an advertising
horizontal points of inflection of campaign are given by

where t is the number of weeks since the beginning of

and sketch its graph. the campaign and S is in thousands of dollars.
(a) Over what interval are sales increasing?
Decreasing?
(b) What are the maximum weekly sales?
(c) Sketch the graph for 0 ≤ t ≤ 20.
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Example 4 – Solution cont’d

Second-Derivative Test
The second-derivative test to determine whether a
critical point where f(x) = 0 is a relative maximum or
minimum.

Figure 10.10 75 76
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Second-Derivative Test Second-Derivative Test

Compare the advantages and disadvantages of the
second derivative test

Figure 10.21

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Objectives
• To find absolute maxima and minima

• To maximize revenue, given the total revenue function

Optimization in Business
• To minimize the average cost, given the total cost
and Economics function

• To find the maximum profit from total cost and total

revenue functions, or from a profit function

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Optimization in Business and Economics Optimization in Business and Economics

Absolute extrema are the functional values that are Let us begin by considering the graph of y = (x – 1)2,
the largest or smallest values over the entire domain shown in Figure (a). This graph has a relative
of the function (or over the interval of interest). minimum at (1, 0).

Absolute Extrema

Figure (a)

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Optimization in Business and Economics Optimization in Business and Economics

Note that the relative minimum is the lowest point on However, if the domain of the function is restricted to
the graph. In this case, the point (1, 0) is an absolute the interval [1/2, 2] then we get the graph shown in
minimum point, and 0 is the absolute minimum for the Figure (b).
function.

Similarly, when there is a point that is the highest point In this case, there is an absolute
on the graph over the domain of the function, we call the maximum of 1 at the point (2, 1) and
point an absolute maximum point of the graph of the the absolute minimum of 0 is still
function. at (1, 0).

In Figure (a), we see that there is no relative maximum. Figure (b)

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Optimization in Business and Economics Optimization in Business and Economics

If the domain of y = (x – 1)2 is restricted to the As the preceding discussion indicates, if the domain
interval [2, 3], the resulting graph is that shown in of a continuous function is limited to a closed
Figure (c). interval, the absolute maximum or minimum may
occur at an endpoint of the domain.
In this case, the absolute minimum In testing functions with limited domains for
is 1 and occurs at the point (2, 1), absolute maxima and minima, we must compare the
and the absolute maximum is 4 and function values at the endpoints of the domain with
occurs at (3, 4). the function values at the critical values found by
taking derivatives.
Figure (c)

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Maximizing Revenue Example 1 – Revenue

Because the marginal revenue is the first derivative of A travel agency will plan tours for groups of 25 or larger.
the total revenue, it should be obvious that the total If the group contains exactly 25 people, the price is $300
revenue function will have a critical point at the point per person. However, the price per person is reduced by
where the marginal revenue equals 0. $10 for each additional person above the 25.
What size group will produce the largest revenue for the
With the total revenue function R(x) = 16x – 0.02x2, the agency?
point where R(x) = 0 is clearly a maximum because R(x)
is a parabola that opens downward. But the domain Solution:
may be limited, the revenue function may not always The total revenue is
be a parabola, or the critical point may not always be a
maximum, so it is important to verify where the R = (number of people)(price per person)
maximum value occurs.
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Example 1 – Solution cont’d

Example 1 – Solution cont’d

The table shows how the revenue is changed by Thus when x is the number of people added to the
increases in the size of the group. 25, the total revenue will be

or

This is a quadratic function, so its graph is a parabola

that is concave down. A maximum will occur at its
vertex, where R(x) = 0.
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Example 1 – Solution cont’d

Example 1 – Solution cont’d

R(x) = 50 – 20x, and the solution to 0 = 50 – 20x is x = 2.5.

Thus adding 2.5 people to the group should maximize the
Note that both 27 and 28 people
total revenue. But we cannot add half a person, so we will
give the same total revenue and
test the total revenue function for 27 people and 28
people. This will determine the optimal group size that this revenue is greater than
because R(x) is concave down for all x. the revenue for 25 people.
Thus the revenue is maximized
For x = 2 (giving 27 people) we get
R(2) = 7500 + 50(2) – 10(2)2 = 7560. at either 27 or 28 people in the
group. (See Figure.)
For x = 3 (giving 28 people) we get
R(3) = 7500 + 50(3) – 10(3)2 = 7560. Figure

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Minimizing Average Cost Example 2 – Average Cost

Because the total cost function is always increasing for
x  0, the number of units that will make the total cost If the total cost function for a commodity is given by
a minimum is always x = 0 units, which gives an dollars, where x represents the
absolute minimum. number of units produced, producing how many
However, it is more useful to find the number of units units will result in a minimum average cost per unit?
that will make the average cost per unit a minimum. Find the minimum average cost.
Average Cost

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Example 2 – Solution cont’d

Maximizing Profit
We show that it is an absolute minimum by
using the second derivative. We have defined the marginal profit function as the
derivative of the profit function. That is,

Thus the minimum average cost per unit occurs

if 20 units are produced.
We have seen how to use the derivative to find
maxima and minima for various functions. Now we
can apply those same techniques in the context of
profit maximization.
We can use marginal profit to maximize profit
functions.
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Example 3 – Profit Maximizing Profit

Suppose that the production capacity for a certain In a monopolistic market, the seller who has a
commodity cannot exceed 30. If the total profit for monopoly controls the supply of a product and can
this commodity is force the price higher by limiting supply.
If the demand function for the product is p = f (x),
total revenue for the sale of x units is
R(x) = px =x f (x).
where x is the number of units sold, find the number
of items that will maximize profit. Note that the price p is fixed by the market in a
competitive market but varies with output for the
monopolist.

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Maximizing Profit Exercises cont’d

If represents the average cost per unit Pages: 663-665

sold, then the total cost for the x units sold is
5-14; 15-22; 25-44;

Because we have both total cost and total revenue

as a function of the quantity, x, we can maximize
the profit function, where p
represents the demand function and
represents the average cost function

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Objective
• To find certain indefinite integrals

3.4
Indefinite Integrals

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Indefinite Integrals Indefinite Integrals

When we know the derivative of a function, the It is clear that any function of the form
process of finding the function itself is called where C is an arbitrary constant, will have as its
derivative.
antidifferentiation.
For example, if the derivative of a function is 2x, we Thus we say that the general antiderivative of
know that the function could be because
is where C is an arbitrary constant.

But the function could also be because The process of finding an antiderivative is also called
integration. The function that results when integration
takes place is called an indefinite integral or, more
simply, an integral.
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Indefinite Integrals Example 1 – Antidifferentiation

We can denote the indefinite integral (that is, the general
antiderivative) of a function f(x) by If f′(x) = 3x2, what is f(x)?
Thus we can write to indicate the general
antiderivative of the function

The expression is read as “the integral of 2x with respect

to x.” In this case, 2x is called the integrand. The integral
sign, , indicates the process of integration, and the dx
indicates that the integral is to be taken with respect to x.
Because the antiderivative of 2x is x2 + C, we can write

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Powers of x Formula Other Formulas and Properties

Powers of x Formula

Example 2 – Powers of x Formula

Find
(a) and (b)

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Example 3 – Using Integration Formulas Example 4 – Revenue

Sales records at Jarus Technologies show that the rate of
Evaluate: change of the revenue (that is, the marginal revenue) in
dollars per unit for a motherboard is
(a) (b) (c)
where x represents the quantity sold.

Find the total revenue function for the product. Then find
the total revenue from the sale of 1000 motherboards.

Solution:
We know that the marginal revenue can be found by
differentiating the total revenue function.

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Example 4 – Solution cont’d

Example 4 – Solution cont’d

That is, Setting x = 0 and R = 0 gives

0 = 300(0) – 0.1(0)2 + K,
Thus integrating the marginal revenue function gives
the total revenue function. so K = 0.

Thus the total revenue function is

We can use the fact that there is no revenue when no

units are sold to evaluate K. The total revenue from the sale of 1000 motherboards
is $200,000.
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Objective
To evaluate integrals of the form

The Power Rule if n  –1

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Differentials Differentials
Our goal in this section is to extend the Powers of x
Formula, Differentials

to powers of a function of x. In order to do this, we

must understand the symbol dx.

We know that the derivative of y = f(x) with respect to x

can be denoted by dy/dx.
As we will see, there are advantages to using dy and dx
as separate quantities whose ratio dy/dx equals f(x).
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Example 1 – Differentials The Power Rule

Find Following is the formula for Power Rule for Integration.
(a) and Power Rule for Integration

(b)

Using the fact that

we can write the Power Rule in the next alternative

form.
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The Power Rule Example 2 – Power Rule

Power Rule (Alternative Form)
Evaluate

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Example 3 – Power Rule Example 4 – Revenue

Evaluate: Suppose that the marginal revenue for a product is
given by
(a) ( b)
Find the total revenue function.
Solution:

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Example 4 – Solution cont’d

The Power Rule

We know that R(0) = 0, so we have

Thus the total revenue function is

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Objectives
To evaluate integrals of the form or,
equivalently,

To evaluate integrals of the form or,

Integrals Involving Exponential equivalently,
and Logarithmic Functions

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Integrals Involving Exponential Functions

We know that

The corresponding integrals are given by the

following.
Integrals Involving Exponential
Exponential Formula
Functions

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Example 1 – Integral of eu du Example 2 – Real Estate Inflation

Suppose the rate of change of the value of a house
Evaluate: (a) (b) that cost $200,000 in 2015 can be modeled by

where V is the market value of the home in

thousands of dollars and t is the time in years since
2015.
(a) Find the function that expresses the value V in
terms of t.
(b) Find the predicted value in 2025 (after 10 years).
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Example 2(a) – Solution Example 2(a) – Solution cont’d

Using V = 200 (thousand) when t = 0, we have

Thus we have the value as a function of time

given by

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Example 2(b) – Solution cont’d

The value after 10 years is found by using t = 10.

Integrals Involving Logarithmic

Functions
Thus, in 2025, the predicted value of the home
is $431,950.

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Integrals Involving Logarithmic Functions Ex.3 – Integral Resulting in a Logarithmic Function

The Power Rule for integrals applies only if

Evaluate
That is,

The following formula applies when n = –1.

Logarithmic Formula

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Integrals Involving Logarithmic Functions Ex.4 – Integral Requiring Division

Figure shows several Evaluate

members of the family

Figure

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Objectives
• To use integration to find total cost functions from
information involving marginal cost

• To optimize profit, given information regarding marginal

Applications of the Indefinite cost and marginal revenue
Integral in Business and Economics
• To use integration to find national consumption
functions from information about marginal propensity to
consume and marginal propensity to save

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Total Cost and Profit Total Cost and Profit

We know that the marginal cost for a commodity is the
derivative of the total cost function— that is,
where C(x) is the total cost function.
Thus if we have the marginal cost function, we can
integrate (or “reverse” the process of differentiation) to where K represents the constant of integration. We
find the total cost. That is, know that the total revenue is 0 if no items are
produced, but the total cost may not be 0 if nothing is
produced.
If, for example, the marginal cost is 𝑀𝐶 = 4𝑥 + 3, the
total cost is given by The fixed costs accrue whether goods are produced or
not. Thus the value of the constant of integration
depends on the fixed costs FC of production.
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Total Cost and Profit Total Cost and Profit

Thus we cannot determine the total cost function from 2. The marginal cost is
the marginal cost unless additional information is
available to help us determine the fixed costs.
3. When 5 units are produced and sold, the total
It can be shown that the profit is usually maximized
cost is $1750. The profit should be maximized
when
when , or when 400 − 30𝑥 = 20𝑥 + 50.
Solving for x gives x = 7. To see whether our profit
To see that this does not always give us a maximum
is maximized when 7 units are produced and sold,
positive profit, consider the following facts concerning
let us examine the profit function.
the manufacture of widgets over the period of a month.
1. The marginal revenue is
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Total Cost and Profit Total Cost and Profit

The profit function is given by The total cost function is
where

Integrating, we get The value of fixed cost can be determined by using

the fact that 5 units cost $1750. This tells us that C(5)
= 1750 = 250 + 250 + K, so K = 1250.
Thus the total cost is
but R(0) = 0 gives K = 0 for this total revenue
function, so Thus, the profit is

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Total Cost and Profit Total Cost and Profit

Simplifying gives The preceding discussion indicates that even though
setting may optimize profit, it does not
We have found that if x = 7, and the graph of indicate the level of profit or loss, as forming the
P(x) is a parabola that opens downward, so profit is profit function does.
maximized at x = 7.

But if x = 7, profit is

That is, the production and sale of 7 items result in a loss

of $25.
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Ex.1 – Cost, Revenue, and Profit Example 1 – Solution

Suppose that
where x is the number of thousands of units and both (a)
revenue and cost are in thousands of dollars.

Suppose further that fixed costs are $100,236 and that

When we say that fixed costs equal $100,236, we
production is limited to at most 180 thousand units.
mean C(0) = 100.236.
(a) Determine C(x) and R(x) and graph them to determine
whether a profit can be made.
(b) Estimate the level of production that yields maximum
profit, and find the maximum profit.
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Example 1 – Solution cont’d

Example 1 – Solution cont’d

Thus The graphs of C(x) and R(x) are shown in Figure 12.8.

Figure 12.8
R(0) = 0 means From the figure we see that a profit can be made as
long as the number of units sold exceeds about 95
(thousand).
Thus
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Example 1 – Solution cont’d

Exercises cont’d

(b)From the graph we also see that R(x) – C(x) = P(x) Pages: 752-753
is at its maximum at the right edge of the graph. 5-34; 45,46;
Because production is limited to at most 180 Pages: 769-770
thousand units, profit will be maximized when x = 1-14;
180 and the maximum profit is

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Objectives
• To evaluate definite integrals using the Fundamental
Theorem of Calculus
3.5
The Definite Integral: The • To use definite integrals to find the area under a curve
Fundamental Theorem of Calculus

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Fundamental Theorem of Calculus Fundamental Theorem of Calculus

In general, the definite integral can be used to Stated differently, this theorem says that if the
find the change in the function F(x) when x changes function F is an indefinite integral of a function f that
from a to b, where f(x) is the derivative of F(x). This is continuous on the interval [a, b], then
result is the Fundamental Theorem of Calculus.
Fundamental Theorem of Calculus
Thus, we apply the Fundamental Theorem of
Calculus by using the following two steps.

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Properties Example 1 – Definite Integral

The properties of definite integrals given next follow
from properties of summations. Evaluate

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Properties Ex.2 – Properties of Definite Integrals

In the integral we call a the lower limit and
b the upper limit of integration.
Although we developed the definite integral with the (a) Evaluate (b) Compare
assumption that the lower limit was less than the
upper limit, the following properties permit us to
evaluate the definite integral even when that is not
the case.

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Properties Ex.3 – Properties of Definite Integrals

Another property of definite integrals is called the

additive property. Show that

5. If f is continuous on some interval containing a,

b, and c, then

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Objectives
• To use definite integrals to find total income, present
value, and future value of continuous income streams

• To use definite integrals to find the consumer’s surplus

Applications of Definite Integrals in
Business and Economics • To use definite integrals to find the producer’s surplus

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Continuous Income Streams Continuous Income Streams

An oil company’s profits depend on the amount of oil
that can be pumped from a well. Thus we can consider a In particular, the total income for k years is given by
pump at an oil field as producing a continuous stream of
income for the owner.

Because both the pump and the oil field “wear out” with
time, the continuous stream of income is a function of
time.

Suppose f(t) is the (annual) rate of flow of income from

this pump; then we can find the total income from the
rate of income by using integration.

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Example 1 – Oil Revenue Example 1 – Solution

A small oil company considers the continuous
pumping of oil from a well as a continuous income Total income
stream with its annual rate of flow at time t given by

in thousands of dollars per year. Find an estimate of Thus the total income is approximately $2,594,000.
the total income from this well over the next 10
years.

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Continuous Income Streams Continuous Income Streams

In addition to the total income from a continuous The present value as a definite integral is as follows:
income stream, the present value of the stream is Present Value of a Continuous Income Stream
also important.

The present value is the value today of a continuous

income stream that will be providing income in the
future.

The present value is useful in deciding when to

replace machinery or what new equipment to select.
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Example 2 – Present Value Example 2 – Solution

Suppose that the oil company in Example 1 is planning
to sell one of its wells because of its remote location.
Present value
Suppose further that the company wants to use the
present value of this well over the next 10 years to help
establish its selling price. If the company determines
that the annual rate of flow is

in thousands of dollars per year, and if money is worth

10%, compounded continuously, find this present value.
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Example 2 – Solution cont’d

Continuous Income Streams
Note that the future value of a continuously
If u = –0.3t – 1, then u = –0.3 and we get compounded investment at rate r after k years is Perk,
where P is the amount invested (or the present
value).
Thus, for a continuous income stream, the future
value is found as follows.
Future Value of a Continuous Income Stream
Thus the present value is $699,000.

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Example 3 – Future Value Example 3 – Solution cont’d

If the rate of flow of income from an asset is

1000e0.02t, in millions of dollars per year, and if the
income is invested at 6% compounded continuously,
find the future value of the asset 4 years from now.
Solution:
The future value is given by

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Consumer’s Surplus Consumer’s Surplus

Suppose that the demand for a product is given by For example, some consumers would be willing to
p = f(x) and that the supply of the product is described by buy x3 units if the price were $p3.
p = g(x).

The price p1 where the graphs Those consumers willing to pay more than $p1 are
of these functions intersect benefiting from the lower price. The total gain for all
is the equilibrium price
(see Figure (a)). those consumers willing to pay more than $p1 is
called the consumer’s surplus, and under proper
As the demand curve shows, assumptions the area of the shaded region in Figure
some consumers (but not all) (a) represents this consumer’s surplus.
would be willing to pay more
than $p1 for the product.
Figure (a)
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Consumer’s Surplus Consumer’s Surplus

Looking at Figure (b), we see that if the demand Note that with equilibrium price p1 and equilibrium
curve has equation p = f (x), the consumer’s quantity x1, the product p1x1 is the area of the
surplus is given by the area between f(x) and the rectangle that represents the total dollars spent by
x-axis from 0 to x1, minus the area of the rectangle consumers and received as revenue by producers (see
denoted TR: Figure (b)).

Figure (b)

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Ex.4 – Consumer’s Surplus Example 4 – Solution cont’d

A product’s demand function is and its

supply function is p = x + 1, where p is the price per
unit in dollars and x is the number of units.
Find the equilibrium point and the consumer’s surplus
there.
Solution:
We can determine the equilibrium point by solving
the two equations simultaneously.
Thus the equilibrium quantity is 4 and the
equilibrium price is $5 (x = –12 is not a solution).

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Example 4 – Solution cont’d

Example 4 – Solution cont’d

The graphs of the supply and demand functions The consumer’s surplus is given by
are shown in Figure.

Figure c)

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Example 4 – Solution cont’d

Producer’s Surplus
When a product is sold at the equilibrium price,
some producers will also benefit, for they would
have sold the product at a lower price.
The area between the line
The consumer’s surplus is $4.22. p = p1 and the supply curve
(from x = 0 to x = x1) gives
the producer’s surplus
(see Figure (d)).

Figure (d)

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Producer’s Surplus Example 5 – Producer’s Surplus

Suppose that the supply function for x million units
If the supply function is p = g(x), the producer’s of a product is p = x2 + x dollars per unit. If the
surplus is given by the area between the graph of p = equilibrium price is $20 per unit, what is the
g(x) and the x-axis from 0 to x1 subtracted from p1x1, producer’s surplus?
the area of the rectangle shown in Figure (d).
Solution:
Because p = 20, we can find the equilibrium quantity
x as follows:
Note that p1x1 represents the total revenue at the
equilibrium point.

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Example 5 – Solution cont’d

Example 5 – Solution cont’d

The equilibrium point is x = 4 million units, p = The producer’s surplus is $50.67 million. See Figure.
$20. The producer’s surplus is given by

Figure

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Using Tables of Integrals Using Tables of Integrals cont’d

Chapter 3: Derivatives, Integrals and Chapter 3: Derivatives, Integrals and

Applications Applications
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Ex.6 – Fitting Integration Formulas Ex.7 – Fitting an Integration Formula

Evaluate Evaluate
(a) and (b)

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Integration by Parts Integration by Parts

Integration by parts is an integration technique that
uses a formula that follows from the Product Rule Integration by Parts Formula
for derivatives (actually differentials) as follows:

Rearranging the differential form and integrating

both sides give the following.

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Example 8 – Integration by Parts Integration by Parts

How can we select u and dv to make integration by parts
Evaluate work? As a general guideline, we do the following.

First identify the types of functions occurring in the problem in

the order
Logarithm, Polynomial (or Power of x), Radical, Exponential
Thus, in Example 1, we had x and ex, a polynomial and an
exponential.

Second, choose u to equal the function whose type occurs first

on the list; hence in Example 1 we chose u = x.

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Integration by Parts Ex.9 – A Tricky Integration by Parts

Then dv equals the rest of the integrand (and always Evaluate

includes dx) so that u dv equals the original
integrand.

The most obvious choices for u and dv are not always

the correct ones, as the next example shows.
Integration by parts may still involve some trial and
error.

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Example 9 – Solution cont’d

Example 9 – Solution cont’d

Set

Then

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Example 10 – Income Stream Example 10 – Solution

The present value of the piece of equipment is given
Suppose that the value of oil produced by a piece of by
oil extraction equipment is considered a continuous
income stream with an annual rate of flow (in dollars
per year) at time t in years given by

and that money is worth 8%, compounded The value of the first integral is
continuously.
Find the present value of the piece of equipment.

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Example 10 – Solution cont’d

Example 10 – Solution cont’d

The second of these integrals can be evaluated by

using integration by parts, with u = t and dv = e–0.08t
dt. Thus the sum of the integrals is
Then du = 1 dt and and this integral is
so the present value of this piece of equipment is
$1,990,325.81.

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Exercises cont’d

Pages: 823-824
1-36;

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