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Assignment 9

1. The document provides examples of how to calculate marginal functions related to revenue, costs, and profit using integration. It gives the formulas for total revenue, marginal revenue, marginal cost, average cost and how they are related. 2. It then gives three application questions as examples: 1) finding the total cost function given marginal cost. 2) Finding the profit function given marginal revenue and cost functions. 3) Finding average cost of producing a given number of units using the rate of change of average cost. 3) The key steps involve taking the integral of the marginal functions to find the total/average functions, using initial conditions to determine constants of integration, and then evaluating the functions for the desired values.

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Maaz Satti
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© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
54 views

Assignment 9

1. The document provides examples of how to calculate marginal functions related to revenue, costs, and profit using integration. It gives the formulas for total revenue, marginal revenue, marginal cost, average cost and how they are related. 2. It then gives three application questions as examples: 1) finding the total cost function given marginal cost. 2) Finding the profit function given marginal revenue and cost functions. 3) Finding average cost of producing a given number of units using the rate of change of average cost. 3) The key steps involve taking the integral of the marginal functions to find the total/average functions, using initial conditions to determine constants of integration, and then evaluating the functions for the desired values.

Uploaded by

Maaz Satti
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Assignment

Find the integerals of Following

1. y  123e 4x

2. y  6x  2

 x
3. I   sin xdx
0

1
Assignment: Hints
Application: Marginal Functions(Revenue, Costs and Profit)
Marginal means the increase or decrease in the total cost of a production run
for making one additional unit of an item. 

Calculating Marginal Functions using fol two


differentiation formulae:
• Total Revenue (TR) = TR(x) = P x Or pQ

d  TR 
• Marginal Revenue MR  & TR(x) = ∫ MR
dQ
• Marginal Cost MC  d  TC 
& TCost(x)=∫ MC dx
• dQ
• Average Cost = AC 
 TC 
Q
d  AC 
 0, i, e, slope, m  0
dQ
Applications of the Indefinite Integral in
Business and Economics

Q 1. The monthly marginal cost for a product is MC = (x+30), fixed


costs are $50, and find the total cost function for the month.
Cost(x) = ∫ MC dx
you will use that the cost is the anti-derivative of the marginal cost, and
then used the fixed cost to find the value of the constant
Cost(x) = ∫ (x + 30) dx
Cost(x) = x2 /2 + 30x + c
Now find C by putting cost & x = 0 in above equation, then put value of C in above equation to find cost
Q 2. The marginal revenue function for a product is
MR = (44 - 5x). The marginal cost is MC = (3x + 20), and
the cost of producing 80 units is $11400.
(a) Find the profit function:
Here, we are given information about revenue and cost,
but are asked about profit, so we will need to find the
revenue and cost functions, and then use P = R - C to
find the profit function.. R(x) = ∫MR dx
R(x) = ∫(44 - 5x) dx = [44x – 5 x2/2 + c]
Now find C by putting R & x = 0 in above equation, then put value of C in above equation to find
Revenue R(x)
Find Cost(x) = ∫(3x + 20) dx
Cost(x) = 3 (x2 /2) + 20x + c
Now find C by putting x = 80 in above equation, then put value of C in above equation to find Cost C(x)

Now at x = 80 and Cost(80) = 11400


Now find P(x) = ?
now we have R(X) = [44x - 5 x2/2] & C(x) = [3 x2/2 + 20x + 200]
P(x) = R(x) – C(x)
P(x) =
(b) Find the profit or loss from selling x=100 units:

If We have P(x) = 24x – 4x2 – 200


3. The average cost of a product changes at the rate C(x) = (-6x-2
+ 1/6 ). Average cost of 6 units is 10.
Find the average cost of producing 12 units.
Cost(x) = ∫(-6x-2 + 1/6 ) dx
First integerate then find C by putting C(10) = 10 and x = 6 in above equation, then put
value of C in above equation to find

Cost(12) = ?

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