St Paul’s University

CALCULUS
Lecture Notes:
 Mathematical Functions
 Differentiation
 Integration

Robert Abayo Ouko

[November 2015]
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Contents
OVERVIEW OF CALCULUS.......................................................................................................................... 3
Topics covered ...................................................................................................................................... 3
Functions ............................................................................................................................................... 4
Functional Notations ............................................................................................................................. 5
Dependent and Independent Variables ................................................................................................ 5
Graphs of Functions .............................................................................................................................. 5
Rates of Change .................................................................................................................................... 7
DIFFERENTIAL CALCULUS (THE DERIVATIVE) ............................................................................................ 8
Further Differentiation Techniques .................................................................................................... 10
Derivative Formulae:........................................................................................................................... 10
Higher Order Derivatives .................................................................................................................... 13
Application of the Derivative to Management problems ................................................................... 13
Identification of Maxima and Minima ................................................................................................ 14
Curve Sketching................................................................................................................................... 16
Revenue, Cost and Profit Applications................................................................................................ 16
Maximizing Revenue ........................................................................................................................... 16
Minimizing Average Cost .................................................................................................................... 17
Maximizing Profit ................................................................................................................................ 18
INTEGRAL CALCULUS (INTEGRATION)..................................................................................................... 20
Definition of Indefinite Integral .......................................................................................................... 20
Computing Indefinite Integrals .......................................................................................................... 21
The Value of constant C ...................................................................................................................... 22
Definition of Definite Integrals ........................................................................................................... 23
Computing Definite Integrals ............................................................................................................. 24
Application in Business ....................................................................................................................... 26

Lecture Notes
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OVERVIEW OF CALCULUS
 Calculus is derived from a Latin word calculus, meaning a small stone used for counting.
 It is a branch of mathematics focused on limits, functions, derivatives, integrals, and infinite
series. In this course we will focus only on the first four topics.
 This subject constitutes a major part of modern mathematics education. It has two major
components, differential calculus and integral calculus,
 . Calculus essentially is the study of change, or rate of change. A course in calculus is a gateway
to other, more advanced courses in mathematics devoted to the study of functions and limits,
broadly called mathematical analysis. Calculus has widespread applications in science,
economics, and engineering and can solve many problems for which algebra alone is
insufficient.

Topics covered

1. Functions

2. Differential Calculus

3. Integral Calculus

Lecture Notes
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Functions

 Functions are fundamental to the study of Calculus. Almost the entire study involves
functions and how we manipulate them to get desired solutions.
 As we study functions, it is assumed that the students are familiar with equations and
inequalities and the various operations that can be performed on equations.
 Functions can be described as tools for describing the real world in mathematical terms.
Let’s look at a few examples of how functions can be represented:
o Functions can be represented as an Equation. Here we have an expression that
has two parts separated by an equal sign e.g. 𝒚 = 𝟓𝒙 + 𝟑
o Functions can be expressed graphically, where the solution set to the equation is
represented by a curve on the Cartesian plane (𝑡ℎ𝑒 𝑥 − 𝑦 𝑎𝑥𝑖𝑠).
o Functions can also be represented using NUMERIC table. There is nothing special
about this table, it’s just a tabulation of the 𝑥 𝑎𝑛𝑑 𝑦 𝑐𝑜𝑟𝑑𝑖𝑛𝑎𝑡𝑒 points on the
Cartesian plane that would satisfy the equation
o .A function can also be given a verbal description. This description will describe
how the variables are related to each other.
 A function is a rule (a process or method) that produces a correspondence between two
sets of elements such that to each element in the first set there corresponds one and
only one element in the second set, i.e. there can be a one-one correspondence or a
many-one correspondence only.
 The first set here is called the Domain and the second set onto which there is a
correspondence is called the Range.
 One can therefore say that a function is a relationship that maps elements of the
Domain onto the elements of the range.
Consider the functions:
i. 𝑦 = 5𝑥 − 3
ii. 𝑦 = √4 − 7𝑡

CASE 1: 𝒚 = 𝟓𝒙 − 𝟑

We note here that 𝑥 can take any Real number and the function will be valid. Thus the function
5𝑥 − 3 = 𝑦 is valid for all Real numbers. The variable y can also take any Real number, thus the
Domain and Range of this function is the entire set of Real numbers (−∞, ∞)

CASE 2: 𝒚 = √𝟒 − 𝟕𝒙

In this case, the RHS (√𝟒 − 𝟕𝒙 ) is valid only as long as the value under the square root is
positive, as we are not dealing with square roots of negative numbers in this course.

Lecture Notes
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For the value under the square root to be positive means that:
4 − 7𝑥 ≥ 0
4 7
4 ≥ 7𝑥 ⟹ ≥ 𝑥 𝑜𝑟 𝑥 ∈ (−∞, ]
7 4
𝟕
So, the domain of this function will be the set of values for which x is valid, i.e. (−∞, 𝟒]
Note the Square bracket on the right hand side.
The Range of this function will be the values that the square root can take. We note that for any
number, the square root can be both a positive or negative number. Therefore the Range for
this function will be:
(−∞, ∞)
Practice Questions:
Find the domain and Ranges for these functions:
1
i. 𝑦=𝑥
1
ii. 𝑦 = 𝑥+1
3
iii. 𝑦 = √(𝑡 − 2)

Functional Notations
For any element 𝑥 in the domain of the function 𝑓, the symbol 𝑓(𝑥) represents the element in the range
of 𝑓 corresponding to 𝑥 in the domain of 𝑓.

Diagrammatically:

Input (from DOMAIN) 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛 𝑓(𝑥) Output (In Range)

𝑥 𝑦 = 𝑓(𝑥)

 If 𝑥 is an input value, then 𝑓(𝑥) is the corresponding output value

 If 𝑥 is not in the domain of 𝑓, then 𝑓 is NOT DEFINED at 𝑥 and 𝑓(𝑥) does not exist at that point.

Dependent and Independent Variables

Let 𝑓(𝑥) = 𝑦 be a function. Then 𝑥 and 𝑦 are referred to as variables since they can assume different
values. 𝑥 is referred to as the independent variable and 𝑦 as the dependent variable.

The value assumed by the dependent variable actually depends on the value assumed by the
independent variable, hence the term “dependent”.

If one independent variable corresponds to more than one dependent variable, then the relationship is
not referred to as a function. For a relation to be a function, there must be either a one-to–one or a
many to one correspondence between the variables.

Graphs of Functions
If 𝑥 is a function defined in some domain D, then the graph of 𝑓 consists of points in the Cartesian plane
(𝑥 − 𝑦 𝑝𝑙𝑎𝑛𝑒) whose coordinates are the input-output pairs for 𝑓: (𝑥, 𝑓(𝑥)).

Lecture Notes
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For most functions, the steps to drawing a sketch of a graph are as follows:

1. Choose a representative collection of numbers 𝑥 in the domain of 𝑓 and construct a table of

function values 𝑦 = 𝑓(𝑥) for those numbers.
2. Plot the corresponding points (x,y) on a rectangular coordinate system (Cartesian plane)
3. Connect the plotted points with a smooth curve.

𝑦 = 𝑓(𝑥) ----------- (𝑥, 𝑓(𝑥))

0 x x

For example, consider the function 𝑦 = 𝑓(𝑥) = 𝑥 2

1. Consider the domain of f where −2 ≤ 𝑥 ≤ 2

𝒙 𝒚 = 𝒇(𝒙) = 𝒙𝟐

-2 4

-1 1

0 0

1 1

1.5 2.25

2 4

2. Plot these points on a Cartesian plane:

y

𝑦 = 𝑥2

-2 0 2 x
Please note that while sketching, it is important to remember that the axes and the equation of
the graph’s function must be shown on the graph

Lecture Notes
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Rates of Change
Consider a function, f(x), that represents some quantity that varies as x varies. For instance, maybe 𝑓(𝑥)
represents the amount of water in a holding tank after x minutes.
Or maybe f(x) is the distance traveled by a car after x hours. In both of these example we used x to
represent time. Of course x doesn’t have to represent time, but it makes for examples that are easy to
visualize.
What we want to do here is determine just how fast f(x) is changing at some point, say x = a.
This is called the instantaneous rate of change or sometimes just rate of change of f(x) at x = a.
As with the tangent line problem all that we’re going to be able to do at this point is to estimate the rate
of change. So let’s continue with the examples above and think of f(x) as something that is changing in
time and x being the time measurement. Again x doesn’t have to represent time but it will make the
explanation a little easier. While we can’t compute the instantaneous rate of change at this point we can
find the average rate of change.
To compute the average rate of change of f(x) at x = a all we need to do is to choose another point, say
x, and then the average rate of change will be,
𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑓(𝑥)
𝐴𝑅𝐶 = 
𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑥
𝑓(𝑥) − 𝑓(𝑎)
= 
𝑥−𝑎
Then to estimate the instantaneous rate of change at x = a all we need to do is to choose values of x
getting closer and closer to x = a (don’t forget to choose them on both sides of x = a) and compute
values of A.R.C. We can then estimate the instantaneous rate of change from that.
Consider a second example:
Suppose that the amount of air in a balloon after t hours is given by
𝑉 (𝑡) = 𝑡 3 − 6𝑡 2 + 35
Estimate the instantaneous rate of change of the volume after 5 hours.

Solution
The first thing that we need to do is get a formula for the average rate of change of the volume.
In this case this is,
𝑉(𝑡) − 𝑉(5) (𝑡 3 − 6𝑡 2 + 35) − (53 − 6(52 ) + 35)
𝐴𝑅𝐶 = = 
𝑡−5 𝑡−5
(𝑡 3 − 6𝑡 2 + 35) − (125 − 150 + 35)
= 
𝑡−5
𝑡 3 − 6𝑡 2 + 25
= 
𝑡−5
To estimate the instantaneous rate of change of the volume at t = 5 we just need to pick values of t that
are getting closer and closer to t = 5. Here is a table of values of t and the average rate of change for
those values.
𝒕 𝑨𝑹𝑪 𝒕 𝑨𝑹𝑪
6 25.0 4 7.0
5.5 19.75 4.5 10.75
5.1 15.91 4.9 14.11

Lecture Notes
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5.01 15.0901 4.99 14.9101

5.001 15.009001 4.999 14.991001
5.0001 15.00090001 4.9999 14.99910001

So, from this table it looks like the average rate of change is approaching 15 and so we can estimate that
the instantaneous rate of change is 15 at this point.
In both cases we wanted to take a second point away from 𝑥 = 𝑎. We want to move and then define
our new point based on that decision. So, if we want to move a distance of h from 𝑥 = 𝑎 new point
would be 𝑥 = 𝑎 + 𝒉
As we saw in our work above it is important to take values of x that are both sides of x = a. This way of
choosing new value of x will do this for us.
 If h>0 we will get value of x that are to the right 𝑥 = 𝑎
 If h<0 we will get values of x that are to the left of 𝑥 = 𝑎.
𝑓(𝑥)−𝑓(𝑎)
Now, with this new way of getting a second x, 𝐴𝑅𝐶 = will become,
𝑥−𝑎
𝒇(𝒙 + 𝒉) − 𝒇(𝒙)
𝑨𝑹𝑪 =
𝒉
This is much easier to deal with than the first ARC.

DIFFERENTIAL CALCULUS (THE DERIVATIVE)

Recall the computation of the slope of a tangent line and the Instantaneous Rate of Change:

We evaluate the function, called the QUOTIENT, as the value of the variable 𝑥 approaches 𝑎

𝑓(𝑥) − 𝑓(𝑎)
𝑥−𝑎
Which we modified to

𝑓(𝑥 + ℎ) − 𝑓(𝑥)
ℎ
𝐵𝑦 𝑡𝑎𝑘𝑖𝑛𝑔 2 𝑝𝑜𝑖𝑛𝑡𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑙𝑖𝑛𝑒: (𝑥, 𝑥 + ℎ)𝑖𝑛 𝑝𝑙𝑎𝑐𝑒 𝑜𝑓 (𝑎, 𝑥) 𝑎𝑛𝑑 𝑒𝑣𝑎𝑙𝑢𝑎𝑡𝑖𝑛𝑔 𝑎𝑠 ℎ 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ𝑒𝑠 0

This is called the DERIVATIVE and the process of finding the derivative is called DIFFERENTIATION.

The derivative of the function 𝑓(𝑥) with respect to x is denoted 𝑓’(𝑥), and is defined as:

𝑓(𝑥 + ℎ) − 𝑓(𝑥)
𝑓 ′ (𝑥) = lim
ℎ→0 ℎ
If it exists
This is called finding the derivative of the function from First Principles.
 If 𝑓 ′ (𝑥0 ) exists, then we say that the function 𝑓(𝑥) is differentiable at the point 𝑥0

Lecture Notes
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Example:

If 𝑓(𝑥) = 4𝑥 2 find 𝑓 ′ (𝑥) and evaluate it at 𝑥 = 3

Solution:

𝑓(𝑥 + ℎ) − 𝑓(𝑥)
𝑓 ′ (𝑥) = lim
ℎ→0 ℎ
2
4(𝑥 + ℎ) − 4𝑥2
𝑓 ′ (𝑥)
= lim
ℎ→0 ℎ
2
4 (𝑥2 + 2𝑥ℎ + ℎ ) − 4𝑥2
𝑓 ′ (𝑥)
= lim
ℎ→0 ℎ
2
4𝑥2 + 8𝑥ℎ + 4ℎ − 4𝑥2
𝑓 ′ (𝑥) = lim
ℎ→0 ℎ
2ℎ(4𝑥 + 2ℎ)
𝑓 ′ (𝑥) = lim
ℎ→0 ℎ
As ℎ becomes smaller and smaller, the value of 2h becomes minimal (nearer 0 as to be insignificant).
Thus the solution becomes:

𝒇′ (𝒙) = 𝟐(𝟒𝒙) = 𝟖𝒙

Now to find 𝑓 ′ (𝑥) 𝑎𝑡 𝑥 =3

𝑓 ′ (3) = 8(3) = 24
Notes:
 Do not plug in the values of h=0 in the function before you have simplified and factored the
numerator and denominator if need be.
 Be careful with the signs when opening the brackets
 Other notations for the derivative are:
𝑑(𝑓(𝑥)) 𝑑𝑦
o 𝑦′ , , 𝐷𝑥 𝑦, 𝐷𝑥 𝑓(𝑥),
𝑑𝑥 𝑑𝑥
𝑑𝑦 Δ𝑦
o = lim∆𝑥→0
𝑑𝑥 Δ𝑥

Examples to try:

Find the derivatives of the following functions:

𝑥
a) 𝑓(𝑥) =
𝑥+1
b) 𝑓(𝑥) = 3𝑥 − 1
c) 𝑓(𝑥) = 400𝑥 − 𝑥 2
Lecture Notes
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d) 𝑓(𝑥) = 3𝑥 2 + 2𝑥
i. Find the derivative at any point (𝑥, 𝑓(𝑥))
ii. Find the slope of the tangent to the curve at point (1,5)
iii. Find the equation of this tangent line.
Finding derivatives by use of the limit technique is called differentiating from first
principles.
Knowledge that the slope is a positive number in an interval tells us that the function is
increasing on that interval (i.e. a point moving on that graph of the function rises as it
moves to the right of that interval). Here the curve has a positive gradient over that interval.

Positive Gradient Negative Gradient

If the slope is a negative number in an interval then the function is a decreasing function on
that interval. The curve will have a negative gradient over that interval.

Further Differentiation Techniques

Using the limit to calculate the derivatives can be cumbersome for more complex functions. There
are several formulae and properties that can be used to simplify the work and aid in finding the
derivatives of functions.

Derivative Formulae:

1. Power of x Rule
If 𝑓(𝑥) = 𝑥 𝑛 , 𝑤ℎ𝑒𝑟𝑒 𝑛 𝑖𝑠 𝑎𝑛𝑦 𝑟𝑒𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟, 𝑡ℎ𝑒𝑛 𝒇′ (𝒙) = 𝒏𝒙𝒏−𝟏
Example:
𝑓(𝑥) = 3𝑥 3 , 𝑡ℎ𝑒𝑛 𝑓 ′ (𝑥) = 3(3)𝑥 3−1 = 9𝑥 2

2. Constant Function Rule

If 𝑓(𝑥) = 𝑐, 𝑤ℎ𝑒𝑟𝑒 𝑐 𝑖𝑠 𝑎 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡, 𝑡ℎ𝑒𝑛 𝑓 ′ (𝑥) = 0
Example:
𝑓(𝑥) = 35, 𝑡ℎ𝑒𝑛 𝒇′ (𝒙) = 𝟎

3. Coefficient Rule
If 𝑓(𝑥) = 𝑐𝑢(𝑥), 𝑤ℎ𝑒𝑟𝑒 𝑐 𝑖𝑠 𝑎 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑎𝑛𝑑 𝑢(𝑥)𝑖𝑠 𝑎 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑥

Lecture Notes
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Then 𝒇′ (𝒙) = 𝒄𝒖′ (𝒙) 𝑤ℎ𝑒𝑟𝑒 𝑢′ (𝑥) 𝑖𝑠 𝑡ℎ𝑒 𝑑𝑒𝑟𝑖𝑣𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑢(𝑥).

Example:
𝑓(𝑥) = 5𝑥 2 , 𝑡ℎ𝑖𝑠 𝑐𝑎𝑛 𝑏𝑒 𝑒𝑥𝑝𝑟𝑒𝑠𝑠𝑒𝑑 𝑎𝑠 5𝑢(𝑥)𝑤ℎ𝑒𝑟𝑒 𝑢(𝑥) = 𝑥 2
𝑢′ (𝑥) = 2𝑥, 𝑎𝑛𝑑 𝑡ℎ𝑒𝑟𝑒𝑓𝑜𝑟𝑒 𝑓 ′ (𝑥) = 5(2𝑥) = 10𝑥

4. Sum/Difference Rule
If 𝑓(𝑥) = 𝑢(𝑥) ± 𝑣(𝑥), 𝑤ℎ𝑒𝑟𝑒 𝑢(𝑥)𝑎𝑛𝑑 𝑣(𝑥)𝑎𝑟𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡𝑖𝑎𝑏𝑙𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑠 𝑜𝑓 𝑥
Then 𝒇′(𝒙) = 𝒖′ (𝒙) ± 𝒗′(𝒙)
Example:
Let 𝑓(𝑥) = 3𝑥 3 − 4𝑥 2 . 𝐿𝑒𝑡 𝑢(𝑥) = 3𝑥 3 𝑎𝑛𝑑 𝑣(𝑥) = 4𝑥 2 .
𝑡ℎ𝑒𝑛 𝑢′ (𝑥) = 9𝑥 2 𝑎𝑛𝑑 𝑣′(𝑥) = 8𝑥
Hence 𝑓 ′ (𝑥) = 𝑢′ (𝑥) + 𝑣 ′ (𝑥) = 9𝑥 2 − 8𝑥

5. Product Rule

If 𝑓(𝑥) = 𝑢(𝑥)𝑣(𝑥), 𝑤ℎ𝑒𝑟𝑒 𝑢(𝑥)𝑎𝑛𝑑 𝑣(𝑥)𝑎𝑟𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡𝑖𝑎𝑏𝑙𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑠 𝑜𝑓 𝑥

Then 𝒇′ (𝒙) = 𝒖(𝒙)𝒗′(𝒙) + 𝒗(𝒙)𝒖′(𝒙)
Example:

Let 𝑓(𝑥) = (3𝑥 2 + 1)(2𝑥 3 − 5), 𝑝𝑢𝑡 𝑢(𝑥) = (3𝑥 2 + 1) 𝑎𝑛𝑑 𝑣(𝑥) = (2𝑥 3 − 5)

Then 𝒖′ (𝒙) = 𝟔𝒙 𝒂𝒏𝒅 𝒗′ (𝒙) = 𝟔𝒙𝟐 , 𝒖𝒔𝒊𝒏𝒈 𝒕𝒉𝒆 𝒄𝒐𝒆𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒕 𝒂𝒏𝒅 𝑷𝒐𝒘𝒆 𝒓𝒖𝒍𝒆𝒔

So that 𝒇′ (𝒙) = (3𝑥 2 + 1)6𝑥 2 + (2𝑥 3 − 5)6𝑥 = 6𝑥[𝑥(3𝑥 2 + 1) + (2𝑥 3 − 5)]

6. Quotient Rule
𝑢(𝑥)
If 𝑓(𝑥) = 𝑣(𝑥)
, 𝑤ℎ𝑒𝑟𝑒 𝑢(𝑥) 𝑎𝑛𝑑 𝑣(𝑥) 𝑎𝑟𝑒 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡𝑖𝑎𝑏𝑙𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑠 𝑜𝑓 𝑥 𝑎𝑛𝑑 𝑣(𝑥) ≠ 0
𝒗(𝒙)𝒖′ (𝒙)−𝒖(𝒙)𝒗′ (𝒙)
Then 𝒇′ (𝒙) =
[𝒗(𝒙)]𝟐
Example
𝒙𝟑 + 𝟏
𝒇(𝒙) =
𝒙𝟐
Let 𝒖(𝒙) = 𝒙𝟑 + 𝟏, 𝒕𝒉𝒆𝒏 𝒖′ (𝒙) = 𝟑𝒙𝟐 𝒂𝒏𝒅 𝒗(𝒙) = 𝒙𝟐 , 𝒕𝒉𝒆𝒏 𝒗′ (𝒙) = 𝟐𝒙
Using the formula:
′ (𝑥)
𝑣(𝑥)𝑢′ (𝑥) − 𝑢(𝑥)𝑣 ′ (𝑥)
𝑓 =
[𝑣(𝑥)]2
′ (𝑥)
𝑥 (3𝑥 ) − (𝑥 3 + 1)2𝑥
2 2
𝑓 =
[𝑥 2 ]2
3𝑥 4 − 2𝑥 4 − 2𝑥 𝑥(𝑥 3 − 2) 𝑥 3 − 2
𝑓 ′ (𝑥) = = =
𝑥4 𝑥4 𝑥3
7. Chain Rule
Recall the composite functions:

Lecture Notes
 12

If 𝑓(𝑥) 𝑎𝑛𝑑 𝑔(𝑥) 𝑎𝑟𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛𝑠, 𝑡ℎ𝑒𝑛 𝑡ℎ𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛 𝑓𝑜𝑔(𝑥) read as f of g of x, is
the composite function f of g of x.
This means that we first find the function g(x) and use this as the domain of the
function f.
That is 𝑓𝑜𝑔(𝑥) = 𝑓[𝑔(𝑥)]
Now to find the derivatives of such functions we use the Chain rule:
If 𝑦 = 𝑓(𝑢) 𝑎𝑛𝑑 𝑢 = 𝑔(𝑥), 𝑡ℎ𝑒𝑛 𝑦 𝑖𝑠 𝑎 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡𝑖𝑎𝑏𝑙𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑥. The differentiation
of y is given by:
𝒅(𝒇(𝒖)) 𝒅(𝒈(𝒙)) 𝒅𝒚 𝒅𝒖
𝒚′ = 𝒇′ (𝒙) = ∗ = ∗
𝒅𝒖 𝒅𝒙 𝒅𝒖 𝒅𝒙
Example:
Let 𝑦 = 𝑓(𝑥) = √𝑥 2 − 1
1
To find𝑓 ′ (𝑥), 𝑙𝑒𝑡 𝑦 = √𝑝 = 𝑝2 , 𝑤ℎ𝑒𝑟𝑒 𝑝 = 𝑥 2 − 1
𝑦 = 𝑓(𝑝) 𝑎𝑛𝑑 𝑝 = 𝑔(𝑥)
𝑑𝑦 1 1−1
= 𝑝2 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑝𝑜𝑤𝑒𝑟 𝑟𝑢𝑙𝑒
𝑑𝑝 2
𝑑𝑝
𝑎𝑛𝑑 = 2𝑥, 𝑢𝑠𝑖𝑛𝑔 𝑡ℎ𝑒 𝑝𝑜𝑤𝑒𝑟 𝑟𝑢𝑙𝑒
𝑑𝑥
𝑑𝑦 𝑑𝑦 𝑑𝑝 1 1 1 1 𝑥
Thus 𝑑𝑥 = 𝑑𝑝 ∗ 𝑑𝑥 = 2 𝑝2−1 ∗ 2𝑥 = 2 (𝑥 2 − 1)−2 ∗ 2𝑥 = √𝑥 2
−1

𝒙
Thus 𝒇′ (𝒙) =
√𝒙𝟐 −𝟏

8. Power Rule for Composite functions

If 𝑦 = [𝑢(𝑥)]𝑛 , 𝑤ℎ𝑒𝑟𝑒 𝑢 𝑖𝑠 𝑎 𝑑𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑡𝑖𝑎𝑏𝑙𝑒 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑥
Then
𝒅𝒚 𝒅𝒖
𝒚′ = = 𝒏[𝒖(𝒙)]𝒏−𝟏
𝒅𝒙 𝒅𝒙
Example:
Let 𝑦 = (𝑥 2 − 4𝑥)6 .
𝑑𝑢
𝐻𝑒𝑟𝑒 𝑙𝑒𝑡 𝑢(𝑥) = 𝑥 2 − 4𝑥. 𝑇ℎ𝑒𝑛 𝑢′ (𝑥) = = 2𝑥 − 4, 𝑎𝑛𝑑 𝑦 = 𝑢6
𝑑𝑥
And

𝑑𝑦 𝑑𝑦
= 6𝑢5 , 𝑡ℎ𝑒𝑟𝑒𝑓𝑜𝑟𝑒 = 6𝑢5 (2𝑥 − 4) = 6(𝑥 2 − 4𝑥)5 (2𝑥 − 4)
𝑑𝑢 𝑑𝑥

Lecture Notes
 13

Higher Order Derivatives

The Derivative of a function is itself a function. Thus we can find its derivative.

The derivative of the first derivative is called a second derivative. This is found by differentiating the
function twice. Now if

𝑓 ′ (𝑥) 𝑟𝑒𝑝𝑟𝑒𝑠𝑒𝑛𝑡𝑠 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 𝑑𝑒𝑟𝑖𝑣𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑎 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛,

𝒇′′ (𝒙) 𝑟𝑒𝑝𝑟𝑒𝑠𝑒𝑛𝑡𝑠 𝑡ℎ𝑒 𝑠𝑒𝑐𝑜𝑛𝑑 𝑑𝑒𝑟𝑖𝑣𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑡ℎ𝑎𝑡 𝑓𝑢𝑛𝑐𝑡𝑖𝑜𝑛.

Example:
If 𝑓(𝑥) = 3𝑥 3 − 4𝑥 2 + 5, 𝑓𝑖𝑛𝑑 𝑓 ′′ (𝑥).

Solution:
Given 𝑓(𝑥) = 3𝑥 3 − 4𝑥 2 + 5

Using the differentiation formulae:

𝑓′(𝑥) = 9𝑥 2 − 8𝑥

The second derivative will be

𝑓′′(𝑥) = 18𝑥 − 8

𝒅𝟐 𝒚
 The second derivative can also be denoted as 𝑜𝑟 𝒚′′
𝒅𝒙𝟐
 We can also have third, fourth and higher order derivatives, but these are beyond
the scope of this course.

Application of the Derivative to Management problems

Some examples of the practical uses of derivatives:
 The derivative can be used to determine the rates of change (velocity, marginal costs,
marginal revenue, marginal profits, rate of growth etc.)
 It can also be used to determine the gradient or slope of a curve at a point.
 It can also be used to determine when functions are maximized or minimized. Here
derivatives are used to determine the “turning points” of the graph of a function, so as to
determine when a curve reaches its highest or lowest points.
 Knowledge of whether a curve has a relative maximum or relative minimum is very helpful
in sketching its curve.
 The relative maximum of a function can be useful in determining the levels of production
that will maximize the profit functions and revenue functions, maximum dosage for certain
drugs, or maximum size for some changing populations…
 The relative minimum of an average cost function can be used to find the level of
production that will minimize the average cost per unit.

Lecture Notes
 14

Identification of Maxima and Minima

Derivatives can be used to determine the “turning points” of the graph of a function. This aids in
determining when a curve reaches its maximum (highest) or minimum (lowest) points.

 Knowledge of where a curve has its lowest or highest points is useful in curve sketching.
 Relative maximum of a function can be useful in determining the levels of production that will
maximize the profit functions and revenue functions. Other uses can be in finding the maximum
dosage for certain medications, maximum size of some changing population etc.
 Relative minimum of an average cost function can be used to find the level of production that
will minimize the average cost per unit.
 The Derivative 𝑓′(𝑥) can change signs only at values
of 𝑥 𝑤ℎ𝑒𝑟𝑒 𝑓 ′ (𝑥) = 0 𝑜𝑟 𝑓 ′ (𝑥)𝑖𝑠 𝑢𝑛𝑑𝑒𝑓𝑖𝑛𝑒𝑑.
 We call these values of x CRITICAL VALUES. The point corresponding to a critical value of x is
called a CRITICAL POINT.

If a function has a relative maximum (or minimum) at 𝑥 = 𝑥0 , then 𝑓′(𝑥0) = 0 𝑜𝑟 𝑓 ′ (𝑥0 )𝑖𝑠 𝑛𝑜𝑡 𝑑𝑒𝑓𝑖𝑛𝑒𝑑.

This fact is better illustrated graphically as in the following example:

Consider the graph of a function 𝑦 = 𝑓(𝑥)

𝑥1 𝑥2 𝑥3

 This function has a relative maximum at the point 𝑥 = 𝑥1 and a relative minimum at the point
𝑥 = 𝑥2
 We can find the relative maxima and relative minima for a curve by finding the values of x for
which the first derivative is zero or undefined. The behavior of the derivative to the left or to the
right (and near these values) will tell us if they are relative maxima or relative minima or neither.
 Suppose the point (𝑥1 , 𝑦1 ) is a critical point. If 𝑓′(𝑥) is positive to the left of, and near, this
critical point, then the curve is increasing to the left of the point; If the derivative is negative to
the right of, and near the point, then the curve is decreasing to the left of the point. This means
that a relative maximum occurs at the point.
 If we draw tangent lines to the curve to the left and to the right of this critical point they would
be as follows:
o To the left: 𝑓 ′ (𝑥) > 0

o To the right 𝑓′(𝑥) < 0

 Note that if 𝑓 ′ (𝑥1 ) = 0 then the tangent line is horizontal there.

Lecture Notes
 15

 Thus the tangent lines form the pattern:

And this indicates that the shape of the curve is

Thus we can summarize this as:

𝑓 ′ (𝑥) > 0 𝑓 ′ (𝑥) = 0 𝑓 ′ (𝑥) < 0

The reverse is true for a minimum point:

That is 𝑓 ′ (𝑥) < 0 𝑓 ′ (𝑥) = 0 𝑓 ′ (𝑥) > 0

Horizontal Point of Inflection

When the derivative 𝑓′(𝑥) does not change signs as x passes from one side of a critical point to the
other, the critical point is neither a maximum nor a minimum. It is called a point of inflection.

Procedure to find relative maxima or minima

1. First find the derivative of the function

2. Set the derivative equal to zero and solve for the value of x that satisfies 𝑓 ′ (𝑥) = 0 these are
called the critical values. Note that values that make 𝑓 ′ (𝑥) = 0 undefined are also called critical
values.
3. Substitute the critical values into the original function to find critical points.
4. Evaluate 𝑓 ′ (𝑥) at some value of x to the left and to the right of the critical value
a. If 𝑓 ′ (𝑥) > 0 𝑡𝑜 𝑡ℎ𝑒 𝑙𝑒𝑓𝑡 and 𝑓 ′ (𝑥) < 0 𝑡𝑜 𝑡ℎ𝑒 𝑟𝑖𝑔ℎ𝑡 of the critical value, then the
critical point is a relative Maximum
b. If 𝑓 ′ (𝑥) < 0 𝑡𝑜 𝑡ℎ𝑒 𝑙𝑒𝑓𝑡 and 𝑓 ′ (𝑥) > 0 𝑡𝑜 𝑡ℎ𝑒 𝑟𝑖𝑔ℎ𝑡 of the critical value then the critical
point is a relative Minimum.

Lecture Notes
 16

Curve Sketching
We can use the relative maxima and minima to aid in sketching the graph of functions. Once we have
the critical points we can tell the general shape of the curve and join the points to sketch the graph.

Revenue, Cost and Profit Applications

Marginal Revenue
 This is the rate of change of the Total Revenue. If the graph is linear, this becomes the slope of
the Total Revenue function graph. For any Total Revenue function, the Marginal Revenue will be
the instantaneous rate of change of the Total Revenue.
 Total Revenue function is usually denote R(x) or TR
 Marginal Revenue function is denoted MR or R’(x) or the differential of the Revenue function.

𝑹(𝒙 + 𝒉) − 𝑹(𝒙)
𝑴𝑹 = 𝑹′ (𝒙) = 𝐥𝐢𝐦
𝒉→𝟎 𝒉
 One can use the different differentiation rules to get MR depending on the nature of the Total
Revenue function.

Maximizing Revenue
Equating the Marginal Revenue to zero and solving for x gives us the level of production that would
maximize revenue. It is important to remember that the Marginal Revenue is the derivative of the Total
Revenue function.
It is also wise to confirm that the critical point (the point at which the Marginal Revenue =0) is indeed a
maximum point by using the second derivative test:
If second derivative at a point is less or equal to zero, then it is a maximum point.
For maximum point:
𝑹′ (𝒙) = 𝟎 𝒂𝒏𝒅 𝑹′′(𝒙) ≤ 𝟎
Example:
Let the Total Revenue be 𝑅(𝑥) = 16𝑥 − 0.02𝑥 2
Then Marginal Revenue is given by:
𝑅′(𝑥) = 16 − 0.04𝑥
Equating this to zero we have 𝑅(𝑥) = 16 − 0.04𝑥 = 0 ⟹ 16⁄0.04 = 𝑥 ⟹ 𝑥 = 400

Check if this is minimum or maximum:

𝑅′(𝑥) = 16 − 0.04𝑥

𝑑(𝑅 ′ (𝑥))
𝑅 ′′(𝑥) = = −0.04 < 0
𝑑𝑥

Hence this is a maximum point.

Marginal Cost
 This is the rate of change of the Total Cost. If the graph is linear, this becomes the slope of the
Total Cost function graph. For any Total Cost function, the Marginal Cost will be the
instantaneous rate of change of the Total Cost.

Lecture Notes
 17

 Total Cost function is usually denote C(x) or TC

 Marginal Cost function is denoted MC or C’(x) or the differential of the Cost function.

𝑪(𝒙 + 𝒉) − 𝑪(𝒙)
𝑴𝑪 = 𝑪′ (𝒙) = 𝐥𝐢𝐦
𝒉→𝟎 𝒉
 One can use the different differentiation rules to get MC depending on the nature of the Total
Cost function.
 The Marginal Cost can also be thought of as the Approximation of the cost of producing the
(𝑥 + 1)𝑡ℎ product.
 Note that Average Cost is given as the Total Cost divided by the number of items, i.e.
𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕𝒔 𝑪(𝒙)
o 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑪𝒐𝒔𝒕𝒔 = =
𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒊𝒕𝒆𝒎𝒔 𝒙
o This is not to be confused with the Marginal Cost.
Minimizing Average Cost
Since the total cost function is always increasing, we cannot find the number of units that will make the
total cost a minimum (except for producing 0 units, which is an absolute minimum).
However, we usually find the number of units that will make the average cost per unit minimum.
For Example:
If the Total Cost function is given by:
𝐶(𝑥) = 3𝑥 2 + 4𝑥 + 2
Then the Average Cost function is:
𝐶(𝑥) 3𝑥 2 + 4𝑥 + 2 2
= = 3𝑥 + 4 +
𝑥 𝑥 𝑥
To minimize this Average Cost function, we equate the differential of the cost function to zero and solve
it for x. This value of x will give the number of units that will minimize the average cost function.
i.e.
2
𝑑(3𝑥 + 4 + 𝑥 )
𝐴𝐶′(𝑥) =
𝑑𝑥
2
𝐴𝐶 ′ (𝑥) = 3 − 2 = 0
𝑥
Here we will get two values for the x variable, but note that the product cannot be negative hence we
take only the positive value.
2 2
Here 3 − 𝑥 2 = 0 means that 3 = 𝑥 2.
2 2
Hence 𝑥 2 = 3 𝑜𝑟 𝑥 = ± 3
2
Discard the negative and use the result 𝑥 = 3
Profit Function and Marginal Profit
 The Profit function is given as the Total Revenue less the Total Costs, i.e. 𝑻𝑹 − 𝑻𝑪 and is usually
denoted 𝑃(𝑥)
o Thus 𝑷(𝒙) = 𝑹(𝒙) – 𝑪(𝒙)
 The Marginal Profits is denoted 𝑷′ (𝒙).
o P’(x)= 𝑹′ (𝒙)– 𝑪′ (𝒙) = 𝑴𝑹 − 𝑴𝑪

Lecture Notes
 18

It is important to note the following:

 Total Costs can never be negative. Even at zero level of production there are costs to be covered
(the Fixed Costs).
 The Total Cost function is always increasing, i.e. the more units are produced, the more the cost
of production.
 Marginal Costs on the other hand are always positive, and its graph tends to be u-shaped
sloping to the left.
 Marginal Cost can be used as an approximation of the cost of producing the (𝑥 + 1)𝑡ℎ product
given the cost of production of the 𝑥 𝑡ℎ product.

Maximizing Profit
We may want to find the number of units whose production level would maximize the profits.

Now the profit function is given by 𝑃(𝑥) = 𝑅(𝑥) − 𝐶(𝑥)

To maximize this we take its derivative and equate it to zero and solve for x

So at Maximum profit 𝑷′ (𝒙) = 𝟎

Note that the derivative of the Profit Function is the MARGINAL PROFIT.

Examples:

The Total Cost in Kshs of producing x food processors is

𝐶(𝑥) = 2000 + 50𝑥 − 0.5𝑥 2

a) Find the exact cost of producing the 21st food product.

b) Use the Marginal Cost function to approximate the cost of producing the 21st food product
c) Determine the Marginal Average Cost function.

Solution:

a) The Exact cost of producing the 21st food processor is given by:
The Cost of producing the 21st product minus the cost of producing the 20th product
i.e. 𝐶(𝑥 + 1) − 𝐶(𝑥) = 𝐶(21) − 𝐶(20)
𝐶(𝑥) = 2000 + 50(21) − 0.5(21)2 − [2000 − 50(20) − 0.5(20)2
𝐶(𝑥) = 2000 + 1050 − 0.5(441) − [2000 + 1000 − 0.5(400)]
𝐶(𝑥) = 3050 − 220.5 − [3000 − 200] = 2829.50 − 2800 = 29.50
The Exact Cost of producing the 21st processor is Kshs 29.50

b) Given 𝐶(𝑥) = 2000 + 50𝑥 − 0.5𝑥 2 the Marginal Cost is given by:
The Marginal Cost is given by:

Lecture Notes
 19

𝐶(𝑥 + ℎ) − 𝐶(𝑥)
𝐶′(𝑥) = lim
ℎ→0 ℎ
[2000 + 50(𝑥 + ℎ) − 0.5(𝑥 + ℎ)2 ] − [2000 + 50𝑥 − 0.5𝑥 2 ]
𝐶′(𝑥) = lim
ℎ→0 ℎ
[2000 + 50𝑥 + 50ℎ − 0.5(𝑥 2 + 2𝑥ℎ + ℎ2 )] − [2000 + 50𝑥 − 0.5𝑥 2 ]
𝐶′(𝑥) = lim
ℎ→0 ℎ
[2000 + 50𝑥 + 50ℎ − 0.5𝑥 2 − 𝑥ℎ − 0.5ℎ2 ] − 2000 − 50𝑥 + 0.5𝑥 2 ]
𝐶′(𝑥) = lim
ℎ→0 ℎ
[50ℎ 2]
− 𝑥ℎ + ℎ ℎ(50 − 𝑥 + ℎ)
𝐶 ′ (𝑥) = lim = lim = 50 − 𝑥
ℎ→0 ℎ ℎ→0 ℎ
st
Therefore the cost of producing the 21 product is
𝑪′ (𝟐𝟎) = 𝟓𝟎 − 𝟐𝟎 = 𝟑𝟎
c) Marginal Average Cost function is given by:
The Differential of the Average Cost Function:
𝐶(𝑥) = 2000 + 50𝑥 − 0.5𝑥 2
𝐶(𝑥) 2000+50𝑥−0.5𝑥 2
Then the Average Cost function is 𝐴𝐶(𝑥) = =
𝑥 𝑥
𝐴𝐶(𝑥 + ℎ) − 𝐴𝐶(𝑥)
𝑀𝐴𝐶 = 𝐴𝐶 ′ (𝑥) = lim
ℎ→0 ℎ
2000
𝑀𝐴𝐶 = − − 0.5
𝑥2

For simple calculations use the rules of differentiation to solve these problems.

Practice Questions:

1. A firm in a competitive market must sell its produce for Kshs 200 per unit. The average cost per
unit is 𝐴𝐶 = 80 + 𝑥, where x represents the number of units sold each month. How many units
should be sold to maximize profits?
2. If the total cost function for a lamp is 𝐶(𝑥) = 25 + 13𝑥 + 𝑥 2 , producing how many units will
result in a minimum average cost per unit? Find the minimum average cost.
3. If the total cost function for a certain period for an item is 𝐶(𝑥) = 100 + 2𝑥 + 𝑥 2 and the total
revenue function is 𝑅(𝑥) = 36𝑥, how many items will produce a maximum profit? Find the
Maximum profit.
4. If the revenue function for a stereo system is:
𝑅(𝑥) = 300𝑥 − 𝑥 2 , 𝑤ℎ𝑒𝑟𝑒 𝑥 𝑑𝑒𝑛𝑜𝑡𝑒𝑠 𝑡ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑠𝑜𝑙𝑑.
a. What is the Marginal Revenue if:
i. 50 units are sold?
ii. 100 units are sold?
iii. 150 units are sold?
b. What happens when 150 units are sold?
5. If the total revenue for a personal computer is 𝑅(𝑥) = 88𝑥
And the total cost function is 𝐶(𝑥) = 3𝑥 2 + 40𝑥 + 200
a. What is the Marginal Profit function?
b. What is the Marginal Profit if 7 units are produced and sold

Lecture Notes
 20

INTEGRAL CALCULUS (INTEGRATION)

Topics to be covered in this area include:
 Definition of Indefinite Integrals
 Computing Indefinite Integrals
 Finding area under a curve using Integrals
 Definition of Definite Integrals
 Computing Definite Integrals
 Application of Integrals to Business Problems

Recap:

Consider a function 𝑦 = 𝑓(𝑥) = 𝑥 3 + 3𝑥 2 − 6𝑥 + 15

We may wish to find the derivative of this function as:
𝑑𝑦
= 3𝑥 2 + 6𝑥 − 6
𝑑𝑥
𝑑𝑦
Suppose we now want to get back to the original function from this derivative, i.e. find 𝑓(𝑥) 𝑓𝑟𝑜𝑚
𝑑𝑥

We use a technique called Integration.

Integration therefore is simply the reverse of differentiation. It is sometimes referred to as Anti-
derivative. Integration can be done in two ways: Indefinite Integrals or Definite Integrals

Definition of Indefinite Integral

Given a function 𝑦 = 𝑓(𝑥), the Integral of this function is given as:

𝐹(𝑥) + 𝑐 = ∫ 𝑓(𝑥)𝑑𝑥

Note the use of capital F on the left hand side.

 The function 𝐹(𝑥) is called Antiderivative of the function 𝑓(𝑥).
 The letter “c” is called the Constant of Integration and MUST always be present in the case of
Indefinite integrals.

 𝑓(𝑥) is called the Integrand and the symbol ∫ 𝑑𝑥 is the integral symbol. The 𝑑𝑥 is the
differential.

The process of finding the indefinite integral is called INTEGRATION or integrating the function 𝑓(𝑥).
Sometimes we use the phrase “integrating the function f(x) with respect to the variable x when there is
need to be specific about it.
It is important to remember that the integral expression is incomplete without the differential dx.

Lecture Notes
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Properties of Indefinite Integrals

The following properties apply to indefinite integrals and can be used to simplify their evaluation:

Let 𝑓(𝑥) 𝑎𝑛𝑑 𝑔(𝑥) be functions and 𝑘 is any constant.

1. ∫ 𝑘𝑓(𝑥)𝑑𝑥 = 𝑘 ∫ 𝑓(𝑥)𝑑𝑥
A constant can be factored out of the Integral for ease of evaluation of the integral, for example,

∫ 12𝑥 2 + 24)𝑑𝑥 = ∫ 12(𝑥 2 + 2)𝑑𝑥 = 12 ∫(𝑥 2 + 2)𝑑𝑥

2. ∫ −𝑓(𝑥)𝑑𝑥 = − ∫ 𝑓(𝑥)𝑑𝑥
This follows from No.1, where we replace 𝑘 𝑤𝑖𝑡ℎ − 1

3. ∫[𝑓(𝑥) ± 𝑔(𝑥)]𝑑𝑥 = ∫ 𝑓(𝑥)𝑑𝑥 ± ∫ 𝑔(𝑥)𝑑𝑥

This property is similar to the Sum Difference rule for differentiation. This can also be extended
to any number of functions.
Computing Indefinite Integrals
There are several methods of computing Indefinite integrals, but for purposes of this course we will look
at only two methods:
1. Power Rule of Integration
Let 𝑓(𝑥) be a function such that 𝑦 = 𝑓(𝑥) = 𝑥 𝑛 , then:
𝑥 𝑛+1
∫ 𝑥 𝑛 𝑑𝑥 = + 𝑐 = 𝐹(𝑥) + 𝑐
𝑛+1
The general rule is “Add one to the power of x and divide by this new power then add a
constant c to this”.
For example
Let 𝑓(𝑥) = 𝑥 3 ,
𝑥 3+1 𝑥4
𝑡ℎ𝑒𝑛 ∫ 𝑥 3 𝑑𝑥 = +𝑐 = +𝑐
3+1 4
Special Case:
When 𝑛 = −1, we cannot use this rule, so the integral is:
1
∫ 𝑥 −1 𝑑𝑥 = ∫ 𝑑𝑥 = ln|𝑥| + 𝑐
𝑥
When 𝑛 = 0 (𝑜𝑟 𝑦 = 𝑓(𝑥) = 𝑘)

∫ 𝑘𝑥 0 𝑑𝑥 = ∫ 𝑘𝑑𝑥 = 𝑘𝑥 + 𝑐

Lecture Notes
 22

2. Sum Difference Rule of Integration

Let f(x) and g(x) be functions, then

∫[𝑓(𝑥) ± 𝑔(𝑥)]𝑑𝑥 = ∫ 𝑓(𝑥)𝑑𝑥 ± ∫ 𝑔(𝑥)𝑑𝑥

For example:

2
3𝑥 2+1
2
2𝑥 1+1
∫[3𝑥 + 2𝑥]𝑑𝑥 = ∫ 3𝑥 𝑑𝑥 + ∫ 2𝑥𝑑𝑥 = [ + 𝑐1 ] + [ + 𝑐2 ]
2+1 1+1

∫[3𝑥 2 + 2𝑥]𝑑𝑥 = 𝑥 3 + 𝑥 2 + (𝑐1 + 𝑐2 )

PRACTICE QUESTIONS

1. ∫[4𝑥 3 10𝑥 2 − 4]𝑑𝑥

2. ∫[𝑥 2 − 3𝑥 −2 ]𝑑𝑥
3 5 1
3. ∫ [ √𝑥 + − ] 𝑑𝑥
2𝑥 √𝑥

4. ∫(2𝑥 3 + 𝑥 2 )𝑑𝑥
5. ∫(𝑥 4 + √𝑥 3 )𝑑𝑥
6. ∫(𝑥 3 + 2𝑥 5 − 3𝑥 4 − 3)𝑑𝑥
7. ∫(4𝑥 3 + 2𝑥 6 − 15𝑥 5 + 2𝑥)𝑑𝑥
8. ∫(𝑥 3 + 2𝑥 5 − 3𝑥 4 + 4)𝑑𝑥
2 1
9. ∫ (3 𝑥 3 + 𝑥 2 + 2𝑥 4 ) 𝑑𝑥

The Value of constant C

Sometimes we are given information which would allow us to establish the value of C.
This is where we are given the value of the dependent variable at a specified value of the independent
variable. For example for a function 𝑦 = 𝑓(𝑥), 𝐹(1) = 5 𝑚𝑒𝑎𝑛𝑠 𝑡ℎ𝑎𝑡 𝑤ℎ𝑒𝑛 𝑥 = 1, 𝑦 = 5, this allows
us to solve for C, the constant of integration. Note that we are using the value of the ANTIDERIVATIVE
F(x) and not the integrand f(x).

Example:
1⁄
Let 𝑓(𝑥) = 4𝑥 3 + 𝑥 2 + 2 𝑎𝑛𝑑 𝐹(1) = 5 𝑖𝑠 𝑔𝑖𝑣𝑒𝑛.

Integrate the function and find a value for C.

Lecture Notes
 23

Solution:

We want to calculate:

1 2 3
∫(4𝑥3 + 𝑥 ⁄2 + 2 )𝑑𝑥 = 𝑥4 + 𝑥 ⁄2 + 2𝑥 + 𝑐
3
But when x=1, this integral evaluates to 5, so
2 3 2
14 + 1 ⁄2 + 2(1) + 𝑐 = 5 ⟹ 1 + + 2 + 𝑐 = 5
3 3
2 2 4
𝑐 =5−3− =2− =
3 3 3
So that

1 2 3 4
∫(4𝑥3 + 𝑥 ⁄2 + 2 )𝑑𝑥 = 𝑥4 + 𝑥 ⁄2 + 2𝑥 +
3 3

Definition of Definite Integrals

Given a function 𝑦 = 𝑓(𝑥) 𝑑𝑒𝑓𝑖𝑛𝑒𝑑 𝑜𝑣𝑒𝑟 𝑠𝑜𝑚𝑒 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙 [𝑎, 𝑏], the Definite Integral of this function is
given as:
𝑏

𝐹(𝑏) − 𝐹(𝑎) = ∫ 𝑓(𝑥)𝑑𝑥

𝑎

Note the use of capital F on the left hand side.

 The function 𝐹(𝑥) is called Antiderivative of the function 𝑓(𝑥).
 The letter “a” at the bottom is called the lower limit of the integral,
 The letter “b” at the top is called the upper limit of the Integral
 𝑓(𝑥) is called the Integrand. The 𝑑𝑥 is the differential.

The process of evaluating the definite integral is similar to that of the Indefinite integral, only that in this
case we do not have the constant of integration “c”.
Consider the integral:
2
∫ (𝑥 2 + 1)𝑑𝑥 = 𝐹(2) − 𝐹(0)
0
𝑥3 𝑥3
Now ∫(𝑥 2 + 1)𝑑𝑥 = ( + 𝑥) + 𝑐 = 𝐹(𝑥) + 𝑐, 𝑤ℎ𝑒𝑟𝑒 𝐹(𝑥) = +𝑥
3 3
23 14
Then 𝐹(2) = 3
+2= 3
, 𝑎𝑛𝑑 𝐹(0) = 0

So that
𝟐
𝟏𝟒 𝟏𝟒
∫ (𝒙𝟐 + 𝟏)𝒅𝒙 = 𝑭(𝟐) − 𝑭(𝟎) = −𝟎=
𝟎 𝟑 𝟑

Lecture Notes
 24

Properties of Indefinite Integrals

The following properties apply to definite integrals and can be used to simplify their evaluation. Their
proof is beyond the scope of this course.

Let 𝑓(𝑥) 𝑎𝑛𝑑 𝑔(𝑥) be functions, 𝑎 𝑎𝑛𝑑 𝑏 are any real numbers.
𝑏 𝑎
1. ∫𝑎 𝑓(𝑥)𝑑𝑥 = − ∫𝑏 𝑓(𝑥)𝑑𝑥
Inverting the limits of integration has the effect of negating the integral, for example,
3 0

∫ 2𝑥𝑑𝑥 = 9 𝑎𝑛𝑑 ∫ 2𝑥𝑑𝑥 = −9

0 3
𝑎
2. ∫𝑎 𝑓(𝑥)𝑑𝑥 =0
The Integral at the same point results in Zero (if the Upper Limit equals the Lower Limit, the
integral evaluates to zero.
𝑏 𝑏
3. ∫𝑎 𝑘𝑓(𝑥)𝑑𝑥 = 𝑘 ∫𝑎 𝑓(𝑥)𝑑𝑥
Aa constant can be factored out of the integrand and this will not change the value of the
integral.
𝑏 𝑏 𝑏
4. ∫𝑎 [𝑓(𝑥) ± 𝑔(𝑥)]𝑑𝑥 = ∫𝑎 𝑓(𝑥) ± ∫𝑎 𝑔(𝑥) 𝑑𝑥
This property is similar to the Sum Difference rule for differentiation. This can also be extended
to any number of functions.
𝑏 𝑐 𝑏
5. ∫𝑎 𝑓(𝑥)𝑑𝑥 = ∫𝑎 𝑓(𝑥)𝑑𝑥 + ∫𝑐 𝑓(𝑥)𝑑𝑥
We can split the interval and evaluate the integrals so formed separately. The value of the
separating number need not be between the two limits.
𝑏 𝑏
6. ∫𝑎 𝑓(𝑥)𝑑𝑥 = ∫𝑎 𝑓(𝑡)𝑑𝑡
Changing the variable notation in the Integrand does not change the value of the integral
Computing Definite Integrals
Computing definite integrals is similar to computing indefinite integrals, the only difference is that we
must evaluate the Integral and leave the answer free of the variable and also the constant of
integration.
Consider the integral:
5
∫ 3𝑥 2 𝑑𝑥 = 𝐹(5) − 𝐹(1)
1

Lecture Notes
 25

3𝑥 3
Now ∫(3𝑥 2 )𝑑𝑥 = ( )+ 𝑐 = 𝐹(𝑥) + 𝑐, 𝑤ℎ𝑒𝑟𝑒 𝐹(𝑥) = 𝑥 3
3

Then 𝐹(5) = 5 ∗ 5 ∗ 5 = 125 𝑎𝑛𝑑 𝐹(1) = 1 ∗ 1 ∗ 1 𝑡ℎ𝑢𝑠 𝐹(5) − 𝐹(1) = 125 − 1 = 124
So that
𝟓
∫ 𝟑𝒙𝟐 𝒅𝒙 = 𝑭(𝟓) − 𝑭(𝟏) = 𝟏𝟐𝟓 − 𝟏 = 𝟏𝟐𝟒
𝟏

PRACTICE QUESTIONS
4
1. ∫0 [𝑥 2 + 5𝑥]𝑑𝑥
−5
2. ∫−10 3𝑥 2 𝑑𝑥
1
3. ∫0 [𝑥 3 − 7𝑥 2 ]𝑑𝑥
6
4. ∫1 [3𝑥 3 + 5𝑥 2 − 10𝑥 + 15]𝑑𝑥

Evaluation of integrals (Integration) can also be used to find the area under the graphs of a function, or
the area enclosed by the graphs of functions.

When we find the integral of indefinite integrals, we are finding the area under the curve over the entire
domain of the function, i.e. for all values of the independent variable for which the function is defined.
On the other hand, when integrating definite functions, we say we are integrating over some interval.

Consider the graph of the function 𝑦 = 𝑓(𝑥) = 𝑥 2 𝑜𝑣𝑒𝑟 𝑡ℎ𝑒 𝑑𝑜𝑚𝑎𝑖𝑛 [0, 9]

The graph of this function looks like this:

120
100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10

The area beneath the curve and enclosed by the x-axis can be obtained by taking the integral of the
function that the curve represents
9
93
𝐴𝑟𝑒𝑎 = ∫ 𝑥 2 𝑑𝑥 = 𝐹(9) − 𝐹(0) = − 0 = 243 𝑠𝑞 𝑢𝑛𝑖𝑡𝑠.
3
0

Lecture Notes
 26

In the case of area enclosed by two or more curves, consider the following example:
Let 𝑓(𝑥)𝑎𝑛𝑑 𝑔(𝑥) be two functions such that:

𝑓(𝑥) = √𝑥 𝑎𝑛𝑑 𝑔(𝑥) = 𝑥 2

We may be interested in finding the area enclosed by the two functions. It is prudent to first sketch the
graphs of the two functions on the same plane and use it to determine which of the graphs forms the
upper bound and which forms the lower bound.

The graph for the two functions above looks like this:

Area enclosed is obtained by taking the integral of the upper function minus the lower function as
follows:
𝐴𝑟𝑒𝑎 𝑠ℎ𝑎𝑑𝑒𝑑 = ∫{[𝑈𝑝𝑝𝑒𝑟 𝐹𝑢𝑛𝑐𝑡𝑖𝑜𝑛] − [𝐿𝑜𝑤𝑒𝑟 𝐹𝑢𝑛𝑐𝑡𝑖𝑜𝑛]} 𝑑𝑥

1 1 1 1

2 1/2 2
𝑥 2+1 𝑥 2+1 2 3/2
(1)3 1
𝐴𝑟𝑒𝑎 = ∫[√𝑥 − 𝑥 ]𝑑𝑥 = ∫[𝑥 − 𝑥 ]𝑑𝑥 = − | = ( (1) − )=
1 2+1 3 3 3
0 0 2+1 0

Application in Business
Integrals can be used in business and other disciplines like engineering, medicine etc. Integration can
also be used to find the Total Revenue or Total Cost functions where only the respective marginal
functions have been given. Recall that Marginal Cost is obtained by differentiating the Total Cost
function.
So
𝑻𝑪 = ∫ 𝑴𝑪 𝒅𝒙 𝒂𝒏𝒅 𝑻𝑹 = ∫ 𝑴𝑹 𝒅𝒙
It is important to remember that the constant term in the Cost function is the Fixed Costs and this will
be the Constant of Integration once we evaluate the Integration.

Lecture Notes
 27

Consider the following example:

A manufacturer has identified that his marginal cost of producing a unit of his product is given by:
𝑀𝐶 = 0.000003𝑥 2 − 0.003𝑥 − 240
And given that Total Costs are Kshs 112,500/- when no production is taking place, evaluate the
following:

i. The Total Cost function

ii. Number of units at which the total cost is minimized

Solution:

Marginal cost is obtained by taking the derivative of the Total Cost function. What we therefore need to
do is to integrate the Marginal Cost function so as to get the TC function.

𝑇𝐶 = ∫ 𝑀𝐶 𝑑𝑥 , 𝑤ℎ𝑒𝑟𝑒 𝑥 𝑖𝑠 𝑡ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠.

𝑇𝐶 = ∫[0.000003𝑥 2 − 0.003𝑥 − 240]𝑑𝑥 = 0.000001𝑥 3 − 0.001𝑥 2 − 240𝑥 + 𝑐

We are given that 𝑇𝐶(0) = 112 500 so that 112500 = 0 + 0 + 0 + 𝑐 𝑜𝑟 𝑐 = 112500

Put this in the TC function we have

𝑇𝐶 = 0.000001𝑥 3 − 0.001𝑥 2 − 240𝑥 + 112500

ii) The Maximum or Minimum of a function (also called Turning Points) occurs when:

𝑑𝑦 𝑑2 𝑦
𝑑𝑥
= 0 𝑎𝑛𝑑 𝑑𝑥 2
𝑖𝑠 𝑛𝑒𝑔𝑎𝑡𝑖𝑣𝑒 (𝑓𝑜𝑟 𝑀𝑎𝑥𝑖𝑚𝑢𝑚)𝑜𝑟 𝑝𝑜𝑠𝑖𝑡𝑖𝑣𝑒 (𝑓𝑜𝑟 𝑀𝑖𝑛𝑖𝑚𝑢𝑚).

Now here we have 𝑀𝐶 = 𝐶 ′ (𝑥) = 0.000003𝑥 2 − 0.003𝑥 − 240 = 0

This can be solved using the quadratic formula:

−𝑏 ± √𝑏 2 − 4𝑎𝑐
𝑖𝑛 𝑎𝑥 2 + 𝑏𝑥 + 𝑐 = 0, 𝑥=
2𝑎

Comparing: 𝑎 = 0.000003, 𝑏 = −0.003 𝑎𝑛𝑑 𝑐 = −240. 𝑃𝑢𝑡 𝑖𝑛 𝑡ℎ𝑒 𝑓𝑜𝑟𝑚𝑢𝑙𝑎 𝑤𝑒 ℎ𝑎𝑣𝑒:

−𝑏 ± √𝑏 2 − 4𝑎𝑐 −(−0.003) ± √(−0.003)2 − 4(0.000003)(−240)

𝑥= = =
2𝑎 2(0.000003)

0.003 ± 0.05384
= 9473.33 𝑜𝑟 − 8473.33
0.000006

Now quantities cannot be negative therefore we take the positive value only

𝑇ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑡ℎ𝑎𝑡 𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒𝑠 𝑐𝑜𝑠𝑡𝑠 𝑖𝑠 9473 𝑢𝑛𝑖𝑡𝑠.

Lecture Notes
 28

Some other examples of how the principles of integration can be used in business include:
 Probability Density Function
 Continuous Income Stream
 Future Value of Continuous Income Stream
 Consumers’ Surplus and Producers’ Surplus

Probability Density Function

In statistics we may consider a function that can be used to determine the probability that the outcome
of an experiment will be in some interval [a, b]. Such a function is called a Probability Density Function
(pdf) and it must satisfy the following conditions:
1. 𝑓(𝑥) ≥ 0 𝑓𝑜𝑟 𝑎𝑙𝑙 𝑟𝑒𝑎𝑙 𝑣𝑎𝑙𝑢𝑒𝑠 𝑜𝑓 𝑥. The function is positive for all values of x.
2. The area under the graph of the function is 1
i.e. ∫ 𝑓(𝑥)𝑑𝑥 = 1 𝑤ℎ𝑒𝑛 𝑡𝑎𝑘𝑒𝑛 𝑜𝑣𝑒𝑟 𝑡ℎ𝑒 𝑑𝑜𝑚𝑎𝑖𝑛 𝑜𝑓 𝑥
𝑏
3. 𝐼𝑓 [𝑎, 𝑏] 𝑖𝑠 𝑎 𝑠𝑢𝑏𝑠𝑒𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑑𝑜𝑚𝑎𝑖𝑛 𝑜𝑓 𝑥, 𝑡ℎ𝑒𝑛 𝑃[𝑎 ≤ 𝑥 ≤ 𝑏] = ∫𝑎 𝑓(𝑥)𝑑𝑥 = 𝐹(𝑏) − 𝐹(𝑎)
Note that:
𝑏

𝑃[𝑥 ≤ 𝑏] = 𝐹(𝑏) = ∫ 𝑓(𝑥)𝑑𝑥

−∞
𝑎

𝑃[𝑥 ≤ 𝑎] = 𝐹(𝑎) = ∫ 𝑓(𝑥)𝑑𝑥

−∞
Example:
The Life expectancy in years of a certain brand of clock radios is a continuous random variable with the
probability density function given by:
2
𝑖𝑓 𝑥 ≥ 0
𝑓(𝑥) = {(𝑥 + 2)2
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
Required:
Find the probability that a randomly selected clock radio lasts at most 6 years.

Solution:
6 6 2
We want to find 𝑃[0 ≤ 𝑥 ≤ 6] = ∫0 𝑓(𝑥)𝑑𝑥 = ∫0 (𝑥+2)2
𝑑𝑥
To evaluate such type of Integrals, we use substitution method, where we let (𝑥 + 2) = 𝑝 (say). Then
𝑑𝑝/𝑑𝑥 = 1 𝑜𝑟 𝑑𝑝 = 𝑑𝑥.
Put in the integral, we have:
6 8 8
2 2 2 2 6
∫ 𝑑𝑥 = ∫ 2 𝑑𝑥 = ∫ 2𝑝−2 𝑑𝑥 = (2𝑝−1 )/(−2 + 1) = − = − + 1 =
2 𝑝 𝑝 8 8
0 (𝑥 + 2) 2 2

Practice Question

The shelf life (in years) of a certain brand of flash light batteries is a continuous variable with a pdf given
by:
Lecture Notes
 29

1
𝑖𝑓 𝑥 ≥ 0
𝑓(𝑥) = {(𝑥 + 1)2
0 𝑜𝑡ℎ𝑒𝑟𝑤𝑖𝑠𝑒
Required:

Find the probability that a randomly selected battery has a shelf life of 3 years or less.

Continuous Income Stream

If 𝑓(𝑡) is the rate of flow of a continuous income stream, then the Total Income produced during this
time period from 𝑡 = 𝑎 𝑡𝑜 𝑡 = 𝑏 is given by
𝑏

𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒 = ∫ 𝑓(𝑡)𝑑𝑡

𝑎

Example

Find the total income produced by a continuous income stream in the first 5 years if the rate of flow is

𝑓(𝑡) = 2500
5
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒 = ∫ 2500𝑑𝑥 = 2500 ∗ 5 = 12 500
0

Practice Question

Find the Total Income produced by a continuous income stream in the first 10 years if the rate of flow is
3000.

Future Value of Continuous Income Stream

If 𝑓(𝑡) is the rate of flow of a continuous income stream and 0 ≤ 𝑡 ≤ 𝑇.

If the income is continuously invested at a rate r compounded continuously, then the Future
Value at the end of T years is given by:
𝑇 𝑇

𝐹𝑉 = ∫ 𝑓(𝑡)𝑒 𝑟(𝑇−𝑡) 𝑑𝑡 = 𝑒 𝑟𝑇 ∫ 𝑓(𝑡)𝑒 −𝑟𝑡 𝑑𝑡

0 0

Example

Find the Future Value at 10% interest compounded for 4 years for the Continuous Income
Stream with a rate of flow 𝑓(𝑡) = 1500𝑒 −0.02𝑡

Solution

Here we have the following:

𝑟 = 10% = 0.1, 𝑇 = 4, 𝐹(𝑡) = 1500𝑒 −0.02𝑡

Lecture Notes
 30

Put these in the formula we have:

4 4 4

𝐹𝑉 = ∫ 1500𝑒 −0.02𝑡 𝑒 0.1(4−𝑡) 𝑑𝑡 = 1500𝑒 0.4 ∫ 𝑒 −0.02𝑡 𝑒 −0.1𝑡 𝑑𝑡 = 1500𝑒 0.4 ∫ 𝑒 −0.12𝑡 𝑑𝑡
0 0 0

1500𝑒 0.4 −0.12𝑡 4 1500(1.492)

𝐹𝑉 = [𝑒 ]|0 = (0.6188 − 1) = −18650(−0.3812) = 7109.38
−0.12 −0.12

Practice Question

Find the Future Value of a Continuous Income Stream at the rate of 7% compounded
continuously for 6 years when the rate of income flow is 𝑓(𝑡) = 2000𝑒 0.06𝑡

Consumers Surplus and Producers’ Surplus

Consumer Surplus is defined as the total savings accruing to consumers who are willing to pay more for
a product but are currently paying a relatively lower price.

Producer Surplus on the other hand is the total gain to producers who are willing to supply units at a
price that is lower than the one they are currently supplying at, but are still able to supply at this higher
price.

If (𝑥0 , 𝑝0 ) is the equilibrium point at which Demand equals Supply, then if the price falls below this
point, we expect the Quantity Demanded to increase (as More is demanded at a lower price) and the
Quantity Supplied to decrease (as Less is supplied at a lower price); and vice versa.

This can be illustrated on a diagram as follows:

Y D S
CS

𝒑𝟎

PS

S D

𝒙𝟎 X

The Consumer Surplus is obtained by finding the area above the line from 𝑝𝑜 but beneath the Demand
function, while the Producer Surplus is obtained by finding the area above the Supply function but
beneath the line from 𝑝𝑜

𝒙𝟎 𝒙𝟎

𝑪𝑺 = ∫ 𝑫𝑫𝒅𝒙 − 𝒑𝟎 𝒙𝟎 𝒂𝒏𝒅 𝑷𝑺 = 𝒑𝟎 𝒙𝟎 − ∫ 𝑺𝑺𝒅𝒙

𝟎 𝟎

DD represents the Demand Function and SS represents the Supply Function

Lecture Notes
 31

For Example

1. Find the Consumer Surplus when the Equilibrium price is given as 150 and the Demand Function
is 𝐷𝐷 = 400 − 0.05𝑥

Solution:

First we need to find the value of the Equilibrium quantity. This can be obtained using the
demand function when Price is 150. Note that the demand function is evaluated to give the
price.
150−400
So, 150 = 400 − 0.05𝑥 ⟹ 𝑥 = −0.05
= 5000

Put this in the formula for CS we have:

𝟓𝟎𝟎𝟎

𝑪𝑺 = ∫ (𝟒𝟎𝟎 − 𝟎. 𝟎𝟓𝒙)𝒅𝒙 − (𝟏𝟓𝟎 ∗ 𝟓𝟎𝟎𝟎) = 𝟔𝟐𝟓 𝟎𝟎𝟎

𝟎

2. Find the Producer Surplus when the equilibrium price is given as 67 and the Supply Function SS
is
𝑆𝑆 = 10 + 0.1𝑥 + 0.0003𝑥 2
In the same way as above use the supply function to get the equilibrium quantity and then use it
in the Producer Surplus function:
𝟑𝟎𝟎

𝑷𝑺 = (𝟔𝟕 ∗ 𝟑𝟎𝟎) − ∫ (𝟏𝟎 + 𝟎. 𝟏𝒙 + 𝟎. 𝟎𝟎𝟎𝟑𝒙𝟐 )𝒅𝒙 = 𝟗 𝟗𝟎𝟎

𝟎

Practice Questions

a) Find the Consumers Surplus when the Equilibrium Price is 120 and the Demand Function is
𝐷𝐷 = 200 − 0.2𝑥
b) Find the Producers Surplus when the Equilibrium Price is 55 and the Supply Function FF is:
𝑆𝑆 = 15 + 0.1𝑥 + 0.0003𝑥 2

Lecture Notes