Integration

Indefinite integration
Definite integration
In calculus, the inverse of differentiation is called integration. If F′(x) = f(x), then
F(x), is said to be the integral (sometimes called the anti-derivative or primitive) of
f(x) and is written

𝐹 𝑥 = න 𝑓 𝑥 𝑑𝑥

The arbitrary constant, c, is called the constant of integration. In general, if

F(x) is any function that differentiates to f(x), then so does
𝐹 𝑥 +𝑐
Hence
න 𝑓 𝑥 𝑑𝑥 = 𝐹 𝑥 + 𝑐
 2
𝐴 = න 𝑥 2 𝑑𝑥
1

𝐴
The definite integral

denotes the area under

the graph of f(x)
between x = a and x = b
 The shaded area BCD therefore represents
the benefit to the consumer of paying the
fixed price of 𝑃0 and is called the consumer’s
surplus, CS. The value of CS can be found by
observing that
CS = area OABD – area OABC
𝑄0
𝑃 = 𝑓(𝑄)
= ‫׬‬0 𝑓 𝑄 𝑑𝑄 − 𝑄0 𝑃0
 The shaded area BCD therefore represents the
benefit to the producer of selling at the fixed
price of 𝑃0 and is called the producer’s surplus,
PS. The value of PS is found by observing that
𝑃 = 𝑔(𝑄)
PS = area OABC - area OABD
𝑄
= 𝑄0 𝑃0 − ‫׬‬0 0 𝑔 𝑄 𝑑𝑄
Net investment, I, is defined to be the rate of change of capital stock, K, so that
𝑑𝐾
𝐼=
𝑑𝑡
Here, I(t) denotes the flow of money, measured in dollars per year, and K(t) is the
amount of capital accumulated at time t as a result of this investment flow and is
measured in dollars.
The formula
𝑃 = 𝑆𝑒 −𝑟𝑡/100
was used to calculate the present value, P, when a single future value, S, is
discounted at r% interest continuously for t years.
For example, if the discount rate is 9%, the present value of a continuous
revenue stream of a $1000 a year for five years is
5
𝑃 = ‫׬‬0 1000𝑒 −0.09𝑡 𝑑𝑡 = $4026.35