Business MathematicsNEB 2075 (old course)

a) Find the indefinite integral 3x+1x 2 dx . b) The marginal revenue function is given by MR = 3 2x x^2 , x being the output. Find the total revenue function and the demand function.

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Answer

a) Indefinite Integral:

Step 1: Simplify the integrand

The integrand is a rational function . To simplify, we perform polynomial long division or rewrite the numerator to match the denominator.

We express the numerator in terms of the denominator : This is because:

Thus, the integrand becomes:

Step 2: Integrate term by term

Now, the integral can be split into two simpler integrals:

  1. The first term is straightforward:

  2. The second term is a standard logarithmic integral:

Step 3: Combine the results

Adding the results of the two integrals and combining the constants of integration (), we get:

Final Answer:


b) Marginal Revenue and Demand Function

Given:

The marginal revenue function is: where is the output.

Step 1: Find the total revenue function

The total revenue function is the integral of the marginal revenue function:

Integrate term by term:

Thus, the total revenue function is:

Since revenue cannot be negative and is typically defined up to a constant, we can set for simplicity (assuming when ):

Step 2: Find the demand function

The demand function is the inverse of the total revenue function in terms of price . However, revenue is defined as: where is the price per unit.

From the total revenue function:

But , so:

Divide both sides by (assuming ):

Thus, the demand function is:

Alternatively, if the question expects the demand function in terms of as a function of , we can write it as:

However, if the demand function is to be expressed as in terms of , we solve for : Rearrange: Multiply by 3:

This is a quadratic in :

Since must be non-negative, we take the positive root:

But this is not typically required unless specified. The more common interpretation is to express as a function of , which we have already done.

Final Answers:

  1. Total Revenue Function:

  2. Demand Function (Price as a function of output):

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