Suppose that the profit for a company is increasing at a rate of

where the company has been in operation for *t* years. What is the total change in profit over the first three years?

Continue reading “How Do You Find Profit from Marginal Profit?”

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# FAQ Topic: Antiderivatives

## How Do You Find Profit from Marginal Profit?

## How Do You Undo A Marginal Function?

## What is the Antiderivative of a Marginal Function?

Suppose that the profit for a company is increasing at a rate of

where the company has been in operation for *t* years. What is the total change in profit over the first three years?

Continue reading “How Do You Find Profit from Marginal Profit?”

Marginal function like marginal cost, marginal revenue, and marginal profit are all derivatives. This means that we can undo these derivatives to obtain the cost, revenue, and profit functions by taking their antiderivatives.

For example, suppose the marginal cost for a product is given by

where x is the number of units produced. Also suppose the fixed cost are $1000. The antiderivative of the marginal cost is

where K is an arbitrary constant. By requiring that the fixed cost is $1000, we know that the cost of producing no items is $1000 or C(0) = 1000. This means that

or K = 1000. The cost function matching the marginal cost and fixed cost is

Here are several more examples worked out by students.

**Example 1** Find the demand function corresponding to the marginal revenue

Remember. no revenue is incurred when no items are sold.

**Example 2** Find the cost function corresponding to the marginal cost function

Assume that 16 units costs $45.

**Example 3** The marginal profit in dollars per pound on Brie cheese is

where *x* is the amount of cheese sold in hundreds of pounds. Assume the profit is -40 when no cheese is sold.

a. Find the profit function.

b. Find the profit from selling 200 pounds of cheese.

Since the variable *x* is in hundreds of pounds, the profit is found by substituting 2 (not 200) into the function.

To undo a marginal function, we need to find the antiderivative of the marginal function. In other words, the antiderivative of marginal cost is cost.

**Problem 1** Find the cost function for the marginal cost function

where 16 units cost $45.

**Problem 2** Find the cost function for the marginal cost function

where 8 units cost $58.

Similarly, the antiderivative of the marginal revenue is revenue. To find the corresponding demand function, we need to divide by x,

**Problem 3** Find the demand function for the marginal revenue function

**Problem 4** Find the demand function for the marginal revenue function