EXERCISE OF INTEGRALS APPLIED TO THE INDUSTRIAL ENGINEERING

CAREER.

Exercise 1
A company currently produces 220 units per week of a product. If the cost of producing x
units in a week is given by the function:
Cx  300.03x
Assuming that this marginal cost still applies. Determine the extra cost per week to be
considered when raising production from 200 to 250 units per week.

250
𝐶(𝑥) = ∫ (30 − 0.03𝑥)𝑑𝑥
200

0.03𝑥 2 250
𝐶(𝑥) = 30𝑥 − = 30𝑥 − 0.015𝑥 2
2 200
Solving the limits
𝐶(250) = 30(250) − 0.015(2502 ) = $ 6562.5
𝐶(200) = 30(200) − 0.015(2002 ) = $ 5400
𝐶(250) − 𝐶(200) = 6562.5 − 5400 = $ 1162.5
Exercise 2
In the law of supply and demand, four cases are proposed.
1. If demand increases and supply remains stable, the price increases.
2. If the demand decreases and the supply remains stable, the price should go down.
3. If the demand remains unchanged and the supply increases, the price of the service product
should decrease.
4. If demand remains unchanged (stable) and supply decreases, the price increases.

CONSUMER SURPLUS
Consumer surplus is the difference between what I am willing to pay and what I pay.

Producer surplus.
It refers to the difference between the minimum prices at which you would be willing to sell.

APPLICATION OF COMPREHENSIVE CALCULATION.

Once established that both supply and demand are curves and that they form an area from
their equilibrium point. To determine the surplus and the producer and the consumer we use
the integral calculation.

TROUBLE
Determine producer and consumer surplus for supply and demand curves.
 Function Demand P1 (q) = 1000-0.4q2
 Offer Function P2 (q) = 42q
Step 1
Match the equations to find the balance between supply and demand.

Function Demand: P1 (q) = 1000-0.4q2 Solving: P1 (q) = 1000-0.4q2

Offer Function: P2 (q) = 42q P2 (q) = 42q
2
1000-0.4q =42q

2
0.4q +42q-1000=0
q1=20; q2=-120

P (q) = 42(20) = 840

 CONSUMER SURPLUS

PRODUCER SURPLUS

Step 2.
Graph and identify the producer and consumer surplus.

CONSUMER SURPLUS
𝑛
EC = ∫0 (𝐸𝐷 − 𝑌𝑒)𝑑𝑝
20
= ∫0 (1000 − 0.4𝑞) − 840 𝑑𝑝
20
= ∫0 160 − 0.4𝑞
= $3120

PRODUCER SURPLUS
𝑛
EP = ∫0 (𝑌𝑒 − 𝐸𝑜)𝑑𝑝
20
=∫0 (840 − 21q2)dp
= $8400