Suppose we know that is the derivative of some function , is there a way to explicitly find ? The answer is yes, provided that we have some additional information:
Where is some antiderivative of and is an arbitrary constant. The problem is that and are not necessarily the same, just that they are both antiderivatives of . What we do know is they differ by a constant. For convenience, write
where is a specific constant. In particular:
If we know a particular value of then we can find . This particular value that we know is called an initial condition.
Marginal Revenue and Marginal Cost
Let’s apply what we’ve learned about integrating with initial conditions to working with marginal revenue and marginal cost.
Suppose that is a total revenue function, then as money is earned only from selling products, Likewise, if is a total cost function, then where is the fixed cost.
In both of these cases, we have a standard initial condition that we may use.