Hello, I need help answering the following exercises.
1. A company dedicated to tabaco has a cost and revenue function of:
CT= 20 + Q + Q2 (q squared)
I= 15Q - Q2 (q squared)
Determine the maximum and minimum amounts that can be produced where there is neither loss or gain.
2. If the consumer price index in 2002 is $175, in 2003 is $198, and in 2004 is $210, show the inflation table for 2003.
Your help is greatly appreciated.
Please include the formulas for both exercises.
1. Maximum and minimum amounts that can be produced where there is neither loss or gain are given by solving:
Cost - Income = 0.
Given Cost = 20 + Q + Q^2, Income = 15Q - Q^2.
So we need to solve, 20 + Q + Q^2 - (15Q - Q^2) = 0,
or 20 + Q + Q^2 - 15Q + Q^2 = 0,
or 20 - 14Q + 2Q^2 = 0,
or 10 - ...
This tutorial advises how to determine the maximum and minimum amounts that can be produced where there is neither loss or gain.