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    Consumer price index

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    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.

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    https://brainmass.com/economics/inflation/economy-exercises-consumer-price-index-343490

    Solution Preview

    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 - ...

    Solution Summary

    This tutorial advises how to determine the maximum and minimum amounts that can be produced where there is neither loss or gain.

    $2.19

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