# Consumer price index

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.

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.