Question

Q1:

The cost, in dollars, to produce Q designer dog leashes is ??= 7Q + 10 and the demand function is given by ?= -2Q + 59.

a) Find the TR function. Which type of function TR is? Which type of turning point is going to have? Explain.

b) Find the values of Q at which TR is zero. At which value of Q total revenue is a maximum?

c) Find the profit function. Describe the main characteristics of the profit function.

d) Find the values of Q at which profit is zero. At which value of Q profits are maximum? Find the maximum profit.

e) Find the values of Q at the BEP algebraically and graphically and explain your findings.

Q2:

A profit function is given by: ??????=4Q^3 - 40Q^2 + 96Q

Q 0 . 1 2 3 4 5 6 7 8 9 10

Profit

a) Compute profits for the values of Q in the above table.

b) Graph the profit function.

c) Identify the following: type of function, the roots and the turning points indicating their type.

d) Indicate the range of values of Q in which the company is making negative profits.

Answer 1