What characteristic of the cost function is revealed by the y-intercept of the cost function?

• Explain why there are two break-even points.

• Specify the production levels where the company loses money and where it is profitable.

• If the vertex of a quadratic function

y = f(x) = ax ² +bx+c always occurs at the point (-b/2a, f(-b/2a)),

Compute maximum profit. Does it occur at the same production level as maximum revenue?