N1

(a)

Company 1

=-Q²+17Q-42

Company2

=-Q²+16Q-38

= profit, Q = output

Question:

A. Calculate at what level of output (Q) firm 1 earns ZERO profit. Use the quadratic formula.

B. Calculate at what level of output (Q) is the firm making a profit of 25?

(b)

Companies that produce bicycles and TVs have the following production possibility curve functions: S²+3S+5T = 130

Where: S = bicycle (units), T = Television (units)

Question:

A. Calculate the maximum number of bicycles that can be produced.

B. Calculate the number of televisions that can be produced

C. Calculate the maximum number of bicycles that can be produced if the number of TVs produced is 18 units.

D. Calculate the maximum number of TVs that can be produced if the number of bicycles produced is 7 units.

E. Graphically depict your value