1.

Determine whether solutions exist for each of the following quadratic

equations. Where they do find the solution(s).
Firstly determine whether solutions exist using the following criteria:
Two solutions
b 2 4ac 0
2
One solution
b 4ac 0
2
No solution
b 4ac 0
Secondly find the solution where possible using the formula:
x

(i)

b b 2 4ac
2a

x2 2x 0

a=1, b=-2, c=0

b 2 4ac 2 2 41 0 4 0

two solutions exist

b b 2 4ac 2 4 2 2

2a
21
2

22
2
2
22
x
0
2

(ii) 3x 6 x 1 0
Multiply out the quadratic
3x 2 3x 6 0

Divide across by 3
x2 x 2 0

a=1, b=-1, c=-2

b 2 4ac 1 2 41 2 9 0

two solutions exist

b b 4ac 1 9 1 3

2a
21
2

1 3
2
2
1 3
x
1
2

(iii) 9 x 2 24 x 16 0
a=9, b=-24, c=16

b 2 4ac 24 2 4 9 16 576 576 0

one solution

b b 4ac 24 0 24

1.33
2a
2 9
18

(iv) 3x 2 2 x 3 0
a=3, b=2, c=3

b 2 4ac 2 2 4 3 3 4 36 32 0

no solution

(v) 2 x 2 11x 21 0
a=2, b=11, c=-21

b 2 4ac 11 2 4 2 21 121 168 289 0

two solutions

b b 2 4ac 11 289 11 17

2a
2 2
4

11 17
1.5
4

11 17
7
4

(vi) 2 x 2 x 10 0
a=-2, b=1, c=10

b 2 4ac 1 4 2 10 81 0
2

two solutions

b b 2 4ac 1 81 1 9

2a
2 2
4

1 9
2
4

1 9
2.5
4

2 A firms demand function for a good is given by P = 107-2Q and their total
cost function is given by TC = 200+3Q .
i) Obtain an expression for total revenue profit in terms of Q
Total Revenue = P.Q
TR = (107-2Q)*Q = 107Q-2Q2
Profit = TR-TC
Profit = 107Q-2Q2-200-3Q = -2Q2+104Q-200
ii)
For what values of Q does the firm break even
Firm breaks even where Profit = 0
-2Q2+104Q-200 = 0
a = -2, b=104, c=-200

iii)

Illustrate the answer to (ii) using sketches of the total cost function,
the total revenue function and the profit function

Proft = 1150

2000
TC / TR / Profit

1500

1000

TC

500

TR

0
0

10

20

Q = 26

30

40

50

Profit
Profit

-500

Note: Break even where Profit = 0 or TR=TC.

iv)

From the graph estimate the maximum profit and the level of output
for which profit is maximised
Maximum profit at max point on profit curve.
Max profit = 1150 at Q = 26
3. What is the profit maximising level of output for a firm with the marginal
cost function MC = 1.6Q2-15Q+60 and a marginal revenue function MR =
280-20Q?
Profit is maximised where MR=MC
280-20Q = 1.6Q2-15Q+60
1.6Q2+5Q-220=0
a=1.6, b=5, c=-220
Q

5 2 41.6 220
21.6

25 1408
5 37.85

3.2
3.2

Q 10.27, Q 13.39

Profit maximising level of output is Q = 10.27 (cant have negative output)

4. The demand function for a good is given as Q = 130-10P. Fixed costs

associated with producing that good are 60 and each unit produced costs an
extra 4.
i) Obtain an expression for total revenue and total costs in terms of Q

Q
60

TR = P.Q
Q = 130-10P
10P = 130-Q
P = 13-Q/10
TR = (13-Q/10)*Q = 13Q-0.1Q2
TC = FC+VC
TC = 60+4Q
ii)
For what values of Q does the firm break even
Firm breaks even where TR = TC
13Q-0.1Q2=60+4Q
-0.1Q2+9Q-60=0
a=-0.1, b=9, c=-60
Q

9 2 4 0.1 60
2 0.1

9 81 24
9 7.55

0.2
0. 2

Q 7.25, Q 82.75

iii)

Obtain an expression for profit in terms of Q and sketch its graph

iv)

Use the graph to confirm your answer to (ii) and to estimate maximum
profit and the level of output for which profit is maximised
Profit = TR-TC
Profit = 13Q-0.1Q2-60-4Q=-0.1Q2+9Q-60

200
Profit
150

Profit Max
Profit = 143

100

Profit

50

0
0
-50

-100

10

Break Even
Q = 7.25

20

30

40

50

Profit Max
Q = 45

60

70

80

Break Even
Q = 82.75

90