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:

b 2  4ac  0 Two solutions
2
b  4ac  0 One solution
2
b  4ac  0 No solution

Secondly find the solution where possible using the formula:

 b  b 2  4ac
x
2a

(i) x2  2x  0

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

b 2  4ac    2  2  41 0   4  0 two solutions exist
 b  b 2  4ac 2  4 2  2
x  
2a 21 2
22
x 2
2
22
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  41  2   9  0 two solutions exist
2
 b  b  4ac 1  9 1  3
x  
2a 21 2
1 3
x 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
2
 b  b  4ac 24  0 24
x    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  11 x  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
x  
2a 2 2  4
 11  17  11  17
x  1.5 x  7
4 4

(vi)  2 x 2  x  10  0
a=-2, b=1, c=10
b 2  4ac  1 2  4  2 10  81  0 two solutions
 b  b 2  4ac  1  81  1  9
x  
2a 2  2  4
1 9 1 9
x  2 x  2.5
4 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
 104  104 2  4  2  200  104  10816  1600  104  96
Q  
2  2  4 4
Q  2, Q  50

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

500
TC

0 TR Q
0 10 20 30 40 50 60
Q = 26
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
5  5 2  41.6  220 5 25  1408  5  37.85
Q  
21.6 3.2 3.2
Q  10.27, Q  13.39
Profit maximising level of output is Q = 10.27 (can’t 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
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
9  9  2  4  0.1  60  9  81  24  9  7.55
Q  
2  0.1  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

50
Profit

Q
0
0 10 20 30 40 50 60 70 80 90
Break Even Profit Max Break Even
-50 Q = 7.25 Q = 45 Q = 82.75

-100