The total cost functions for two soap manufacturers (Plane Soap and Round Soap) are given by equations

(i) and (ii) below,

(i) TC = 12 + 2Q

(ii) TC = 0.3Q³ -15Q² + 250Q

(a) The demand function for both firms is P= 115 - 2Q. Determine the break-even points algebraically.

Plot total revenue and TC on the same diagram for each firm.

(b) Comment on the general characteristics of the TC functions.

(C) Determine the break-even points graphically and state the range of values of Q (output) for which

the firm makes a profit.

Comment on the profitability of both firms.

Answer rating: 100% (QA)

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