Answer to Question #273636 in Microeconomics for Manno

Question

π1= -Q²+17Q-42 π2 = -Q²+16Q-38, at what level of output will profit be zero?

Answer 1

Given; π1= -Q²+17Q-42 π2 = -Q²+16Q-38

The output will zero when $\frac{\delta\pi}{\delta Q}=0$

For π1= -Q²+17Q-42

$\frac{\delta\pi}{\delta Q}=-2Q+17$

$Q=\frac{17}{2}=8.5$

For π2 = -Q²+16Q-38;

$\frac{\delta\pi}{\delta Q}=-2Q+16$

$Q=\frac{16}{2}=8.0$