Hey can someone tell me how to graph this in excel please. Thanks.
Produce a chart in Excel showing TC and TR with Q on the horizontal axis. Have Q go from 0 to 15,000 units. Produce a second chart showing MC and MR with Q again on the horizontal axis. Here is the problem for it.
Bavarian Crystal works designs and produces lead crystal wine decanters for export to international markets. The production manager of Bavarian crystal works estimates total and marginal production costs to be
TC=10,000+ 40Q+0.0025Q2
And MC=40 + 0.005Q
Where costs are measured in U.S. dollars and Q is the number of wine decanters produced annually. Because Bavarian Crystal Works is the only one of many crystal producers in the world market, it can sell as many of the decanters as it wishes for$70 apiece. Total and marginal revenue are
TR = 70Q and MR= 70
Where revenues are measured in U.S. dollars and Q is annual decanter production.
A.What is the optimal level of production of wine decanters? What is the marginal revenue from the last wine decanter sold?
B.What are the total revenue, total cost, and net benefit(profit) from selling the optimal number of wine decanters.
C.At the optimal level of production of decanters’ an extra decanter can be sold for $70, thereby increasing total revenue by $70. Why would the manager of this firm not produce and sell either one more or one less unit?”
Thanks.