Hi Mike, I just saw this and i have a question.I was wondering if you could tell me how i would graph this! Thanks. How will i Produce a chart in Excel showing TC and TR with Q on the horizontal axis. Have Q go from 0 to 15,000 units and how will i produce a second chart showing MC and MR with Q again on the horizontal axis based on the following problem: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 + 0.005QWhere 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 areTR = 70Q and MR= 70me: i know that Q will be the 1000's so it will range from 1-15. What else do i do after that? Thanks.
Hey Mike. These are the rest of the questions that came with the Bavarian Crystal problem. I don't think you need them to make the graph but here goes.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?”