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 cost to be: TC= 10,000+40 Q + 0.0025Q^2 And MC equals 40+0.005Q where cost are measured in US dollars in cuteness and number of wine decanters produced annually. Because Bavarian crystal works is the only one of many Christian producers in the world market, it can sell as many of the decanters it wishes for $70 apiece. Total and marginal revenue are: TR=70 Q and MR = 70 what is the optimal level are production of wine decanters? What is a marginal revenue from the last wine decanters sold? What part of total revenue, total costs, and net benefit (profit) from selling the optimal number of wine decanters? At the optimal level of production of decanters, extra decanted can be so for $70, thereby increasing total revenue by $70. Why does the manager of the firm not produce and sell one more unit?
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 cost to be: TC= 10,000+40 Q + 0.0025Q^2 And MC equals 40+0.005Q where cost are measured in US dollars in cuteness and number of wine decanters produced annually. Because Bavarian crystal works is the only one of many Christian producers in the world market, it can sell as many of the decanters it wishes for $70 apiece. Total and marginal revenue are: TR=70 Q and MR = 70 what is the optimal level are production of wine decanters? What is a marginal revenue from the last wine decanters sold? What part of total revenue, total costs, and net benefit (profit) from selling the optimal number of wine decanters? At the optimal level of production of decanters, extra decanted can be so for $70, thereby increasing total revenue by $70. Why does the manager of the firm not produce and sell one more unit?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 6E
Related questions
Question
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 cost to be:
TC= 10,000+40 Q + 0.0025Q^2
And
MC equals 40+0.005Q
where cost are measured in US dollars in cuteness and number of wine decanters produced annually. Because Bavarian crystal works is the only one of many Christian producers in the world market, it can sell as many of the decanters it wishes for $70 apiece. Total and marginal revenue are:
TR=70 Q and MR = 70
- what is the optimal level are production of wine decanters? What is a marginal revenue from the last wine decanters sold?
- What part of total revenue, total costs, and net benefit (profit) from selling the optimal number of wine decanters?
- At the optimal level of production of decanters, extra decanted can be so for $70, thereby increasing total revenue by $70. Why does the manager of the firm not produce and sell one more unit?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
