Business, 30.03.2020 17:30 jefarmjefarm9659
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 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.
NOTE: Do the following before Pt. A: Produce a chart in Excel showing TC & TR with Q on the horizontal axis. Have Q go from 0 to 15,000 units. Produce a second chart showing MC & MR with Q again on the horizontal axis.
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 does the manager of this firm NOT produce & sell one more unit?
D. 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 & sell either one more or one less unit?
Answers: 1
Business, 22.06.2019 03:50
Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by a. 30 units of grain and 100 units of incense. b. 30 units of grain and 150 units of incense. c. 50 units of grain and 90 units of incense. d. 50 units of grain and 130 units of ince
Answers: 1
Business, 22.06.2019 07:30
Which of the following best describes why you need to establish goals for your program?
Answers: 3
Business, 22.06.2019 10:30
Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. its ending equity is
Answers: 2
Business, 22.06.2019 20:30
The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.
Answers: 3
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international...
Mathematics, 17.12.2020 07:20
History, 17.12.2020 07:20
Mathematics, 17.12.2020 07:20
Mathematics, 17.12.2020 07:20
Mathematics, 17.12.2020 07:20
Mathematics, 17.12.2020 07:20
Mathematics, 17.12.2020 07:20
Computers and Technology, 17.12.2020 07:20
Mathematics, 17.12.2020 07:20