2. Your company has estimated its total cost to be TC = 5500 + 0.05Q + 0.0006Q2; its marginal cost is thus MC = 0.05 + 0.0012Q, where Q is the quantity of units produced and TC is in dollars. Since your market is relatively competitive, your company is able to sell its output for $8.45 each (which thus yields MR = 8.45 and TR = 8.45Q).

a. Produce a chart in Excel showing TC and TR with Q on the horizontal axis. Have Q go from 0 to 10,000 units. Produce a second chart showing MC and MR with Q again on the horizontal axis.

b. What is the optimal level of output for your company to produce/sell? What is the marginal revenue from the last unit sold?

c. What are the total revenue, total cost, and profit (net benefit/net revenue/etc.) from selling the optimal number of units?

d. An eager intern at your company suggests that, since the company earns $8.45 revenue for each unit sold, then the company could make still more profit by selling more than the level chosen in part b; why would your company not want to produce and sell more output than the level you chose in part b?

### Recently Asked Questions

- Lexan Textile Company's Job X12 had one of its 35 units spoiled. The cost incurred on the unit was $780. It was specific normal spoilage with an estimated

- Required: 1. Calculate the total cost of each of the three jobs. 2. Suppose that for the entire year, Whitley used 30,800 labor hours and total actual overhead

- Why is Forgiveness important in the Old Testament? Please explain.