A manufacture of spare parts faces the demand curve, P = 750 - 4Q and produces...

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A manufacture of spare parts faces the demand curve, P = 750 - 4Q and produces output according to the cost function, Cost = 12,000 + 200Q + 0.5Q2. Provide expressions for revenue, cost, profit, marginal revenue and marginal cost. To enter Q2 use ^ i.e. Q^2. a) (21 points: 3 points for each column) Create a profit table in Excel for selling quantity from 0 to 100. Use formulas appropriately. Format your Table to match Table 1 in Question 1. Freeze the first row. b) (17 points) Draw and format a graph in EXCEL of the Revenue, Cost, and Profit curves similar to those provided in Figure 1. Make sure your horizontal axis is from 0 to 100, and that your graph is properly labeled (Legends, Axis titles, and Chart title) 2 points for horizontal axis, 1 point for horizontal label, 1 point for vertical label, 1 point for chart title, 3 points for legends, 3 points for Revenue graph, 3 points for Cost graph, 3 points for Profit graph c) (12 points: 6 points for the right answer, 6 points for the explanation) Look at the table you created. If we could only produce at whole numbers, what is the optimal quantity of production? Why? d) (10 points) Create another row with Q=101. Make sure the formulas in Price, Revenue, Cost, and Profit are copied correctly. Use Solver to calculate the firm's profit-maximizing quantity and keep the solver solution. A manufacture of spare parts faces the demand curve, P = 750 - 4Q and produces output according to the cost function, Cost = 12,000 + 200Q + 0.5Q2. Provide expressions for revenue, cost, profit, marginal revenue and marginal cost. To enter Q2 use ^ i.e. Q^2. a) (21 points: 3 points for each column) Create a profit table in Excel for selling quantity from 0 to 100. Use formulas appropriately. Format your Table to match Table 1 in Question 1. Freeze the first row. b) (17 points) Draw and format a graph in EXCEL of the Revenue, Cost, and Profit curves similar to those provided in Figure 1. Make sure your horizontal axis is from 0 to 100, and that your graph is properly labeled (Legends, Axis titles, and Chart title) 2 points for horizontal axis, 1 point for horizontal label, 1 point for vertical label, 1 point for chart title, 3 points for legends, 3 points for Revenue graph, 3 points for Cost graph, 3 points for Profit graph c) (12 points: 6 points for the right answer, 6 points for the explanation) Look at the table you created. If we could only produce at whole numbers, what is the optimal quantity of production? Why? d) (10 points) Create another row with Q=101. Make sure the formulas in Price, Revenue, Cost, and Profit are copied correctly. Use Solver to calculate the firm's profit-maximizing quantity and keep the solver solution.

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a To create a profit table in Excel we will calculate the revenue cost profit marginal revenue and marginal cost for selling quantities from 0 to 100 ... View the full answer