Question: Average Cost-Minimization. Pharmed Caplets is an antibiotic product with monthly revenues and costs of: TR = $900Q - $0.1Q2 TC = $36,000 + $200Q +

Average Cost-Minimization. Pharmed Caplets is an antibiotic product with monthly revenues and costs of:

TR = $900Q - $0.1Q2 TC = $36,000 + $200Q + $0.4Q2

MR = TR/Q = $900 - $0.2Q MC = TC/Q = $200 + $0.8Q

B. Using the spreadsheet to, create a graph with MR, MC, and AC as dependent variables and units of output (Q) as the independent variable. At what price/output combination is total profit maximized? Why? At what price/output combination is average cost minimized? Why?

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