Question: Theoretically, any given production plant has an optimum output level. Suppose a certain production plant has annual fixed costs =$2,000,000. Variable cost is functionally related

Theoretically, any given production plant has an optimum output level. Suppose a certain production plant has annual fixed costs =$2,000,000. Variable cost is functionally related to annual output Q in a manner that can be described by the function Cv= $12+$0.005Q. Total annual cost is given by TC=Cf+CvQ. The unit sales price for one production unit P=$250. (a) Determine the value of Q that minimizes unit cost UC, where UC=TC/Q; and compute the annual profit earned by the plant at this quantity. (b) Draw the curve between UC and Q using Excel and insert it here (c) Determine the value of Q that maximizes the annual profit, Z, earned by the plant; and compute the annual profit earned by the plant at this quantity. (d) Draw the curve between Z and Q using Excel and insert it

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