A4.5 Victoria Vineyards is an American wine producer, specializing in premium red blends (red wines that use multiple different varieties of grapes). Victoria Vineyards’ total cost of producing its famous red blend is TC1Q2 = 100,000 + 10Q2 − 100Q where Q is the quantity of cases Victoria Vineyards produces.

a. What is Victoria Vineyards’ marginal cost equation, MC, of producing one case of its premium red blend?

b. What is Victoria Vineyards’ average total cost equation, ATC, of producing one case of its premium red blend?

c. Identify the range of quantities over which MC 6 ATC.

d. Identify the quantity range over which the slope of ATC is negative; that is, dATC dQ 6 0.