Can you help me figure out how to start problem 1g and just give me the formula to use for questions 1h. Thank you. TC= 809800+0.25q+0.0000015Q^2
1. The Midwest Block and Brick company in Jefferson City, Missouri makes concrete blocks for construction purposes. Suppose they are considering entering a new market in south- eastern Kansas. A concrete plant requires an upfront investment of $735,000 and will have a useful life of just one year. Labor costs are limited; the plant requires 4 employees, each of whom are paid $9 per hour and are guaranteed 40 hours a week, every week of the year. Apart from the initial investment and labor, there are three additional costs: raw materi- als, power, and maintenance. Concrete blocks are produced by combining cement, water, sand and gravel. Suppose that the raw materials and power used to produce one block cost $0.25. Suppose further that the plant's annual maintenance costs depend on how many blocks are produced in a given year. Specically, if the plant produces Q blocks, then the annual maintenance cost is given by 00000015622. This means, for example, that if a plant is scheduled to produce one million blocks in a year, then the annual maintenance cost will be 00000015622 = 0.0000015 * (1, 000, 000)2 = 1, 500, 000 (a) (2 points) Write an algebraic formula for the annual total cost curve. (b) (2 points) What part of this formula is the plant's xed cost? (c) (2 points) What part of this formula is the plant's variable cost? ((1) (2 points) Write an algebraic formula for the plant's average cost. ( (e) 2 points) Produce a graph of the total cost curve. Let the quantity of blocks vary from 0 to 2 million in your graph. Be sure to label both axes. (f) (2 points) Produce a graph of the Average Variable Cost curve. Let the quantity of blocks vary from 0 to 2 million in your graph. Be sure to label both axes. (g) (2 points) Suppose Midwest Block and Brick estimate the annual demand to be around 1.3 million blocks. How many plants should they produce in the area? (h) (2 points) Given the number of plants that you suggested in part (4), how many blocks should each plant produce
