Vintage Cellars manufactures a 1000 bottle wine storage system that maintains optimum temp (55-57 degrees F) and humidity (50-80%). The system has a backup battery for power failures and can store red and white wines at different temps. The following table depicts how average cost varies with the number of units manufactured and sold per month.

a. Prepare a table that computes the total cost and marginal cost for each quantity of units between 1 and 10 units.

b. What is the relation between avg cost and marginal cost?

c. What is the opportunity cost of producing one more unit if the company is currently producing and selling 4 units?

d. Vintage cellars sells the units for $9,000 each. This price does not vary with the number of units sold. How many ints should Vintage manufacture and sell each month?

QUANTITY12345678910AVERAGECOST$12,00010,0008,6007,7007,1007,1007,3507,8508,6009,600