Display Inc. The Korean company Display Inc. produces displays for smartphones. It has just started up a
Question:
Display Inc.
The Korean company Display Inc. produces displays for smartphones. It has just started up a new line of highresolution displays using an improved imaging technology. The company produced the first 32 batches of 100 products each and corporate accounting just received the following production and cost data:
Required:
1. Estimate, by using every given datapoint in the table, the cost function of this product.
(Hint: this can be done by using log or ln transformed data).
2. A very efficient little family run company offers Display Inc. to take over the production of displays for batches 33 to 64 at a price of €65 per batch. Should Display Inc. decide to outsource production beyond the first 32 batches?
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