P3.5 Supply Function. A review of industry-wide data for the jelly and jam manufacturing industry suggests the

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P3.5 Supply Function. A review of industry-wide data for the jelly and jam manufacturing industry suggests the following industry supply function Q = - 59 000 000 + 500 000P- 125 000Pt

- 500 000P^ +2 0000001/1/

where Q is cases supplied per year, P is the wholesale price per case ($), P, is the average price paid for unskilled labor ($), PK is the average price of capital (in per cent), and W is weather measured by the average seasonal rainfall in growing areas (in inches).?

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Managerial Economics

ISBN: 1518

14th Revised Edition

Authors: Mark Hirschey

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