\begin{tabular}{|r|r|r|r|r|c|} \hline \hline & \multicolumn{3}{|c|}{A} & \multicolumn{1}{|c|}{C} \\ \hline 42 & 2509 & 0.B & 0.91 & 1 & 0 \\ \hline 43 & 2.184 & 0.89 & 0.59 & 1 & 0 \\ \hline 44 & 12485 & 0.7 & 0.65 & 0 & 1 \\ \hline 45 & 6560 & 0.75 & 0.9 & 1 & 0 \\ \hline 46 & 2647 & 0.92 & 0.91 & 1 & 0 \\ \hline 47 & 2949 & 0.91 & 0.92 & 1 & 0 \\ \hline 48 & 3016 & 0.91 & 0.91 & 1 & 0 \\ \hline 49 & 2370 & 0.91 & 0.91 & 0 & 0 \\ \hline 50 & 2006 & 0.91 & 0.76 & 0 & 0 \\ \hline 51 & 2556 & 0.9 & 0.77 & 0 & 0 \\ \hline 52 & 13808 & 0.69 & 0.76 & 0 & 1 \\ \hline 53 & 6668 & 0.82 & 0.77 & 1 & 0 \\ \hline \end{tabular} d. (6 points) Given the regression estimates from part b, write the implied demand function for your product here. Include all estimated coefficients that are statistically significant in your model. e. (10 points) Does this firm operate in a competitive market or have some degree of market power (it can choose its price)? Based on your understanding of market characteristics, your understanding of powdered drink mixes as a consumer, and what you've seen of the data, what type of market is your drink mix company likely to be operating in. Explain why. f. (10 points) Write the demand function as only a function of the product's price, given the regression output from above. (This is like #5 from the most recent case study). Create your own simpler demand function using only the variables that are statistically significant and plug in the mean value. Qd(sales)=Constant+1(ownprice)+2(compprice)+3(disp)+4(dispad) Plug the mean into the equation with the coefficients that are statistically significant and add those numbers into the constant, you will end up with a familiar looking demand function that looks like this: Qd=Constant1Price Write that function here (points awarded here) g. (10 points) Envision that you know your drink mix company has a cost function equation to c(a)=500 +0.1q. Now, you will be only using changes in price to calculate optimum price and quantity to maximize profits (for the other statistically significant coefficients, plug in that they are equal to zero) so you will have a demand function like: Q= constant - Coefficient*'(price). Start with a price equal to $0.00 and increase the price by $0.05 in each row until you reach $0.65. Using that range of prices, estimate quantity demanded, revenue, cost, and profits (have a column for each). Create a professional looking table in the style of the example table shown in the Microsoft excel workbook included with the exam. Give it a title, make sure it has consistent decimal places and make it look professional. Paste that table below. h. (4 points) What is your profit maximizing price, quantity, and maximum profit given the information from your regression model and table? \begin{tabular}{|r|r|r|r|r|c|} \hline \hline & \multicolumn{3}{|c|}{A} & \multicolumn{1}{|c|}{C} \\ \hline 42 & 2509 & 0.B & 0.91 & 1 & 0 \\ \hline 43 & 2.184 & 0.89 & 0.59 & 1 & 0 \\ \hline 44 & 12485 & 0.7 & 0.65 & 0 & 1 \\ \hline 45 & 6560 & 0.75 & 0.9 & 1 & 0 \\ \hline 46 & 2647 & 0.92 & 0.91 & 1 & 0 \\ \hline 47 & 2949 & 0.91 & 0.92 & 1 & 0 \\ \hline 48 & 3016 & 0.91 & 0.91 & 1 & 0 \\ \hline 49 & 2370 & 0.91 & 0.91 & 0 & 0 \\ \hline 50 & 2006 & 0.91 & 0.76 & 0 & 0 \\ \hline 51 & 2556 & 0.9 & 0.77 & 0 & 0 \\ \hline 52 & 13808 & 0.69 & 0.76 & 0 & 1 \\ \hline 53 & 6668 & 0.82 & 0.77 & 1 & 0 \\ \hline \end{tabular} d. (6 points) Given the regression estimates from part b, write the implied demand function for your product here. Include all estimated coefficients that are statistically significant in your model. e. (10 points) Does this firm operate in a competitive market or have some degree of market power (it can choose its price)? Based on your understanding of market characteristics, your understanding of powdered drink mixes as a consumer, and what you've seen of the data, what type of market is your drink mix company likely to be operating in. Explain why. f. (10 points) Write the demand function as only a function of the product's price, given the regression output from above. (This is like #5 from the most recent case study). Create your own simpler demand function using only the variables that are statistically significant and plug in the mean value. Qd(sales)=Constant+1(ownprice)+2(compprice)+3(disp)+4(dispad) Plug the mean into the equation with the coefficients that are statistically significant and add those numbers into the constant, you will end up with a familiar looking demand function that looks like this: Qd=Constant1Price Write that function here (points awarded here) g. (10 points) Envision that you know your drink mix company has a cost function equation to c(a)=500 +0.1q. Now, you will be only using changes in price to calculate optimum price and quantity to maximize profits (for the other statistically significant coefficients, plug in that they are equal to zero) so you will have a demand function like: Q= constant - Coefficient*'(price). Start with a price equal to $0.00 and increase the price by $0.05 in each row until you reach $0.65. Using that range of prices, estimate quantity demanded, revenue, cost, and profits (have a column for each). Create a professional looking table in the style of the example table shown in the Microsoft excel workbook included with the exam. Give it a title, make sure it has consistent decimal places and make it look professional. Paste that table below. h. (4 points) What is your profit maximizing price, quantity, and maximum profit given the information from your regression model and table