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K Quantity (sheets) 25,000 26,000 26,000 27,000 27,000 27,000 28,000 28,000 28,000 29,000 Marginal cost (dollars per sheet) 24.38 25.54 26.21 27.35 26.68 26.75 28.50
K Quantity (sheets) 25,000 26,000 26,000 27,000 27,000 27,000 28,000 28,000 28,000 29,000 Marginal cost (dollars per sheet) 24.38 25.54 26.21 27.35 26.68 26.75 28.50 28.00 27.70 31.16 Quantity (sheets) 29,000 30,000 30,000 30,000 30,000 30,000 31,000 31,000 31,000 31,000 E[MC] = Marginal cost (dollars per sheet) Estimate a regression using the marginal cost as the dependent variable and a constant and the quantity as independent variables. The predicted values for the dependent variable are the expected marginal costs at that quantity. The estimated regression will take the form: + 30.26 31.24 31.69 30.39 30.09 29.91 31.07 31.01 33.14 32.73 XQ where E[MC] is the expected marginal cost and Q is the quantity. Write the standard errors in parentheses below the estimated coefficients. (Round your answers to four decimal places.) The quantity of plywood that maximizes your firm's expected profit is sheets. of comp
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