Question
PewTooth, the popular new startup company that manufactures the world's first-ever Bluetooth-enabled church bench, estimated its short-run costs using a U-shaped average variable cost function
PewTooth, the popular new startup company that manufactures the world's first-ever Bluetooth-enabled church bench, estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results. Total fixed cost (TFC) at PewTooth is $1,140.
Adjusted R Square | 0.853 | |||
Coefficients | Standard Error | t Stat | P-value | |
Intercept | 37.94 | 3.51 | 10.81 | 0.0004 |
Q | -3.45 | 0.77 | -4.48 | 0.0003 |
Q^2 | 0.24 | 0.04 | 6.74 | 0.0000 |
a. What level of output (Q)7.19 is associated with the minimum AVC? What is the value of AVC at this minimum?$30 ( 25.54 on my excel)
b. Determine equations for ATC, TC, and MC. Graph one scatterplot of Q vs. TC, and another scatterplot of Q vs. ATC, AVC, and MC.
c. When output is 12, how much is TC 275, AVC,25 ATC23, and MC16?
d. At what amount of output does labor change from exhibiting increasing returns to decreasing returns?7.5 labor
PLEASE MAKE SURE ALL CALCULATIONS ARE CORRECT AND SHOW ALL THE MATH WORK AND ALL FORMULAS
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started