Please answer the following questions.
A B C D Hours Feet Large Elevator 2 24.00 545 3 Yes 3 13.50 400 2 Yes 4 26.25 562 2 No 5 25.00 540 2 No 6 9.00 220 1 Yes 20.00 344 3 Yes 8 22.00 569 2 Yes 9 11.25 340 1 Yes 10 50.00 900 6 Yes 11 12.00 285 1 Yes 12 38.75 865 4 Yes 13 40.00 831 4 Yes 14 19.50 344 3 Yes 15 18.00 360 2 Yes 16 28.00 750 3 Yes 17 27.00 650 2 Yes 18 21.00 415 2 No 19 15.00 275 2 Yes 20 25.00 557 2 Yes 21 45.00 1028 5 Yes 22 29.00 793 4 Yes 23 21.00 523 3 Yes 24 22.00 564 3 Yes 25 16.50 312 2 Yes 26 37.00 757 3 No 27 32.00 600 3 No 28 34.00 796 3 Yes 29 25.00 577 3 Yes 30 31.00 500 4 Yes 31 24.00 695 3 Yes 32 40.00 1054 4 Yes 33 27.00 486 3 Yes 34 18.00 442 2 Yes 35 62.50 1249 5 No 36 53.75 995 6 Yes 37 79.50 1397 7 No 381. Why do you think that whenever governments (federal and state) want to increase revenues, they usually propose an increase in taxes on cigarettes and alcohol? (Hint: price elasticity of demand.) 2. The manufacturer of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for the product are assumed to be as follows: TC = 500,000 + 0.85Q + 0.015Q2 Q = 14,166 - 16.6P Suppose the manufacturer is a monopolist. Determine the short-run profit-maximizing price and quantity combination. 3. Two firms produce luxury sheepskin auto seat covers: Western Where and B.B.B. Sheep. Suppose both firms have zero marginal cost. MC1 = MC2 = 0 The market demand for these seat covers is represented by the inverse demand function P = 420 - 70 where Q = Q1 + 02 is the total output. a. If the two firms collude to act as a joint monopolist (i.e., both firms act to maximize joint profit) and agree to share the profits equally, what will be the profit-maximizing choice of output for each firm? What is the market price P? b. If both firms behave as Cournot oligopolists (i.e., each firm acts to maximize its profit, taking its rival's output as given), what will be the equilibrium quantity select by each firm? What is the total output Q and the market price P? 4. The owner of a moving company typically has his most experienced manager predict the total number of labor hours that will be required to complete an upcoming move. This approach has proved useful in the past, but the owner has the business objective of developing a more accurate method of predicting labor hours. In a preliminary effort to provide a more accurate method, the owner has decided to use the number of cubic feet moved and the number of pieces of large furniture as the independent variables and has collected data for 36 moves in which the origin and destination were within the borough of Manhattan in New York City and the travel time was an insignificant portion of the hours worked. The data were organized and stored in Moving. a. State the multiple regression equation and interpret the meaning of the slopes in this equation. b. Predict the mean labor hours for moving 500 cubic feet with two large pieces of furniture. c. Determine whether there is a significant relationship between labor hours and the two independent variables at the 0.05 level of significance? Explain. d. At the 0.05 level of significance, determine whether each independent variable makes a significant contribution to the regression model. Explain. e. Construct a 95% confidence interval estimate of the population slope between labor hours and the number of cubic feet moved. f. What conclusions can you reach concerning labor hours
