Use the following regression results to answer the four questions below.

Dependent Variable: Q Observations: 32 R2: 0.7547 F-ratio: 92.31 p-ratio on F: 0.0001

Variable	Parameter Estimate	Standard Error	t-ratio	p-value
L3	-0.0016	0.0005	-3.20	0.0032
L2	0.4000	0.0950	4.21	0.0002

Question 1

Which of the following equations is derived correctly?

a. Q=?0.0016L3+0.4000L2+0.0005L+0.7547

b. AP=0.000533L2?0.1333L

c. MP=?0.0048L2+0.8000L

d. AP=?0.0032L2+0.8000L

Question 2

The coefficient estimates above are statistically significant at the 10% level.

a. True

b. False

Question 3

The slope of the AP curve is found by ________; AP is maximized at ________ units of labor.

a. ?0.0032L+0.4

L=125

b. ?0.0032L2+0.2L

L=62.5

c. ?0.0096L+0.8

L=83.33

d. ?0.0016L2+0.4L

L=250

For this problem I chose a topic that is very relevant to my life...

Here are some historicalprices of Oreos per pound, along with the "food at home" category of the CPI:

Year	$/lb (Dollars per pound)	CPIfood
1954	$0.46	30.1
1964	$0.39	32.7
1974	$0.59	57.1
1984	$1.43	102.8
1994	$1.99	144.1
2004	$2.99	186.2
2014	$5.02	239.5
2018	$3.35	239.6

Question 4

The 1964 price is about one-tenth the 2018 price; the most likely reason why there is such a large disparity is because

a. the availability of cookies and cream has increased dramatically since 1964.

b. Oreos are in a highly competitive industry and the company has to keep prices low to compete with other cookie manufacturers.

c. demand has declined significantly, so the company needs to charge much higher prices to make a profit.

d. the value of a single dollar was much larger in 1964 than in 2018.

Question 5

The nominal price in 2004 ($2.99) is less than the nominal price in 2018 ($3.35); how do the real prices compare?

a. The difference between the real prices is equal to the difference between the nominal prices.

b. The 2004 real price is greater than the 2018 real price.

c. The 2004 real price is less than the 2018 real price.

d. The difference between the real prices is even greater than the difference between the nominal prices.

Question 6

The real price, using year 2018 dollars, of a pound of Oreos in 1974 is ______.

Select one:

a. $2.73

b. $2.48

c. $1.95

d. 14

Question7

An average variable cost function is estimated as

AVC=34?7Q+0.08Q2AVC=34?7Q+0.08Q2

Which of thefollowing cost functions is associated with this estimate?

a. TVC=34Q?7Q2+0.08Q3

b. MC=34Q?14Q2+0.24Q3

c. MC=96?4Q+0.1Q2

d. ATC=34/Q?7+0.08Q

Question8

A separate set of data results in the following graphs ofTVC,AVC, andMC:

400000 350000 300 000 250000 200000 -TVC 150000 100000 50000 0 2000 4000 6000 8000 180 160 140 120 100 -AVC 80 -MC 60 40 20 0 0 2000 4000 6000 8000