21. The estimation of a Cobb-Douglas production function for 20 firms of a given industryyields:4. 16.907+0.322k; +2.777liR2 = 0.915 DW = 2.032 RSS = 0.461 Use α = 5%4.939971Var ẞ=0.2166390.031857-0.857446 -0.057229 0.166070/where fitted values of naturals logarithms of output (output express in 1000 tons);ki: natural logarithms of capital output (output express in 1000 tons)l: natural logarithms of labour (labour is in hours)RSS: residual sum of squares1: firm indexVar ẞ: variance-covariance matrix of estimatesEvaluate the statistical significance of the coefficients.

The statistical significance of coefficients in a regression model indicates whether the…

Answered: 21. The estimation of a Cobb-Douglas…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 3E

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please do c, d, e
You are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3 TC=100+60Q+3Q2TC=100+60Q+3Q2 TC=100+60QTC=100+60Q b). In each case, indicate the point at which diminishing returns occur. also indicate the point of maximum cost efficiency (i.e., the point of minimum average cost). c). For each function, discuss the relationship between marginal cost and average variable cost and between marginal cost and average. Discuss the relationship between average variable cost and average cost.
Your last submission is used for your score. 1. Need Help? Read It عيمي Burnem Inc. manufactures thumb drives and sells them to a distributor. Burnem's total cost and total revenue (in dollars) for x thumb drives are given by the following equations. Total cost = 5x + 2240 and Total revenue = 10x How many thumb drives must Burnem sell to break even? x = thumb drives Using data from 2010 and projected to 2020, the population of the United Kingdom (y, in millions) can be approximated by the equation 10.0y 4.55x = 581 where x is the number of years after 2000.+ (a) What is the projected population in 2026? y = (b) In what year is the population predicted to be 67.2 million? Disposable income, the amount left after taxes have been paid, is one measure of the health of the economy. Using U.S. Energy Information Administration data for selected years from 2015 and projected to 2040, the U.S. real disposable income per capita (in dollars) can be approximated by the equation I 707.6t + 39,090…
A company estimates that the total revenue, R, in dollars, received from the sale of q items is ? = 3000 + ln(1 + 1000?^3) and the marginal cost is ??(?) = 0.05?^2 − 1.6? + 50. Calculate and interpret the marginal profit if q = 100.
TC 400+150Q-3Q2 +0.02Q3 400 Based on this equation, find total fixed cost calculate total fix cost -
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing)=$47,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $? (Round to the nearest dollar.) The unit price at the point of optimal demand is $? per unit.
A profit making company wants to launch a new product. It observes that the fixed cost of the new product is 35,000 and the variable cost per unit is 500. The revenue function for the sale of x units is given by 5000x- 100x². Find (i) profit function, (ii) break- even values,
only d,e,f please
It is demonstrated that sometimes extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in multiple plants. Suppose a beer brewing company has determined that its monthly total production cost is: TC = 100 Q - 1.2 Q2 + 0 .004Q3 where Q is its monthly output measured in kegs.A. The average hauling (freight) cost is $0.8Q; that is: AHC = 0.8Q. Write the firm's average aggregated cost equation. B. Now suppose the firm is facing the following market demand: Q = 4,000 - 10 P Determine the optimal number of plants that the firm should have to take full advantage of the market demand. C. Calculate the firm's profit.
If the average cost function of a good isAC = 2Q + 6 + 13Find an expression for MC. If the current output is 15, estimate the effect on TC of a 3-unit decrease in Q.
4. Optimize the following function and comment about the findings. y =-5x; +10x, + x,x, - 2x{ +4x; +2x,x, - 4x 7. Minimize the cost of 434 units of production for a firm whenQ = 10K'L and P, = 28, P.=10 by finding the critical values and using the bordered Hessian to satisty the 1" order necessary and 2 order suficient condition.
ADTF Distributors produces and sells a line of virtual sketch pad devices with a micro-USB connection. They find that their profit when producing and selling x devices changes according to the marginal profit function P'(x) = 60 -0.1x. dollars per device. They also know that when only 10 devices are produced and sold their loss can be expressed as P(10) = -650. (a) Find the function for the total profit from producing and selling x virtual sketch pad devices: P(x) = (b) Use your answer to part (a) to complete the following sentence. When ADTF Distributors produces and sells 603 virtual sketch pad devices, we predict that their total profit will be $ (c) From the profit function, we can conclude that the fixed costs when producing the devices is $ Given that the variable costs of the production are $27 per device, then the total cost to produce 603 virtual sketch pad devices will be $ (d) When 603 devices are produced and sold, the selling price must be $ Hint: First, find the total…

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