Economist T. Yntema estimated the short-run total cost function of the United States Steel Corporation in the 1930s to be as follows: C=182.1+55.73Q where C is total annual cost (in millions of dollars) and Q is millions of tons of steel produced. a. b. C. What was U.S. Steel's fixed costs? If U.S. Steel produced 10 million tons of steel, what was its average variable costs? What was U.S. Steel's marginal costs?
Economist T. Yntema estimated the short-run total cost function of the United States Steel Corporation in the 1930s to be as follows: C=182.1+55.73Q where C is total annual cost (in millions of dollars) and Q is millions of tons of steel produced. a. b. C. What was U.S. Steel's fixed costs? If U.S. Steel produced 10 million tons of steel, what was its average variable costs? What was U.S. Steel's marginal costs?
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![Economist T. Yntema estimated the short-run total cost function of the United States
Steel Corporation in the 1930s to be as follows:
C=182.1+55.73Q
where C is total annual cost (in millions of dollars) and Q is millions of tons of steel
produced.
a.
b.
C.
d.
What was U.S. Steel's fixed costs?
If U.S. Steel produced 10 million tons of steel, what was its average
variable costs?
What was U.S. Steel's marginal costs?
If there were diminishing marginal returns to the variable inputs in the
production of steel, do you think that this equation provided a faithful
representation of U.S. Steel's short-run total cost function? Briefly explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab7a93e1-40d3-4bdc-a63d-a1a4acc86cc1%2F6da29c24-1fce-4b3b-8e82-19660af11538%2Frezhqjt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economist T. Yntema estimated the short-run total cost function of the United States
Steel Corporation in the 1930s to be as follows:
C=182.1+55.73Q
where C is total annual cost (in millions of dollars) and Q is millions of tons of steel
produced.
a.
b.
C.
d.
What was U.S. Steel's fixed costs?
If U.S. Steel produced 10 million tons of steel, what was its average
variable costs?
What was U.S. Steel's marginal costs?
If there were diminishing marginal returns to the variable inputs in the
production of steel, do you think that this equation provided a faithful
representation of U.S. Steel's short-run total cost function? Briefly explain.
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