Johnston, "Chapter 4," in Statistical Cost Analysis) AVC 1.24 0.0033Q + 0.0000029Q² 0.000046 QZ 0.026Z + 0.00018Z² where AVC = average variable cost (i.e., working costs of generation), measured in pence per kilowatt-hour (kWh). (A pence was a British monetary unit equal, at that time, to 2 cents U.S.) Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts What is the long-run total variable cost function for electricity generation? 0.0033 +20.0000029Q -0.000046Z ○ 1.24Q+0.0033Q² +0.000002903 -0.000046Q2Z-0.026ZQ+0.00018Z²Q ○ 0.0033Q+20.0000029Q² -0.000046 QZ 1.24+0.0033+0.0000029Q-0.000046 Z-0.02 + Q 0.00018Z Q What is the long-run marginal cost function for electricity generation? 1.24+0.0066Q+0.0000087Q² -0.000092QZ-0.026Z +0.00018 Z² ○ 0.0033Q+20.0000029Q² + 0.000046 QZ 1.24+0.0033+0.0000029+0.000046Z+ 0.025% 0.00018Z Q Q ○ 1.24Q+0.0033Q² +0.000002903+0.000046Q2Z +0.026ZQ+0.00018Z²Q Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) 1.39+0.0066Q+0.0000029Q² 1.39-0.0072Q+0.0000029Q2 1.39-0.0036Q+0.0000029Q2 1.24+0.0033Q+0.0000029Q2 Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) 1.39 -0.0072Q+0.0000087Q2 ○ 1.39 -0.0036Q+0.0000029Q² 1.39+0.0066Q+0.0000029Q² 1.24+0.0033Q+0.0000029Q2 For a plant size equal to 150,000 kilowatts, what is the output level that minimizes short-run average variable costs? year million kWh per At the output level thus obtained, the short-run average variable cost is per kWh. pence per kWh and the short-run marginal cost is pence
Johnston, "Chapter 4," in Statistical Cost Analysis) AVC 1.24 0.0033Q + 0.0000029Q² 0.000046 QZ 0.026Z + 0.00018Z² where AVC = average variable cost (i.e., working costs of generation), measured in pence per kilowatt-hour (kWh). (A pence was a British monetary unit equal, at that time, to 2 cents U.S.) Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts What is the long-run total variable cost function for electricity generation? 0.0033 +20.0000029Q -0.000046Z ○ 1.24Q+0.0033Q² +0.000002903 -0.000046Q2Z-0.026ZQ+0.00018Z²Q ○ 0.0033Q+20.0000029Q² -0.000046 QZ 1.24+0.0033+0.0000029Q-0.000046 Z-0.02 + Q 0.00018Z Q What is the long-run marginal cost function for electricity generation? 1.24+0.0066Q+0.0000087Q² -0.000092QZ-0.026Z +0.00018 Z² ○ 0.0033Q+20.0000029Q² + 0.000046 QZ 1.24+0.0033+0.0000029+0.000046Z+ 0.025% 0.00018Z Q Q ○ 1.24Q+0.0033Q² +0.000002903+0.000046Q2Z +0.026ZQ+0.00018Z²Q Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) 1.39+0.0066Q+0.0000029Q² 1.39-0.0072Q+0.0000029Q2 1.39-0.0036Q+0.0000029Q2 1.24+0.0033Q+0.0000029Q2 Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) 1.39 -0.0072Q+0.0000087Q2 ○ 1.39 -0.0036Q+0.0000029Q² 1.39+0.0066Q+0.0000029Q² 1.24+0.0033Q+0.0000029Q2 For a plant size equal to 150,000 kilowatts, what is the output level that minimizes short-run average variable costs? year million kWh per At the output level thus obtained, the short-run average variable cost is per kWh. pence per kWh and the short-run marginal cost is pence
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Johnston, "Chapter 4," in Statistical Cost Analysis)
AVC
1.24
0.0033Q + 0.0000029Q²
0.000046 QZ
0.026Z
+
0.00018Z²
where AVC = average variable cost (i.e., working costs of generation), measured in pence per kilowatt-hour (kWh). (A pence was a British monetary
unit equal, at that time, to 2 cents U.S.)
Q = output; measured in millions of kWh per year
Z = plant size; measured in thousands of kilowatts
What is the long-run total variable cost function for electricity generation?
0.0033 +20.0000029Q -0.000046Z
○ 1.24Q+0.0033Q² +0.000002903 -0.000046Q2Z-0.026ZQ+0.00018Z²Q
○ 0.0033Q+20.0000029Q² -0.000046 QZ
1.24+0.0033+0.0000029Q-0.000046 Z-0.02 +
Q
0.00018Z
Q
What is the long-run marginal cost function for electricity generation?
1.24+0.0066Q+0.0000087Q² -0.000092QZ-0.026Z +0.00018 Z²
○ 0.0033Q+20.0000029Q² + 0.000046 QZ
1.24+0.0033+0.0000029+0.000046Z+ 0.025%
0.00018Z
Q
Q
○ 1.24Q+0.0033Q² +0.000002903+0.000046Q2Z +0.026ZQ+0.00018Z²Q
Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is
measured in thousands of kilowatts)
1.39+0.0066Q+0.0000029Q²
1.39-0.0072Q+0.0000029Q2
1.39-0.0036Q+0.0000029Q2
1.24+0.0033Q+0.0000029Q2
Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in
thousands of kilowatts)
1.39 -0.0072Q+0.0000087Q2
○ 1.39 -0.0036Q+0.0000029Q²
1.39+0.0066Q+0.0000029Q²
1.24+0.0033Q+0.0000029Q2
For a plant size equal to 150,000 kilowatts, what is the output level that minimizes short-run average variable costs?
year
million kWh per
At the output level thus obtained, the short-run average variable cost is
per kWh.
pence per kWh and the short-run marginal cost is
pence
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