We have the following data for Demand Price and Costs for our product. Quantity Demand Price 100 Costs 500 $35.35 $21.63 $17.25 $2347.67 $5040.00 $7481.67 300 1000 1500 $12.70 $12469.67 $10.26 $16196.00 We have reason to believe that the Demand Price is a power (exponential) function of some kind. Our Cost function is close to linear, but we expect, from some market analysis, that it is in fact quadratic. Approximate this data with a Demand Price function and a Cost function. Explain how confident you are; that is, how much error do you think is reasonable in this type of scenario?
We have the following data for Demand Price and Costs for our product. Quantity Demand Price 100 Costs 500 $35.35 $21.63 $17.25 $2347.67 $5040.00 $7481.67 300 1000 1500 $12.70 $12469.67 $10.26 $16196.00 We have reason to believe that the Demand Price is a power (exponential) function of some kind. Our Cost function is close to linear, but we expect, from some market analysis, that it is in fact quadratic. Approximate this data with a Demand Price function and a Cost function. Explain how confident you are; that is, how much error do you think is reasonable in this type of scenario?
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
Transcribed Image Text:6. We have the following data for Demand Price and Costs for our product.
Quantity
100
Demand Price $35.35
Costs
500
$21.63 $17.25
$2347.67 $5040.00 $7481.67
300
1000
$12.70
$12469.67 $16196.00
1500
$10.26
We have reason to believe that the Demand Price is a power (exponential) function of
some kind. Our Cost function is close to linear, but we expect, from some market
analysis, that it is in fact quadratic. Approximate this data with a Demand Price function
and a Cost function. Explain how confident you are; that is, how much error do you
think is reasonable in this type of scenario?
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