The values of average variable cost (AVC), average total cost (ATC) and marginal cost (MC) and complete the table. Concept Introduction: Average variable cost (avc) = total variable cost (tvc)/quantity Average total cost (atc) = total cost (tc)/quantity Marginal cost (mc) =change in total cost/change in quantity

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3. Consider the following regression equation, where Cigs is daily spending on cigarettes in poundssterling (£), Y earsEduc is years of education, and F emale equals one if an individual is femaleand zero otherwise (standard errors in parentheses):Cigs [ = 4(1.6)− 0.08(0.032)Y earsEduc − 0.5(0.2)F emale,(a) Interpret the coefficients on Y earsEduc and F emale. (b) What does the model predict the average daily spending on cigarettes would be for womenwith 12 years of education? (c) Form the 95% confidence interval for the coefficient on F emale. (d) Economists are often interested in estimating production functions of the Cobb-Douglas form(Yiis the ith firm’s output, Liits spending on labour, and Kiits spending on capital):Yi = ALαi Kβi,How might someone estimate α and β from this equation using linear regression?

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Question

Chapter 7, Problem 9P

To determine

To determine:

The values of average variable cost (AVC), average total cost (ATC) and marginal cost (MC) and complete the table.

Concept Introduction:

Average variable cost (avc) = total variable cost (tvc)/quantity

Average total cost (atc) = total cost (tc)/quantity

Marginal cost (mc) =change in total cost/change in quantity

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