Calculate scale elasticity at the mean of the data

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Reference no: EM13156644

A financial analyst has reported the following information about Shangui Corporationâ€^TMs cost and production structure:

Year	Total Cost (TC) ($10,000)	Quantity Produced (Q) (Unit)
2009	20	50
2010	22	100
2011	24	120
2012	26	130

Use Ordinary Least Squares Method (OLS) to estimate the ABC Corporationâ€^TMs total cost function; that is, TC = Î² + Î² Q ;

What is ABC Coâ€^TMs marginal cost?

What is ABC Coâ€^TMs fixed cost?

Calculate scale elasticity at the mean of the data;

In order to reduce unit cost would you recommend an increase or a decrease in total production? Why?

Reference no: EM13156644

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