Determine the output level that minimizes short-run average

Assignment Help Econometrics
Reference no: EM13214280

A study of costs of electricity generation for a sample of 56 British firms in the 1946-1947 yielded the following long-run cost function: AVC = 1.24 +.0033Q + .0000029Q2 - .000046QZ - .026Z + .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 C. Holding plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable cost and marginal cost functions for electricity generation.

Reference no: EM13214280

Questions Cloud

Evaluate alternative investments with unequal lives : Why is it important to consider cannibalization in situations where a company is considering adding substitute products to its product line and Holding the cutoff period fixed, which method has a more severe bias against long-lived projects, payback..
State what is the ratio the structure of ha for formic acid : the structure of HA for formic acid, and structure of the conjugate base for formic acid?
Find price per unit because of increased foreign competition : Assuming that all other factors remain unchanged, determine how a firm's breakeven point is affected by each of the following: A. The firm finds it necessary to reduce the price per unit because of increased foreign competition.
Explain how many dissociated h+ ions : At 25 degrees celsius how many dissociated H+ ions are in 167 mL of an aqueous sloution whose ph=12.07? hint find concentration of H+
Determine the output level that minimizes short-run average : (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 C. Holding plant size equal to 150,000 kilowatts
Calculate the value of all future dividends at the beginning : How would you protect yourself against his retirement, assuming you don't want to sell the shares today and calculate the value of all future dividends at the beginning of year and what is the present value of P7 at the beginning of year 1
Explain sodium ions are found in the extraellular fluid : Sodium ions are found int eh extraellular fluid in a concentration of 150mM. How many grams per liter is this?
Explain what is the ph of the solution : A monoprotic acid donates a single proton. If you dissolve two aspirin tablets in a 300 m glass of water, what is the pH of the solution
Explain benzene has a heat of vaporization : Benzene has a heat of vaporization of 30.72 kJ/mol and a normal boiling point of 80.1 C. At what temperature does benzene boil when the external pressure is 480 torr?

Reviews

Write a Review

Econometrics Questions & Answers

  What would be the firms cost disadvantage

Suppose that a firm comtemplating entering the market for breakfast cereal would need to invest $100 million in a production plant (or about $10 million annually on an amortized basis). Such a plant could produce about 100 million pounds of cereal..

  In which city is the hotel room cheaper

Suppose the Canadian dollar (C$) price of one British pound is C$2.12. A hotel room in London costs 120 pounds, while a similar hotel room in Toronto costs C$250. In which city is the hotel room cheaper, and by how much

  Calculate the correct beta values

When watching television after dinner, you suffer memory loss. You can not remember what demonstrate you just watched or what you ate for dinner.

  Provide an argument against the proposal

The manager of the company's pension fund is compensated based entirely on fund performance; he earned $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000.

  What is present worth of planned expenditures at an interest

a company expects to replace office machines and computer equipment at various times over the 6-year planning period. Specifically. The company expects to spend $21000 two years from now. $24000 three years from now. $10000 five years from now.

  What is the money multiplier

If the reserve ratio is lowered to 8%, what is the money multiplier and what is the maximum amount of money created by the same $5000 deposit, In a t-account show the bank balances for a $5000 deposit with a 10% reserve ratio. What is the money mu..

  What is marginal revenue from the 200th pizza sold this week

Sal's Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20 per pizza at a quantity of 200 pizzas per week. Its marginal cost is $12 per pizza when it produces fewer than 180 pizzas per week.

  What is the probability that a pga tour player makes a putt

Further analysis showed that for putts that were made 64.0% of the time the player was attempting to make a par putt and 18.8% of the time the player was attempting to a birdie putt. What is the probability that a PGA Tour player makes a putt

  Determine wilburs demand function for good

Assume Wilbur's utility function is U=(x1)*(x2)*(x3). Further assume that the law dictates that Wilbur consume two units of X1 for every unit of X2. Determine Wilbur's demand function for good 1. Explain, in words, all the steps in your deriv..

  Which system is expected to generate positive cash flows

The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Rent-to-Own's required rate of return is 8%.

  Does either individual have a comparative advantage

The following numbers measure the tradeoff between grades and income: Total Hours Hours Hours Studying GPA Working Income 60 60 4.0 0 $ 0 60 40 3.0 20 $100 60 30 2.0 30 $150 60 10 1.0 50 $250 60 0 0.0 60 $300 Total Hours Hours Hours Studying GPA

  What is maxs income level and demand function

(a) If the price of x1 is 2, the price of x2 is 1, and Max's income is 10, how much x1 will Max consume How much x2 (b) Suppose that Max's income level is 10. Derive Max's demand function for x1. Is x2 a substitute of x1 or a complement of it

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd