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?

User Account

All Pages