User Account

All Pages

Find out long- run variable cost function for electricity

Assignment Help Microeconomics
Reference no: EM13454475

A study of the costs of electricity generation for a sample of 56 British firms in 1946-1947 yielded the following long-run cost function

AVC=1.24+.0033Q + .0000029Q² - .000046QZ - .026Z +.00018Z²

 Where ACV= average variable cost (i.e. working costs of generation) measured in pence per kilowatt-hour (kWh). (A pence was British monetary unit equal, at that time to 2 cent U.S)

Q= output, measured in millions of kWh per year

Z= plant size, measured in thousands of kilowatts

  1. Determine the long- run variable cost function for electricity generation
  2. Determine the long-run marginal cost function for electricity generation
  3. Holding plant size constant at 150,000 kilowatts, determine the short-run average variable cost and marginal cost function for electricity generation
  4. For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs
  5. Determine the short-run average variable  cost and marginal cost at the output level obtained in part (d)

Reference no: EM13454475

Questions Cloud

Assuming that all other factors remain unchanged find out : assuming that all other factors remain unchanged determine how a firms break-even point is affected by each of the
Comprise a description of how energy is transferred from : explain how photosynthesis and respiration are linked in order to provide you with energy from the food you eat.include
Determine whether you prefer debussy or mahler after : great composers and color analysis please respond to the following with 100-150 words using sources under the explore
The estimated annual depreciation of property and equipment : the estimated annual depreciation of the property and equipment is 10 per year of its acquisition cost. the library is
Find out long- run variable cost function for electricity : a study of the costs of electricity generation for a sample of 56 british firms in 1946-1947 yielded the following
Assess the level of interdependence between planning : 1.assess the level of interdependence between planning program evaluation human resource management and budgeting.
Eukaryotic cells in plants animals fungi and algae are : eukaryotic cells in plants animals fungi and algae are bigger than prokaryotic bacterial cells. this bigger size allows
Foam pet mattress company can sell as many pet bed models a : foam pet mattress company can sell as many pet bed models a and b that it can produce but the company has limited
Compare and contrastnbsp the nucleoid area prokaryotic to a : cells can be categorized as either prokaryotic or eukaryotic. only bacterial cells are prokaryotic. for question two

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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