Solution-What level of output is associated with the

What level of output is associated with the minimum avc

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Reference no: EM133062828

GlueTooth®, the popular new startup company that manufacturers the world's first-ever Bluetooth-enabled denture adhesive, estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results. Total fixed cost (TFC) at GlueTooth® is $1,180.

Adjusted R Square	0.633
	Coefficients	Standard Error	t Stat	P-value
Intercept	49.40	4.91	10.06	0.0001
Q	-2.50	1.08	-2.32	0.0329
Q^2	0.18	0.05	3.61	0.0021

A. What level of output (Q) is associated with the minimum AVC? What is the value of AVC at this minimum?

B. Determine equations for ATC, TC, and MC. Graph one scatterplot of Q vs. TC, and another scatterplot of Q vs. ATC, AVC, and MC.

C. When output is 8, how much is TC, AVC, ATC, and MC?

D. At what amount of output does labor change from exhibiting increasing returns to decreasing returns?

Reference no: EM133062828

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What level of output is associated with the minimum avc

Reference no: EM133062828

Reference no: EM133062828

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