Refer to the cost regression for Straker Industries shown below. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form \[A V C = a + b Q + c Q ^ { 2 }\] and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. \[\begin{array} { r l l l l l } \text { DEPENDENTVARIAELE: } & \text { AVC } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\ \text { OESERVATIONS: } & \text { 35 } & \mathbf { 0 . 8 7 1 3 } & 108.3 & \mathbf { 0 . 0 0 0 1 } & \\ & & \begin{array} { l } \text { PARAMETER } \end{array} & \text { STANDARD } & & \\ \text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\ \text { INTERCEPT } & & 43.40 & 13.80 & \mathbf { 3 . 1 4 } & \mathbf { 0 . 0 0 3 6 } \\ \text { Q } & & - \mathbf { 2 . 8 0 } & \mathbf { 0 . 9 0 } & - \mathbf { 3 . 1 1 } & \mathbf { 0 . 0 0 3 9 } \\ \text { Q2 } & & \mathbf { 0 . 2 0 } & \mathbf { 0 . 0 5 } & 4.00 & \mathbf { 0 . 0 0 0 4 } \end{array}\] -If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?

A) $171.40 B) $463.20 C) $1,348 D) $2,348 A) $171.40 B) $463.20 C) $1,348 D) $2,348

Refer to the cost regression for Straker Industries shown below. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form \[A V C = a + b Q + c Q ^ { 2 }\] and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. \[\begin{array} { r l l l l l } \text { DEPENDENTVARIAELE: } & \text { AVC } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\ \text { OESERVATIONS: } & \text { 35 } & \mathbf { 0 . 8 7 1 3 } & 108.3 & \mathbf { 0 . 0 0 0 1 } & \\ & & \begin{array} { l } \text { PARAMETER } \end{array} & \text { STANDARD } & & \\ \text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\ \text { INTERCEPT } & & 43.40 & 13.80 & \mathbf { 3 . 1 4 } & \mathbf { 0 . 0 0 3 6 } \\ \text { Q } & & - \mathbf { 2 . 8 0 } & \mathbf { 0 . 9 0 } & - \mathbf { 3 . 1 1 } & \mathbf { 0 . 0 0 3 9 } \\ \text { Q2 } & & \mathbf { 0 . 2 0 } & \mathbf { 0 . 0 5 } & 4.00 & \mathbf { 0 . 0 0 0 4 } \end{array}\] -If Straker Industries produces 20 units of output, what is estimated total variable cost (TVC)?

A) $1,348 B) $1,498 C) $2,348 D) $4,428 A) $1,348 B) $1,498 C) $2,348 D) $4,428

Refer to the cost regression for Straker Industries shown below. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form \[A V C = a + b Q + c Q ^ { 2 }\] and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. \[\begin{array} { r l l l l l } \text { DEPENDENTVARIAELE: } & \text { AVC } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\ \text { OESERVATIONS: } & \text { 35 } & \mathbf { 0 . 8 7 1 3 } & 108.3 & \mathbf { 0 . 0 0 0 1 } & \\ & & \begin{array} { l } \text { PARAMETER } \end{array} & \text { STANDARD } & & \\ \text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\ \text { INTERCEPT } & & 43.40 & 13.80 & \mathbf { 3 . 1 4 } & \mathbf { 0 . 0 0 3 6 } \\ \text { Q } & & - \mathbf { 2 . 8 0 } & \mathbf { 0 . 9 0 } & - \mathbf { 3 . 1 1 } & \mathbf { 0 . 0 0 3 9 } \\ \text { Q2 } & & \mathbf { 0 . 2 0 } & \mathbf { 0 . 0 5 } & 4.00 & \mathbf { 0 . 0 0 0 4 } \end{array}\] -If Straker Industries produces 12 units of output, what is estimated average total cost (ATC)?

A) $121.93 B) $171.40 C) $463.20 D) $1,348 A) $121.93 B) $171.40 C) $463.20 D) $1,348

For the short-run cost function AVC = a + bQ + cQ2,

A) the AVC curve is $\cup$ -shaped when a 0, and c 0, b 0. C) the corresponding SMC function is $S M C = a Q + 2 b Q ^ { 2 } + 3 c Q ^ { 3 }$ . D) both a and c E) all of the above A) the AVC curve is $\cup$ -shaped when a 0, and c 0, b 0. C) the corresponding SMC function is $S M C = a Q + 2 b Q ^ { 2 } + 3 c Q ^ { 3 }$ . D) both a and c E) all of the above

Exam 10: Production and Cost Estimation

With a cubic production function of the form $Q = a K ^ { 3 } L ^ { 3 } + b K ^ { 2 } L ^ { 2 }$ , in order for the average and marginal product functions to have their theoretical properties, it must be the case that

(Multiple Choice)

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Question 21

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 2,000 units, what is short-run marginal cost (SMC)?

(Multiple Choice)

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Question 22

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At what level of labor usage does the maximum average product occur?

(Multiple Choice)

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Question 23

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 2,000 units, what is average variable cost (AVC)?

(Multiple Choice)

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Question 24

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 60 units of labor, what is marginal product?

(Multiple Choice)

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Question 25

An average variable cost function is estimated as $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$ Which of the following cost functions is associated with this estimate?

(Multiple Choice)

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Question 26

Refer to the cost regression for Straker Industries shown below. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. DEPENDENTVARIAELE: AVC R-SQUARE F-RATIO P-VALUE ON F OESERVATIONS: 35 108.3 PARAMETER STANDARD VARIAELE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 Q - - Q2 4.00 -If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?

(Multiple Choice)

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Question 27

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -If Greene Enterprises produces 6,000 units of output, what is estimated short-run marginal cost (SMC)?

(Multiple Choice)

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Question 28

When estimating a short-run average variable cost function,

(Multiple Choice)

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Question 29

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 20 units of labor, what is marginal product?

(Multiple Choice)

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Question 30

The opportunity cost of capital owned by the firm should reflect

(Multiple Choice)

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Question 31

Refer to the cost regression for Straker Industries shown below. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. DEPENDENTVARIAELE: AVC R-SQUARE F-RATIO P-VALUE ON F OESERVATIONS: 35 108.3 PARAMETER STANDARD VARIAELE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 Q - - Q2 4.00 -If Straker Industries produces 20 units of output, what is estimated total variable cost (TVC)?

(Multiple Choice)

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Question 32

Refer to the cost regression for Straker Industries shown below. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form $A V C = a + b Q + c Q ^ { 2 }$ and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. DEPENDENTVARIAELE: AVC R-SQUARE F-RATIO P-VALUE ON F OESERVATIONS: 35 108.3 PARAMETER STANDARD VARIAELE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 Q - - Q2 4.00 -If Straker Industries produces 12 units of output, what is estimated average total cost (ATC)?

(Multiple Choice)

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Question 33

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -What is average product when it is at its maximum level?

(Multiple Choice)

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Question 34

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 2,000 units, average variable cost (AVC) is

(Multiple Choice)

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Question 35

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 20 units of labor, what is average product?

(Multiple Choice)

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Question 36

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 6,000 units, average variable cost (AVC) is

(Multiple Choice)

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Question 37

For the short-run cost function AVC = a + bQ + cQ²,

(Multiple Choice)

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Question 38

Refer to the following: A firm estimates its long-run production function to be $Q = - 0.0075 K ^ { - 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$ Suppose the firm employs 12 units of capital. -At ________ units of labor, average product of labor begins to diminish.

(Multiple Choice)

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Question 39

Which of the following is an estimable form of a production function?

(Multiple Choice)

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Question 40

With a cubic production function of the form $Q = a K ^ { 3 } L ^ { 3 } + b K ^ { 2 } L ^ { 2 }$ , in order for the average and marginal product functions to have their theoretical properties, it must be the case that

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 2,000 units, what is short-run marginal cost (SMC)?

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At what level of labor usage does the maximum average product occur?

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 2,000 units, what is average variable cost (AVC)?

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 60 units of labor, what is marginal product?

An average variable cost function is estimated as $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$ Which of the following cost functions is associated with this estimate?

When estimating a short-run average variable cost function,

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 20 units of labor, what is marginal product?

The opportunity cost of capital owned by the firm should reflect

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -What is average product when it is at its maximum level?

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 2,000 units, average variable cost (AVC) is

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 20 units of labor, what is average product?

Refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000. -When Greene's output is 6,000 units, average variable cost (AVC) is

For the short-run cost function AVC = a + bQ + cQ²,

Refer to the following: A firm estimates its long-run production function to be $Q = - 0.0075 K ^ { - 3 } L ^ { 3 } + 12 K ^ { 2 } L ^ { 2 }$ Suppose the firm employs 12 units of capital. -At ________ units of labor, average product of labor begins to diminish.

Which of the following is an estimable form of a production function?

Managers, Profits, and Markets

Demand, Supply, and Market Equilibrium

Marginal Analysis for Optimal Decisions

Basic Estimation Techniques

Theory of Consumer Behavior

Elasticity and Demand

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost in the Long Run

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

Exam 10: Production and Cost Estimation

With a cubic production function of the form Q=aK3L3+bK2L2Q = a K ^ { 3 } L ^ { 3 } + b K ^ { 2 } L ^ { 2 }Q=aK3L3+bK2L2 , in order for the average and marginal product functions to have their theoretical properties, it must be the case that

Refer to the following: A short-run production function was estimated as Q=−0.002L3+0.16L2Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }Q=−0.002L3+0.16L2 -At what level of labor usage does the maximum average product occur?

Refer to the following: A short-run production function was estimated as Q=−0.002L3+0.16L2Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }Q=−0.002L3+0.16L2 -At 60 units of labor, what is marginal product?

An average variable cost function is estimated as AVC=96−2Q+0.05Q2A V C = 96 - 2 Q + 0.05 Q ^ { 2 }AVC=96−2Q+0.05Q2 Which of the following cost functions is associated with this estimate?

When estimating a short-run average variable cost function,

Refer to the following: A short-run production function was estimated as Q=−0.002L3+0.16L2Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }Q=−0.002L3+0.16L2 -At 20 units of labor, what is marginal product?

The opportunity cost of capital owned by the firm should reflect

Refer to the following: A short-run production function was estimated as Q=−0.002L3+0.16L2Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }Q=−0.002L3+0.16L2 -What is average product when it is at its maximum level?

Refer to the following: A short-run production function was estimated as Q=−0.002L3+0.16L2Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }Q=−0.002L3+0.16L2 -At 20 units of labor, what is average product?

For the short-run cost function AVC = a + bQ + cQ2,

Which of the following is an estimable form of a production function?

Managers, Profits, and Markets

Demand, Supply, and Market Equilibrium

Marginal Analysis for Optimal Decisions

Basic Estimation Techniques

Theory of Consumer Behavior

Elasticity and Demand

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost in the Long Run

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

With a cubic production function of the form $Q = a K ^ { 3 } L ^ { 3 } + b K ^ { 2 } L ^ { 2 }$ , in order for the average and marginal product functions to have their theoretical properties, it must be the case that

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At what level of labor usage does the maximum average product occur?

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 60 units of labor, what is marginal product?

An average variable cost function is estimated as $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$ Which of the following cost functions is associated with this estimate?

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 20 units of labor, what is marginal product?

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -What is average product when it is at its maximum level?

Refer to the following: A short-run production function was estimated as $Q = - 0.002 L ^ { 3 } + 0.16 L ^ { 2 }$ -At 20 units of labor, what is average product?

For the short-run cost function AVC = a + bQ + cQ²,