A study of the costs of electricity generation for a sample, Ask an Expert

Economics

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 +.0000029Q^2 - .000046QZ - .026Z + .00018Z^2

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

A. Determine the long-run variable cost function for electricity generation.

B. Determine the long-run marginal cost function for electricity generation.

C. Holding plant size constant at 150,000 kilowatts, determine the short-run average variable cost and marginal cost functions for electricity generation.

D. For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs.

E. Determine the short-run average variable cost and marginal cost at the output level in Part (d).

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9744490

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question there are three consumers a b and c consumer a is

Question: There are three consumers A, B and C. Consumer A is willing to pay 8-3F dollars for a unit of flowers for the public square, B is willing to pay 2-3F dollars for a unit of flowers, and C is willing to pay 9-3F ...

Question this learning activity focuses on constitutional

Question: This learning activity focuses on constitutional authority to regulate business and constitutional law concepts. Case Scenario: City enacted a city zoning ordinance that barred outdoor advertising display signs ...

Question suppose an economys natural level of output of

Question: Suppose an economy's natural level of output of goods and services generally increases over time. The central bank of the country is responsible for promoting maximum employment and stable prices. How should th ...

Question in early 1975 the government distributed 8 billion

Question: In early 1975, the government distributed $8 billion in one-time tax rebates to try to move the economy out of its most severe post-WWII recession. What impact do you think this had on consumption and saving? I ...

Question what were the business cycles and long-term trend

Question: What were the business cycles and long-term trend of the economy from the 1960s to now, and the main factors behind its growth? The response must be typed, single spaced, must be in times new roman font (size 1 ...

Question after increasing steadily for several years the

Question: After increasing steadily for several years, the LEI turns down by 0.5% one month. What other factors would you examine in determining whether to curtail your business plans ahead of any recession, and how long ...

Question with walmarts success many other stores such as

Question: With WalMart's success, many other stores such as Target, Macy's and Walgreen's decided to implement this strategy and create their own brands. Many consumers opt for these products because they believe that th ...

Question answer questions your answers should be no more

Question: Answer Questions: your answers should be no more than a short paragraph of 3-4 sentences for each of the following questions. Assume that a firm's analysis of its balance condition shows the following: PL = $10 ...

Question you are the manager of a variable hospital

Question: You are the manager of a variable hospital department, and you just received your monthly budget results. Write a brief description answering the following questions: 1. How will you address the short fall if a ...

1 the market demand function for corn isqdnbsp 15 -2pthe

1.) The market demand function for corn is Q d = 15 -2P. The market supply function is Q S = 5P - 2.5, both measured in billions of bushels per year. The initial equilibrium price is $2.5, and the initial equilibrium q ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert