Homework Help is Here – Start Your Trial Now!
Business
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: (Source: Johnston, "Chapter 4," in Statistical Cost Analysis) AVC = 1.24 + 0.0033Q + Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts 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.) What is the long-run total variable cost function for electricity generation? O +0.0033 +0.00000290 -0.000046Z - 0.026Z + 0.0001822 Q Q 1.24 0.00000290² O 0.0033 +20.00000290 -0.000046Z O 0.0033Q +20.00000290²-0.000046 QZ O 1.24Q +0.0033Q² +0.0000029Q³ - 0.000046Q²Z-0.026ZQ+0.00018Z²Q What is the long-run marginal cost function for electricity generation? O 0.0033Q +20.0000029Q² +0.000046 QZ O 1.24 +0.0066Q+0.0000087Q² -0.000092QZ-0.026Z+0.00018Z² 1.24 Q +0.0033 +0.0000029Q+0.000046Z+ 0.0001822 Q O 1.24Q +0.0033Q² +0.0000029Q³ +0.000046Q²Z+0.026ZQ+0.00018Z²Q O 1.39 -0.0036Q+0.0000029Q² O 1.24+0.0033Q+0.0000029Q² O 1.39 +0.0066Q+0.0000029Q² O 1.39-0.0072Q + 0.0000029Q² 0.000046 QZ 0.026Z Q O 1.24 +0.0033Q+0.0000029Q² + 0.026Z + 0.000182² Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in thousands of kilowatts)

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: (Source: Johnston, "Chapter 4," in Statistical Cost Analysis) AVC = 1.24 + 0.0033Q + Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts 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.) What is the long-run total variable cost function for electricity generation? O +0.0033 +0.00000290 -0.000046Z - 0.026Z + 0.0001822 Q Q 1.24 0.00000290² O 0.0033 +20.00000290 -0.000046Z O 0.0033Q +20.00000290²-0.000046 QZ O 1.24Q +0.0033Q² +0.0000029Q³ - 0.000046Q²Z-0.026ZQ+0.00018Z²Q What is the long-run marginal cost function for electricity generation? O 0.0033Q +20.0000029Q² +0.000046 QZ O 1.24 +0.0066Q+0.0000087Q² -0.000092QZ-0.026Z+0.00018Z² 1.24 Q +0.0033 +0.0000029Q+0.000046Z+ 0.0001822 Q O 1.24Q +0.0033Q² +0.0000029Q³ +0.000046Q²Z+0.026ZQ+0.00018Z²Q O 1.39 -0.0036Q+0.0000029Q² O 1.24+0.0033Q+0.0000029Q² O 1.39 +0.0066Q+0.0000029Q² O 1.39-0.0072Q + 0.0000029Q² 0.000046 QZ 0.026Z Q O 1.24 +0.0033Q+0.0000029Q² + 0.026Z + 0.000182² Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in thousands of kilowatts)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 3E
See similar textbooks
icon
Related questions
Question
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: (Source: Johnston, "Chapter 4," in Statistical Cost Analysis) AVC = 1.24 + 0.0033Q + 0.00000290² Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts 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.) What is the long-run total variable cost function for electricity generation? 1.24 +0.0033 +0.0000029Q -0.000046Z 0.026Z 0.000182² Q Q Q ○ 0.0033 +20.0000029Q -0.000046 Z O 0.0033Q +20.00000290² - 0.000046 QZ O 1.24Q +0.0033Q² +0.0000029Q³ – 0.000046Q²Z – 0.026ZQ+0.00018Z²Q What is the long-run marginal cost function for electricity generation? 0.000046 QZ O 0.0033Q +20.0000029Q² +0.000046 QZ O 1.24 +0.0066Q+0.0000087Q² - 0.000092QZ – 0.026Z+0.00018Z2 O +0.0033 +0.0000029Q+0.000046Z+ 1.24 Q 0.026Z 0.0001822 + Q Q O 1.24Q +0.0033Q² +0.0000029Q³ +0.000046Q²Z+0.026ZQ+0.00018Z²Q O 1.39 -0.0036Q+0.0000029Q² O 1.24 +0.0033Q+0.0000029Q² O 1.39 +0.0066Q+0.0000029Q² O 1.39-0.0072Q + 0.0000029Q² 0.026Z + 0.000182² Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) O 1.24 +0.0033Q+0.0000029Q² O 1.39 -0.0072Q+0.0000087Q² O 1.39 +0.0066Q+0.0000029Q² O 1.39 -0.0036Q+0.0000029Q² Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) For a plant size equal to 150,000 kilowatts, what is the output level that minimizes short-run average variable costs? year At the output level thus obtained, the short-run average variable cost is ▼pence per kWh and the short-run marginal cost is per kWh. million kWh per pence
Transcribed Image Text: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: (Source: Johnston, "Chapter 4," in Statistical Cost Analysis) AVC = 1.24 + 0.0033Q + 0.00000290² Q = output; measured in millions of kWh per year Z = plant size; measured in thousands of kilowatts 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.) What is the long-run total variable cost function for electricity generation? 1.24 +0.0033 +0.0000029Q -0.000046Z 0.026Z 0.000182² Q Q Q ○ 0.0033 +20.0000029Q -0.000046 Z O 0.0033Q +20.00000290² - 0.000046 QZ O 1.24Q +0.0033Q² +0.0000029Q³ – 0.000046Q²Z – 0.026ZQ+0.00018Z²Q What is the long-run marginal cost function for electricity generation? 0.000046 QZ O 0.0033Q +20.0000029Q² +0.000046 QZ O 1.24 +0.0066Q+0.0000087Q² - 0.000092QZ – 0.026Z+0.00018Z2 O +0.0033 +0.0000029Q+0.000046Z+ 1.24 Q 0.026Z 0.0001822 + Q Q O 1.24Q +0.0033Q² +0.0000029Q³ +0.000046Q²Z+0.026ZQ+0.00018Z²Q O 1.39 -0.0036Q+0.0000029Q² O 1.24 +0.0033Q+0.0000029Q² O 1.39 +0.0066Q+0.0000029Q² O 1.39-0.0072Q + 0.0000029Q² 0.026Z + 0.000182² Holding plant size constant at 150,000 kilowatts, what is the short-run average variable cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) O 1.24 +0.0033Q+0.0000029Q² O 1.39 -0.0072Q+0.0000087Q² O 1.39 +0.0066Q+0.0000029Q² O 1.39 -0.0036Q+0.0000029Q² Holding plant size constant at 150,000 kilowatts, what is the short-run marginal cost function for electricity generation? (Note: Z is measured in thousands of kilowatts) For a plant size equal to 150,000 kilowatts, what is the output level that minimizes short-run average variable costs? year At the output level thus obtained, the short-run average variable cost is ▼pence per kWh and the short-run marginal cost is per kWh. million kWh per pence
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Function
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS