(a) A micro-entrepreneur produces caps and hats for women. The output-cost data of thebusiness is reproduced below:OutputTotal Cost5089010092015010002001260250147030018503502410Using the above data estimate total cost equation and determine the average and marginalcost functions. Dstermine the output rate that will minimize average tost and the perit

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Answered: caps ness is reproduced below: Output…

Business

Economics

caps ness is reproduced below: Output Total Cost 50 890 100 920 150 1000 200 1260 250 1470 300 1850

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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Question

(a) A micro-entrepreneur produces caps and hats for women. The output-cost data of the
business is reproduced below:
Output
Total Cost
50
890
100
920
150
1000
200
1260
250
1470
300
1850
350
2410
Using the above data estimate total cost equation and determine the average and marginal
cost functions. Dstermine the output rate that will minimize average tost and the perit

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