The following cost-output data were obtained as part of a study of the economies of scale in operating a charter high school in Wisconsin: (see attachment) 3. What type of cost-output relationship (linear, quadratic, cubic) is suggested by these statistical results?
The following cost-output data were obtained as part of a study of the economies of scale in operating a charter high school in Wisconsin:
(see attachment)
3. What type of cost-output relationship (linear, quadratic, cubic) is suggested by these statistical results?
4.What variables (other than enrollment) would appear to be most important in explaining variations in operating expenditures per student?
5.Holding constant the effects of the other variables ( through ), determine the enrollment level (Q) at which average operating expenditures per student are minimized. (Hint: Find the value of Q that minimizes the (∂C/∂Q function.)
6.Again, holding constant the effects of the other variables, use the ∂C/ ∂Q function to determine, for a school with 500 students, the reduction in per-student operating expenditures that will occur as the result of adding one more student.
7.Again, holding the other variables constant, what would be the saving in perstudent operating expenditures of an increase in enrollment from 500 to 1,000?
8.Based on the results of this study, what can we conclude about the existence of scale and scope economies or diseconomies in operating a public high school?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
