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

A study of the costs of electricity generation for a sample of 56 British firms in Show more PLEASE SHOW WORK A study of the costs of electricity generation for a sample of 56 British firms in 1946-1947 yielded the following long-run cost functions: 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 kilowatz (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 kilowatz a. Determine the long-run average variable cost function for electricity generation b. Determine the long- run marginal cost function for electricity generation. c. Holding plant size constant at 150000 kilowatz determine the short- run average variable cost and marginal cost functions for electricity generation d. For a plant size equal to 150000 kilowatz 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 obtained in part d. Show less

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!

Feeling Lucky?

Enter your email address to spin the wheel for a chance to win exciting offers.