Answer to Question #274846 in Economics of Enterprise for aryan

Question

Vibhash, a Surat based garment manufacturing plant has been operating for ten periods. The output

rate (in tonnes) and the total cost for each period are shown here. (20 marks)

Period Output Total Cost Period Output Total Cost

1 4 13 lacs 6 11 19 lacs

2 12 17 lacs 7 6 12.5 lacs

3 21 44 lacs 8 27 95 lacs

4 16 29 lacs 9 19 35.5 lacs

5 30 105 lacs 10 8 14 lacs

a. Use excel to find the cubic total cost function.

b. Use the estimated total cost function to derive equations for average cost and marginal cost.

c. Using the same data, compute average costs for each of the ten periods. Using the computed

average cost data, estimate the quadratic average cost function.

Answer 1

Use excel to find: