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The costs have been adjusted for inflation by deflating

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Palm Products Company has collected data on its average variable costs of production for the past 12 months. The costs have been adjusted for inflation by deflating with an appropriate price index. The AVC and associated output data are presented below;obs Q AVC obs Q AVC;1 22 $208 7 45 $172;2 31 202 8 45 158;3 31 206 9 45 173;4 25 214 10 62 170;5 41 174 11 62 152;6 41 203 12 70 175;Present (state) the estimated average variable cost, total variable cost, and short-run marginal;cost functions.;At what level of output does AVC reach its minimum value? What is the minimum value of AVC at its minimum?

 

Paper#21308 | Written in 18-Jul-2015

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