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You have been presented with the following cost data and asked to fit a statistical cost function.
Quantity Total cost
10 104
20 107
30 109
40 111.5
50 114.5
60 118
70 123
80 128
90 137
100 150
If the data represent 10 months of production for one plant of a specific company, would you consider this to be a short run analysis?
How would your answer to question 3 changes if you were told that the data represent 10 different plants during a particular month?
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