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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
80 128.5
90 137
100 150
To create the graphs in excel, should the regression analysis tool under the Data analysis tab? How is the Trend line added to the graph?
1. Fit three possible statistical cost functions to the data. Use straight-line, quadratic, and cubic formulas.
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Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
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