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The average cost of a gallon of unleaded gasoline in Greater Cincinnati was reported to be $2.41 (The Cincinnati Enquirer, February 3, 2006). During periods of rapidly changing prices, the newspaper samples service stations and prepares reports on gasoline prices frequently. Assume the standard de-viation is $.15 for the price of a gallon of unleaded regular gasoline, and recommend the appropriatesample size for the newspaper to use if they wish to report a margin of error at 95% condence.
a. Suppose the desired margin of error is $.07.b. Suppose the desired margin of error is $.05.c. Suppose the desired margin of error is $.03.
Derive the profit function P (p) and the supply function (or correspondence) y (p)for the following three Single-output technologies, whose production functions f (z) are:
What are cost drivers?
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#question.d.
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Least square method
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