Running Head: MANAGERIAL ECONOMICS 1MANAGERIAL ECONOMICSAUTHORS NAMEUNIVERSITY OF AFFILIATION
MANAGERIAL ECONOMICS 2
MANAGERIAL ECONOMICS 3Plot a scatter diagram of TVC on the vertical axis and Q on the horizontal axis. Does the scatter diagram suggest a functional form for TVC? Explain briefly020040060080010001200140016001800010000200003000040000500006000070000f(x) = 41.12 x − 4312.18R² = 0.98TVC vs QLinear (TVC vs Q)Linear (TVC vs Q)QUANTITYTVCThe scatter diagram represents the relationship between independent and dependent variable. Theindependent variable is the quantity produced monthly while the dependent variable is the total variable cost. The relationship between the two variables is a positive relationship since the y-axis tends to increase as the x-axis increase. The correlation between the quantity produced per month and the total variable cost is very strong. These are because upon drawing line of best fit; half the points are below the line while another half above the line. From the diagram, an increase in quantity produced monthly cause an increase in Total variable cost.The functional form y=41.122x-4312.2Plot a scatter diagram of AVC on the vertical axis and Q on the horizontal axis. Does the scatter diagram suggest a functional form for AVC? Explain briefly
MANAGERIAL ECONOMICS 4020040060080010001200140016001800051015202530354045f(x) = 0.01 x + 28.4R² = 0.67AVC vs QLinear (AVC vs Q)Linear (AVC vs Q)QUANTITYAVCThe scatter diagram represents the relationship between independent and dependent variable. Theindependent variable is the quantity produced monthly while the dependent variable is the average variable cost. The relationship between the two variables is a positive relationship since the y-axis tends to increase as the x-axis increase. The correlation between the quantity producedper month and the total variable cost is very strong. These are because upon drawing line of best fit; half the points are below the line while another half above the line. From the diagram, an increase in quantity produced monthly cause an increase in average variable cost.Functional formY=0.007x+28.398Estimate a quadratic AVC function. Present the estimated equation and evaluate the regression results (i.e., discuss the algebraic signs of the parameter estimates, the significance levels, and the R2).Quadratic AVC functionX=400)(x=600)
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