ECON 3551 Economics Demand/Cost Estimation and Recommendation Project
Question # 00525306
Posted By:
Updated on: 05/10/2017 02:37 AM Due on: 05/10/2017
Part 1: Demand Estimation
Estimate a demand equation with a linear regression.
Use quantity as the dependent variable and price as the only explanatory variable.
Enter your full demand equation.
Part 2: First Price Recommendation
Due Tuesday, May 9
Use a regression to estimate total costs as a function of quantity. Use the same data file as in part 1.
Use the cost estimates and the demand estimation from part 1 to find marginal cost and marginal revenue.
Find the profit-maximizing quantity and price. Use the profit-maximizing price as your price recommendation.
Submit your answer and your supporting calculations.
-
Rating:
/5
Solution: ECON 3551 Economics Demand/Cost Estimation and Recommendation Project