Economics Demand/Cost Estimation and Recommendation Project
Help with Economics Demand/Cost Estimation and Recommendation Project
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The instructions for the project are below (the data set is attached). I figured out the first part, estimating the demand equation (Q = 1,272,219 - 26,000P). I also kind of figured out the second part, estimating total cost as a function of quantity (TC = 2,829,177 + 10.84Q). I'm not sure if it's correct. I'm just stuck on figuring out the marginal cost, marginal revenue, and the profit-maximizing price and quantity.
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I need this by 11pm tonight if possible - I can pay $29 through Tutor Credits and will tip an additional $30+ for a complete solution. Any help would be greatly appreciated!
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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.
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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.
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Answers
Status NEW
Posted 17 May 2017 05:05 AM
My Price 15.00
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file 1495001231-Solutions file.docx preview (56 words )
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