Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Question
Chapter 3, Problem 21P
(a):
To determine
Calculate the cost.
(a):
To determine
Calculate the new cost.
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Students have asked these similar questions
1. Exercise 9.1
A study of 86 savings and loan associations in six northwestern states yielded the following cost
function.
2.38
0.006153Q
0.000005359Q²
19.2X1
C
+
+
(2.62)
(2.84)
(3.16)
(3.50)
where C = average operating expense ratio, expressed as a percentage and defined as total
operating expense ($ million) divided by total assets ($ million) times 100 percent.
Q = output; measured by total assets ($ million)
X1 = ratio of the number of branches to total assets ($ million)
Note: The number in parentheses below each coefficient is its respective t-statistic.
Which of the variable(s) is (are) statistically significant in explaining variations in the average
operating expense ratio? (Hint: t0.025,7€ 1.99
.) Check all that apply.
X1
Q2
What type of average cost-output relationship is suggested by these statistical results?
Quadratic
Linear
Cubic
Based on these results, what can we conclude about the existence of economies or diseconomies
of scale in savings and loan associations in…
ATC, AAC, AVC, MC (/uni
270.00
24000
21000
180.00
150.00
120.00
10:00
60.00
30.00
0:00
02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34
Units of Output (0)
Unit Cost Curves
Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark
vertical line. The shaded rectangular area (height times width) is the
O average sunk cost.
O total sunk cost
O total avoidable fed cost.
O total avoidable cost.
O None of the above
Carlota Music Company estimates that the marginal cost of manufacturing its Professional Series guitars is
C ′ (x) = 0.02x + 100
dollars/month when the level of production is x guitars/month. The fixed costs incurred by Carlota are $4000/month. Find the total monthly cost incurred by Carlota in manufacturing x guitars/month.
Chapter 3 Solutions
Engineering Economy (17th Edition)
Ch. 3 - A green (environmentally friendly) office building...Ch. 3 - You are planning to build a new home with...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - The capital investment cost for a...Ch. 3 - The capacity of a switch grass-fueled ethanol...Ch. 3 - Prob. 16PCh. 3 - The time to assemble the first unit on a...Ch. 3 - Prob. 18PCh. 3 - For the data below (3.4 .3) a. Find the regression...Ch. 3 - A company that manufactures shuttle cars and mines...Ch. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 28SECh. 3 - Prob. 31CSCh. 3 - Prob. 32CSCh. 3 - Prob. 36FECh. 3 - Prob. 37FECh. 3 - Prob. 38FECh. 3 - Prob. 39FECh. 3 - Prob. 40FECh. 3 - Prob. 41FE
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