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  3. 3 estimate supply a suppose you are given this information...

Question: 3 estimate supply a suppose you are given this information...

Question details

3. Estimate Supply

a. Suppose you are given this information from a movie theater making rational, optimized decisions. Sketch a graph of supply (total cost and quantity) for “theater movies” using the available data.

Price of Price of Number Theater Theater Output Workers Film per Worker Quantity (Movies per Hour 1000 ft. Hours of Film Produced Labor Capita Used 15 18 13 20 Used 100 120 80 95 1.0 1.5 3.0 5.0 0.2 0.3 0.6 1.5 8

b. Estimate the quadratic cost function for “theater movies” that best approximates the data and add it to your graph

c. What are the average and marginal cost equations based on your estimate? Is there a non-zero quantity that minimizes these unit cost measures?

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