Complete the following questions on cost function: 1. Write the cost function resulting from your regression results. Include specific coefficients. 2. Estimate the total, average, and marginal costs for a firm with a quantity sold of 60,000 units. 3. Is a firm operating at the point identified in question 2 operating at a profit-maximizing level of output? How do you know? If they are not, should they expand or reduce quantity sold to move closer to the profit maximization level? Explain your reasoning. 4. Estimate the average cost for a firm with a quantity sold of 70,000 units. Compare your answer with the answer to question #2 above. Does the manufacturer appear to have economies of scale? How do you know?  Please let me know if you can help, and make sure the calculations show on the spreadsheet. The spreadsheet must be organized as follows: · Tab 2: Original data · Tab 5: Output and answers to questions for cost function (Copy the data necessary to the top of this spreadsheet before running the regression.) Data  Total cost = sum of all costs of doing business Q sold = the quantity sold (in units) that quarter Q prod = the quantity produced (in units) that quarter Q dem = the quantity demanded (in units) that quarter Price = price per unit charged by the firm Labor = # labor hours used in production in that quarter. For purposes of this assignment, assume that all labor hours are identical. Capital Investment = the number of plants in operation that quarter. Assume for the sake of this project, that all plants are approximately equal in size and use of technology. Advertising Expenses = dollars spent on advertising that quarter Capital Consumer Advertising TC Qsold Qprod Qdem Price Labor Invest Income Expenses Qtr 1 $4,415,000 499,999 499,999 549,425 $9.25 50,000 5 $20,000 $150,000 Qtr 2 $5,186,644 587,236 587,236 714,993 $9.25 60,000 5 $20,600 $150,000 Qtr 3 $5,174,189 548,667 647,480 548,667 $9.75 70,000 5 $21,000 $125,000 Qtr 4 $7,282,201 766,297 667,484 833,521 $9.65 75,000 5 $21,200 $200,000 Qtr 5 $7,630,401 811,784 811,764 860,747 $9.90 85,000 6 $21,400 $200,000 Qtr 6 $6,971,144 697,396 828,822 697,396 $10.25 95,000 6 $22,000 $150,000 Qtr 7 $7,915,228 715,182 829,046 829,046 $11.50 100,000 6 $21,600 $325,000 Qtr 8 $6,901,834 764,199 769,903 769,903 $10.00 75,000 6 $21,600 $150,000 Qtr 9 $7,719,569 811,784 811,784 811,784 $10.05 85,000 6 $21,600 $225,000 Qtr 10 $4,011,162 425,280 656,281 656,281 $10.75 60,000 6 $21,200 $125,000 Qtr 11 $8,688,700 744,619 829,046 829,046 $11.76 100,000 6 $22,000 $400,000 Qtr 12 $8,780,822 673,009 1,106,471 1,103,171 $12.35 140,000 8 $22,000 $400,000 .

1. Complete the following questions on cost function:
1.
Write the cost function resulting from your regression results.
Include specific coefficients.
2.
Estimate the total, average, and marginal costs for a firm with a
quantity sold of 60,000 units.
3.
Is a firm operating at the point identified in question 2
operating at a profit-maximizing level of output? How do you
know? If they are not, should they expand or reduce quantity
sold to move closer to the profit maximization level? Explain
your reasoning.
4.
Estimate the average cost for a firm with a quantity sold of
70,000 units. Compare your answer with the answer to question
#2 above. Does the manufacturer appear to have economies of
scale? How do you know?
Please let me know if you can help, and make sure the
calculations show on the spreadsheet.
The spreadsheet must be organized as follows:
·
Tab 2: Original data
·
Tab 5: Output and answers to questions for cost function (Copy
the data necessary to the top of this spreadsheet before running

2. the regression.)
Data
Total cost = sum of all costs of doing business

3. Q sold = the quantity sold (in units) that quarter
Q prod = the quantity produced (in units) that quarter

4. Q dem = the quantity demanded (in units) that quarter
Price = price per unit charged by the firm

5. Labor = # labor hours used in production in that quarter. For
purposes of this assignment, assume that all labor hours are
identical.
Capital Investment = the number of plants in operation that
quarter. Assume for the sake of this project, that all plants are
approximately equal in size and use of technology.
Advertising Expenses = dollars spent on advertising that quarter

6. Capital
Consumer
Advertising
TC
Qsold
Qprod
Qdem
Price
Labor

7. Invest
Income
Expenses
Qtr 1
$4,415,000
499,999
499,999
549,425
$9.25
50,000
5
$20,000
$150,000
Qtr 2
$5,186,644
587,236
587,236
714,993
$9.25
60,000
5
$20,600
$150,000

8. Qtr 3
$5,174,189
548,667
647,480
548,667
$9.75
70,000
5
$21,000
$125,000
Qtr 4
$7,282,201
766,297
667,484
833,521
$9.65
75,000
5
$21,200
$200,000
Qtr 5
$7,630,401
811,784
811,764

9. 860,747
$9.90
85,000
6
$21,400
$200,000
Qtr 6
$6,971,144
697,396
828,822
697,396
$10.25
95,000
6
$22,000
$150,000
Qtr 7
$7,915,228
715,182
829,046
829,046
$11.50
100,000
6
$21,600
$325,000

10. Qtr 8
$6,901,834
764,199
769,903
769,903
$10.00
75,000
6
$21,600
$150,000
Qtr 9
$7,719,569
811,784
811,784
811,784
$10.05
85,000
6
$21,600
$225,000
Qtr 10

11. $4,011,162
425,280
656,281
656,281
$10.75
60,000
6
$21,200
$125,000
Qtr 11
$8,688,700
744,619
829,046
829,046
$11.76
100,000
6
$22,000
$400,000
Qtr 12
$8,780,822
673,009
1,106,471
1,103,171
$12.35
140,000

12. 8
$22,000
$400,000