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Rs 100 of the average total cost is made up of variable costs.
Step-by-step explanation:
Given:
Number of output the firm produces= 7 units
Average cost of the output= Rs. 150
fixed factors of production = Rs.350
To Find:
How much of the average total cost is made up of variable costs=?
Solution:
we know that,
Average total cost= total cost/ number of output units produced
substituting the values, we get
Total cost= 1050
we know that Total fixed cost = 350
Total cost = Total fixed cost + Total variable cost
plug in the known values.
1050= 350 + Total variable cost
Total variable cost = 1050-350
Total variable cost =700
For 7th unit = 100
I will attach google sheet that I used to find regression equation.
We can see that linear fit does work, but the polynomial fit is much better.
We can see that R squared for polynomial fit is higher than R squared for the linear fit. This tells us that polynomials fit approximates our dataset better.
This is the polynomial fit equation:
I used h to denote hours. Our prediction of temperature for the sixth hour would be:
Here is a link to the spreadsheet (<span>https://docs.google.com/spreadsheets/d/17awPz5U8Kr-ZnAAtastV-bnvoKG5zZyL3rRFC9JqVjM/edit?usp=sharing)</span>
We can see that linear fit does work, but the polynomial fit is much better.
We can see that R squared for polynomial fit is higher than R squared for the linear fit. This tells us that polynomials fit approximates our dataset better.
This is the polynomial fit equation:
I used h to denote hours. Our prediction of temperature for the sixth hour would be:
Here is a link to the spreadsheet (<span>https://docs.google.com/spreadsheets/d/17awPz5U8Kr-ZnAAtastV-bnvoKG5zZyL3rRFC9JqVjM/edit?usp=sharing)</span>