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no because MC dosent start at 0 units..it starts betwenn 0 and 1 unit and there it is the cost of increasing production from 0 to 1. fixed costs do not affect MC at all.. fixed costs are there regardless of how much a company produces, 0 or infinity fixed costs are the same.

no because MC dosent start at 0 units..it starts betwenn 0 and 1 unit and there it is the cost of increasing production from 0 to 1. fixed costs do not affect MC at all.. fixed costs are there regardless of how much a company produces, 0 or infinity fixed costs are the same.

Not if MC = MFC + MVC

but it does not... unless u constantly count MFC as 0..

Er...what? Why does it have to be 0? Yes, the MFC will fall as output increases, but it still exists.

you are thinking of AFC..

http://upload.wikimedia.org/wikipedia/en/thumb/e/ec/Marginalcost.gif/400px-Marginalcost.gif

type marginal cost curve into google and look up a definition of marginal cost

right yes you have a point. i still dont accept that ac moves without mc moving because the mc is derived from the ac

Please help with this problem.

A security analyst specializing in the stocks of the motion picture industry the relation between the number of movie theater tickets sold in December and the annual level of earnings in the motion picture industry. Time-series data for the last 15 years are used to estimate the regression model. E = a + bN where E is total earnings of the motion picture industry measured in dollars per year and N is the number of tickets sold in December. The regression output is as follows:



DEPENDENT VARIABLE: E R-SQUARE F-RATIO P-VALUE ON F
OBSERVATIONS: 15 0.8311 63.96 0.0001

VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE
INTERCEPT 25042000.00 20131000.00 1.24 0.2369
N 32.31 8.54 3.78 0.0023




How well do movie ticket sales in December explain the level of earnings for the entire year? Present statistical evidence to support your answer. Also, sales of movie tickets in December are expected to be approximately 950,000. According to this regression analysis, what do you expect earnings for the year to be? Prior to this analysis, the estimates for earnings in December are $48 million. Is this evidence strong enough for you to consider a improving the current recommendation for the motion picture industry?

the data presented is a little confusing in its current form. perhaps you could attach an excel spreadsheet to make it clearer? but from what I can make out, the Rsquared value is quite high (0.8311). so on the face of it, the answer to the first question is 'very well', but to be sure you have to show that the alpha and beta estimates are significant. I can't tell which numbers are the alpha and beta estimates and their corresponding standard errors, sorry.
but in general if you divide the estimate for alpha by the corresponding standard error, then as a general rule of thumb the resulting t-value should be 2 or more for it to be significant. same for beta.

Here you go. Hopefully this will help. I guess I'm not understanding what I am actually looking at.

Thanks for the help.