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# Post Your Economics Question Here watch

1. The two aren't the same, so I doubt it
2. (Original post by biggie-n)
They both move down together as technology improves. The AC or MC will never move independently of the other.

nope. if Fixed Costs fall rather then variable costs AC will fall and MC will not move. in that case AC will move diagnally so that MC still cuts it at its lowest point
3. (Original post by Pabs666)
nope. if Fixed Costs fall rather then variable costs AC will fall and MC will not move. in that case AC will move diagnally so that MC still cuts it at its lowest point
could you show that in a diagram? not 100% sure what you're getting at.
4. (Original post by Pabs666)
nope. if Fixed Costs fall rather then variable costs AC will fall and MC will not move. in that case AC will move diagnally so that MC still cuts it at its lowest point
Given that MC and AC have the same origin, they can't move independently. If fixed costs fall, so does the marginal (the cost of 0 units is lower, so MC starts lower down)
5. (Original post by Apagg)
Given that MC and AC have the same origin, they can't move independently. If fixed costs fall, so does the marginal (the cost of 0 units is lower, so MC starts lower down)
Yes, that's what I was thinking...
6. 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.
7. (Original post by Pabs666)
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
8. (Original post by Pabs666)
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.
Yes it does - the marginal cost of the 0th unit is the fixed cost. You can argue this one out with my economics lecturers if you like, but I doubt you'll win
9. (Original post by biggie-n)
Not if MC = MFC + MVC
but it does not... unless u constantly count MFC as 0..

and to the other person, there is no MC at qty 0.look at it the diagram in your text book or something if you have to. you have probably misunderstood your lecturer rather then them being incorrect.
10. So where does the MC curve start?
If the definition of the MC is the cost of producing that unit, and you have cost of FC when producing 0, the MC at 0 is FC.
11. (Original post by Pabs666)
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.
12. (Original post by biggie-n)
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..

type marginal cost curve into google and look up a definition of marginal cost
13. (Original post by Pabs666)
you are thinking of AFC..

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
14. (Original post by biggie-n)
right yes you have a point. i still dont accept that ac moves without mc moving because the mc is derived from the ac
no the mc is not derived from the ac. they are related (mc goes through ac at its lowest point) but you do not get the mc from the ac curve.
15. Hey, I changed my EE topic again....but I don't know which aspect I can touch on for this one which is about beer consumption. I wish to discuss microeconomics cuz it's my favorite part. Any ideas?

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?
17. (Original post by robertwstewart)

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.
18. (Original post by biggie-n)
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.
Hehe, screwed that one up in the maths exam - got it the other way round (2+ is insignificant) and spent 30 mins trying to work out what I'd got wrong before giving up
19. hmm, did you respond and then delete it? It says you quoted me for some reason
20. yeah i did

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