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?