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Unformatted text preview: ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. This plot “looks” linear which loosely speaking validates our assumption of constant returns. Using Excel, we regress
on without an intercept by choosing the “constant is zero” box in the regression window (see example below): Here is the regression output with
Summary as the dependent variable and
R-Square StErr of
Estimate 0.9933 0.9933 15.00262977 Degrees of Explained R-Square 0.9967 ANOVA Table R Adjusted as the independent variable: Sum of Mean of Freedom Squares Squares 1 12196031.16 12196031.16 F-Ratio p-Value 54185.5818 < 0.0001
19 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. 363 Unexplained 81703.64072
< 0.0001 Confidence Interval 95% p-Value Error 0
0.018427519 Lower NA
5.88216E-05 Upper NA
0.018543193 The total variable cost function for the diet variety of brand X is: Where: 4. Examples of Firms with Market Power
In this chapter we will and model a general firm...
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This document was uploaded on 01/19/2014.
- Fall '14
- The Land