Answer the following questions using the information below:
The Delmonico Company uses the high-low method to estimate the cost function. The information for 2011 is provided below:
-What is the constant for the estimating cost equation?
Definitions:
Market Wage Rate
The prevailing rate of pay for a specific job or occupation in a labor market, influenced by supply and demand for labor.
Diminishing Returns
A principle stating that as investment in a single area of production increases, the rate of return from that investment, after a certain point, begins to decrease.
Worker
A person engaged in work, especially in manual or industrial labor, often for wages.
Profit Maximizing
Profit maximizing is the process by which a firm determines the price and output level that returns the greatest profit.
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