Question: You are asked to estimate the average variable cost (AVC) function for the firm. Based upon the estimated AVC, you can obtain the predicted values

You are asked to estimate the average variable cost (AVC) function for the firm. Based upon the estimated AVC, you can obtain the predicted values of AVC and SMC.Currently, the market price is given at $50. You have already paid the total fixed cost (TFC) of $2,000.

QuarterOutputDeflated AVC ($)

2012-II30036.26

2012-III10037.33

2012-IV15027.10

2013-I25026.89

2013-II40045.10

2013-III20031.34

2013-IV35042.24

2014-I45055.13

2014-II50061.73

(a)Using the data above, estimate the coefficients of AVC,a, b, andc, in MS Excel, and . I was able to figure this out in excel but I am not sure what would be considered my x axis and y axis to get the correct information

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