Question

Q6: CH 10 (15%) You are planning to estimate a short-run production function for your firm, and you have collected the following data on labor usage (L) and output (Q): Labor usage (L) Output (0)

Answer 1

Given @ The Production funcion = -0.001352^3+0.062451*22 since the p-value for both L3 and L^2 is less than 0:05, the coefficient values are significant at 5 percent level. 50NMURy ouTPoT Regression Statistics Multiple p 0.9932 R squre 0.9864 Adjustume 0.8943 standere vor 1.8356 observa kog 13.0000 ANOVA df ss MS I f significa Regression 2.00 2689.93 1344.94 399.150.00 Residual 11.00 137.07 3.37 Total 27a7.00 coefficí standa Lower ents -od t stat p-value 954 Error -nce F upper 951 ^3 -0.00135 0.00018 -7.61253 0.00001 0.00175 -0.00096 La 0.06245 0.00538 11.61535 0.00000 0.05062 001428

Labor usage (1) output (@) AP MP L^3 17 3434 0.33 629 0.33 २१ 6.25 0.50 1.00 0.50 1331 sho 284 . th:o 11 -9935 0 0 09- a 289 484 576 1413 4913 10648 13824 11576 2152 27000 35937 39304 919 0.59 0.68 0.15 0.85 6.15 0.67 0.58. 0.50 Hist Oob 0.00 1.00 150 2.00 -0.50 -0.50 --0.33 | -0.00 30 33 1089 1156

2.501 2.00! MD=-0.048x+1302 AP=0.06x +0.306 0001 o 5 10 15 20 25 30 35 Yo out put 3-1.00 -1.50 -2.00 -2.50 Labour Apat do workers = 0.01220+0-306= 0.546. Mp at 20 workers 2-0.04820 +1:322 -0.362