labor usage -3,7,9,11,17,17,20,24,26,28,30
output-1,2,3,5,8,10,15,18,22,21,23
a. does a cubic equation appear to be a suitable specification, given these data? You may construct a scatter diagram to help with this question.
b. using the computer software for regression analysis, estimate your firm's short-run production function using thr data given here. Do the parameter estimates have the appropriate algebraic sighns? Are they statistically significant at the 5 percent level?
c. At what point do you estimate marginal product begins to fall?
D. calculate estimates of total, average, and marignal products when the firm employs 23 workers.
e.whenthe firm employs 23 workers, is short-run marginal cost (SMC) rising or falling? How can you tell.
1 answer