Answer to Question #67187 in Other Economics for Mohamed alxadari
A firm estimates its cubic production function of the following form
Q = AL3 + BL2
and obtains the following estimation results
DEPENDENT VAR: Q F-RATIO: 42.175
OBSERVATIONS 62 R-SQUARE: 0.7631
VARIABLE PARAMETER STANDARD
ESTIMATE ERROR T-RATIO
L3 -0.05 0.013 3.83
L2 0.60 0.25 2.40
The firm pays RM36 per unit for labour services.
The estimated total, average, and marginal product functions are:
Q = ___________________________________________________
AP = __________________________________________________
MP = _________________________________________________
Are the parameters of the correct sign and are they significant?
Average product reaches its maximum value at________ units of labour?
Average product reaches its minimum value at _________units of abour?
At the output level for part d,
AVC = RM____________
SMC = RM____________
When labour usage id 7 units,
AVC = RM___________
SMC = RM___________