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Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice
Edition 12ISBN: 978-0078021909Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice
Edition 12ISBN: 978-0078021909 Exercise 1
You are planning to estimate a short-run production function for your firm, and you have collected the following data on labor usage and output:
a. Does a cubic equation appear to be a suitable specification, given these data? You may wish to construct a scatter diagram to help you answer this question.
b. Using a computer and software for regression analysis, estimate your firm's shortrun production function using the data given here. Do the parameter estimates have the appropriate algebraic signs? 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 marginal products when the firm employs 23 workers.
e. When the firm employs 23 workers, is short-run marginal cost ( SMC ) rising or falling? How can you tell?
a. Does a cubic equation appear to be a suitable specification, given these data? You may wish to construct a scatter diagram to help you answer this question.
b. Using a computer and software for regression analysis, estimate your firm's shortrun production function using the data given here. Do the parameter estimates have the appropriate algebraic signs? 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 marginal products when the firm employs 23 workers.
e. When the firm employs 23 workers, is short-run marginal cost ( SMC ) rising or falling? How can you tell?
Explanation
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Short run production functions shows the...
Managerial Economics 12th Edition by Christopher Thomas,Charles Maurice
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