Please help me answer the attached questions. Thanking you The Cobb- Douglas production function is given by the form Y = ALAKBWhere, Y = Output (mt/day), L = Labour (hours/mt) K = Capita (Rs/mt). By taking the natural logarithmof each term in the function, that is LnY = LnA+«LNL+BLNK. Using a standard multiple linear regressionmodel the parameters of the function were obtained as follows;Ln Y = 1.389 +0.8LnL + 0.6LnK(0.53) (0.02)(0.04)The standard error for each estimated parameter is shown in parentheses below the estimate.а)b)Construct the Cob- Douglas production functionMeasure marginal product of labour and marginal product of capital when L=10 and K=5Determine factor intensity and returns to scale of this production function.Calculate elasticity of labour and elasticity capital and interpret the results.Is this production function exhibit the law of diminishing returns in the short run?Construct the equation for isoquant.Distinguish between Cobb Douglas production function and Classical production function

Given Ln Y = 1.389+0.8LnL +0.6LnK ......... (1)

The Cobb- Douglas production function is given by the form Y = ALaKß Where, Y = Output (mt/day), L = Labour (hours/mt) K= Capita (Rs/mt). By taking the natural logarithm of each term in the function, that is LnY = LnA+«LNL+BL1K. Using a standard multiple linear regression model the parameters of the function were obtained as follows; Ln Y = 1.389 +0.8LNL + +0.6LnK (0.53) (0.02) (0.04) The standard error for each estimated parameter is shown in parentheses below the estimate. а) b) с) Construct the Cob- Douglas production function Measure marginal product of labour and marginal product of capital when L=10 and K=5 Determine factor intensity and returns to scale of this production function.

The Cobb- Douglas production function is given by the form Y = ALaKß Where, Y = Output (mt/day), L = Labour (hours/mt) K= Capita (Rs/mt). By taking the natural logarithm of each term in the function, that is LnY = LnA+«LNL+BL1K. Using a standard multiple linear regression model the parameters of the function were obtained as follows; Ln Y = 1.389 +0.8LNL + +0.6LnK (0.53) (0.02) (0.04) The standard error for each estimated parameter is shown in parentheses below the estimate. а) b) с) Construct the Cob- Douglas production function Measure marginal product of labour and marginal product of capital when L=10 and K=5 Determine factor intensity and returns to scale of this production function.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 2E

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