The following function was estimated for the bus industry: Q 1:80 2:4 0:21B 2:0

The following function was estimated for the bus industry:

Q ¼
1:80

ð
2:4Þ

þ 0:21B

ð2:0Þ

þ 0:41F

ð3:3Þ

þ 0:37L

ð3:2Þ

adjusted R2 ¼ 0:97 Explain the role and function of the exponents in the multiplicative production function. Does the estimated production function indicate that there are economies of scale?