reciprocal services Return to problem 13, Chapter 8 where eost was aggregated into eategory A

(TCJ, eategory B (TC;), and assembly (TeA). Further suppose we know, for output q, that the reeiprocal relationship is given by A = q + B/4 and B = X + NI0.

a] Suppose Ralph knows only this strueture and the data set from 15 recent periods listed on the following page. What is Ralph' s best estimate (in a statistieal sense) of the marginai eost of output?

b] What happens to your answer in [a] above if you admit that the physieal relationships among units of A, B, and q in the above two equations should also have error terms attached?

t q TCA TCA TCB 1 2,621 304,339 52,857 134,299 2 2,770 331,979 66,358 132,751 3 2,614 311,771 59,415 139,778 4 1,756 232,231 37,820 90,595 5 2,327 286,545 48,138 119,170 6 1,606 204,749 59,360 68,659 7 1,762 232,087 43,396 88,734 8 1,232 179,371 30,648 75,338 9 2,695 306,645 73,855 152,051 10 2,439 295,026 62,632 113,754 11 2,554 296,982 57,841 135,604 12 2,007 249,453 56,190 110,152 13 1,886 238,449 51,135 109,894 14 1,813 239,089 49,366 94,832 15 1,961 242,504 41,220 101,240.AppendixLO1