10. The transit corporation of Greater Adana Municipality has estimated the following Cobb- Douglas production function using monthly observations for the past two years. In Q=2.303 + 0.4lnK + 0.6lnL + 0.2lnG, (0.14) (0.16) (0.07) SSE=1805, SST=13581, D-W=2.20 Where Q is the number of bus miles driven, K is the number of buses the firm operates, L is number of bus drivers it employs each day, and G is the liters of diesel it uses. Numbers inside the parentheses are standard errors. a. (3) What is the economic meaning of the coefficients in the model? Prove your claim. b. (3) Interpret the estimated coefficients in an economic sense. c. (3) Do the signs of estimated coefficients agree with your expectations? Explain. d. (3) Estimate Q if K=200, L=400, G=4,000. e. (3) Rewrite the estimated production function in the form of a power function. f. (3) Find the marginal product of K, L, and G. g. (3) Find the average product of K, L, and G. h. (3) What is the exact relationship between the marginal and average products? Show it exactly. i. (3) Predict the marginal products at K=200, L=400, G=4,000. j. (3) Predict the average products at K=200, L=400, G=4,000. k. (3) Predict by how much does output increase if each input is increased by 10%. What is the economies of scale? 1. (3) Test the statistical significance of individual coefficients. m. (3) Is the elasticity of output with respect to capital equal to 0.5? Set up and carry out the appropriate hypothesis test. n. (3) Test the overall significance of the model. o. (3) Construct a 90% confidence interval for the coefficient of labor p. (3) Calculate R, R and interpret them. q. (15) How would you exactly test whether there is constant returns to scale using F test. Explain step by step. r. (15) How would you exactly test whether there is constant returns to scale using t test. Explain step by step.