1.You collect the following production data for your firm:

Q L

218 2

1,361 6

419 3

58 1

1,574 9

906 5

1,505 7

796 4

1,500 11

1,820 10

a.Which functional form (linear, quadratic, cubic) is most suitable to your data? Construct a scatter diagram but be sure to just do the dots; don't include the lines that connect them. Then, play around with the trendline feature and include what you consider to be the best trendline.

b.Using OLS, estimate the firm's short-run production function. Comment on the strength of the regression results.

c.Calculate the Q, AP, and MP for L = 8 workers.

d.At 8 workers, is MC rising or falling, and how do you know?