Question
7. (15 points) Suppose an economist is researching the factors that determine the number of internet service providers that choose to provide service to certain
7. (15 points) Suppose an economist is researching the factors that determine the number of internet service providers that choose to provide service to certain areas of the country. They assume that = (, , ) Where is the number of internet providers in the area, is a measure of how mountainous the area is, is the population density of the area, and is the average age of individuals in the area. a. What does the general form = (, , ) mean in words? b. Identify which variables are dependent variables and which are independent variables. c. Make up a specific form for this function. Use your knowledge of economics to deduce whether the coefficients of the different independent variables will be positive or negative. (Make an educated guess if you are unsure.)
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