Question
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;
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?
Q | L |
186 | 2 |
1,026 | 6 |
441 | 3 |
65 | 1 |
1,594 | 9 |
990 | 5 |
1,559 | 7 |
719 | 4 |
1,162 | 11 |
1,515 | 10 |
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