Final Exam ECO321 Summer 2016 c) Write down the null hypothesis corresponding to the statement that the effect of labor prices is equal to the effect of fuel prices. Test this hypothesis using an appropriate restricted regression. d) The returns to scale of the associated production function is 1/By. Estimate the Cobb- Douglas cost function. Test the appropriate hypothesis to determine whether this production function displays increasing, decreasing or constant returns to scale. Note that increasing, decreasing and constant returns to scale are associated with 1/By > 1, 1/By