I have been given a range of data and questions to answer and was hoping that you could assist in explaining a means to find the solution.

Here is the first line of data range: Output 790 Labor-Skill: 3000 Labor Admin: 2100 Raw materials: 400 Energy: 2500

1. Estimate the output of Elasticities of the inputs; Do you believe these Estimates and why?
2. What is the returns to scale in this industry?
3. What might be the shape of the Long-Run Average cost curve? When output is expected to grow 10% per year for the next three years?

You may want to use the average values of the independent variables as a starting point.

assuming one can buy as much skilled labor as possible at 40 dollars per hour and Admin- labor at 25 dollar per hour.

Also Prices of Raw material is 20 dollars per board feet of material, and 200 dollars per unit of Energy.

Assume the Industry has an Average Fixed cost of $290,000

Production and Cost data; US Furniture Industry: Cross-section of 33 firms: Output LAB-SKIL LAB-admn Raw Energy 790 3000 2100 400 2500 650 2800 1875 375 2100 120 540 198 115 1400 70 125 80 110 1020 400 2650 1200 320 1600 1020 4500 2030 600 2650 230 980 1000 540 2000 505 1842 1900 506 1765 667 2763 2565 496 1942 663 2925 1320 390 1723 228 980 656 131 735 110 600 430 105 800 2244 9900 4466 1320 5830 415 1789 1198 240 1341 209 1140 817 200 1520 92 367 280 210 1090 41 165 126 95 491 404 1474 1520 405 1412 270 1215 446 259 3150 267 1064 812 609 3161 252 1049 797 594 3146 1346 5940 2680 792 3498 486 2187 802 466 3670 465 2166 781 445 4400 93 180 79 220 1870 33 175 35 155 900 869 3300 2310 440 2750 808 3069 2148 409 2558 50 263 53 233 1350 403 1679 1275 950 5034 161 642 490 368 1908 489 1783 1839 490 1709 541 1890 2001 489 1780 870 2010 1980 560 1850 970 2100 1976 604 2000