Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On the Excel file exam2_Q10 , you will find a data file that contains data on output (Q), labor (L), and capital (K) of Bobcats
- On the Excel file "exam2_Q10", you will find a data file that contains data on output (Q), labor (L), and capital (K) of Bobcats electric company. Please save and submit the workbook to the CANVAS.
- What has been the average annual compound growth rate for the Bobcats electric company?
- Based on the data, what is the estimated Cobb-Douglas production function for the company? Is the company an increasing return to scale? Why or why not.
- Using the estimated Cobb-Douglas production function, and given the cost of labor as $25,000 per year and capital as $5,000 per unit, what is the expansion path (optimal mix of labor and capital)?
*** need assistance to determine Optimal L/K
Labor 25000 Capital 5000 year Q L K Optimal L Optimal K InQ InL Ink 2004 2 85 0 0.693147 4.442651 SUMMARY OUTPUT 2005 20 0 1.098612 2.995732 2006 160 0.693147181 1.609438 5.075174 Regression Statistics 2007 250 1.098612289 1.94591 5.521461 Multiple R 0.98287068 2008 16 100 1.098612289 2.772589 4.60517 R Square 0.96603477 2009 7 15 1.098612289 1.94591 4.744932 Adjusted R Square 0.96178911 2010 9 290 1.386294361 2.197225 5.669881 Standard Error 0.15233639 2011 9 235 1.386294361 2.197225 5.459586 Observations 19 2012 10 320 1.609437912 2.302585 5.768321 2013 11 365 1.609437912 2.397895 5.899897 ANOVA 2014 6 12 250 1.791759469 2.484907 5.521461 df SS MS F gnificance F 2015 7 15 480 1.945910149 2.70805 6.173786 Regression 2 10.56052464 5.280262 227.535 1.77E-12 2016 13 47 1.945910149 2.564949 6.152733 Residual 16 0.371302029 0.023206 2017 8 17 530 2.079441542 2.833213 6.272877 Total 18 10.93182667 2018 9 17 425 2. 197224577 2.833213 6.052089 2019 10 21 555 2.302585093 3.044522 6.318968 Coefficients Standard Error t Stat P-value Lower 95%Upper 95%ower 95.09 pper 95.0% 2020 10 21 515 2.302585093 3.044522 6.244167 Intercept 2.0329903 0.253998412 -8.00395 5.51E-07 -2.57144 -1.49454 -2.57144 -1.49454 2021 14 29 665 2.63905733 3.367296 6.499787 InL 0.69283989 0.085101416 8.141344 4.42E-07 0.512433 0.873247 0.512433 0.873247 2022 15 31 600 2.708050201 3.433987 6.39693 Ink 0.34978543 0.069229715 5.052533 0.000118 0.203025 0.496546 0.203025 0.496546 2023 18 37 1000 2.890371758 3.610918 6.907755Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started