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. Fernandez e. Beyond what level of labor employment does the law of diminishing returns set in? Beyond what level of output? DEP. VARIABLE: R-SQUARE F-RATIO P-VALUE ON F OBS: 22 0.6198 83.72 0.0000 PARAMETER STD. VARIABLE ESTIMATE ERROR T-RATIO P-VALUE 13 -0.04249 0.01491 -2.85 0.0099 1.2 2.77199 0.55584 4.99 0.000130. Mercantile Metalworks, Inc. manufactures wire carts for grocery stores. The production manager at Mercantile wishes to estimate an empirical production function for the assembly of carts using the following time-series data for the last 22 days of assembly operations. L is the daily number of assembly workers employed, and Q is the number of carts assembled (completely) for that day. Mercantile pays its assembly workers $160 per day in wages and benefits. Number of Number of Number of carts Number of carts workers Day assembled Workers assembled L Day L Q 15 75 12 40 2,165 21 897 13 21 1,534 24 1,280 14 27 835 32 1,251 15 20 906 36 1,315 16 15 102 38 2,837 17 36 1,424 18 590 18 14 111 18 129 19 24 868 41 1,572 20 25 916 36 2,005 21 32 1,341 11 44 1,024 22 21 806 a. Use a computer regression package or Excel to estimate the following short-run cubic production function: 9 - AL' + BL' Do the parameter estimates have the appropriate algebraic signs? Are they statistically significant at the 1 percent level of statistical significance? How well did the empirical model do in explaining the variation in the number of carts assembled each day? b. What are the estimated total, average, and marginal product functions from your regression results in Part 1? c. At what level of labor usage does average product reach its maximum value? In a day, how many carts per worker are assembled when average product is maximized? What is average variable cost when average product is maximized? d. What is short-run marginal cost when average product is maximized