Question
Q a. Which functional form (linear, quadratic, cubic) is most suitable to your data? Construct a scatter diagram but be sure to just do the
Q
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?
L
242
2
923
6
453
3
62
1
978
9
1,000
5
974
7
540
4
230
11
708
10
Q |
L | ||
242 | 2 | ||
923 | 6 | ||
453 | 3 | ||
62 | 1 | ||
978 | 9 | ||
1,000 | 5 | ||
974 | 7 | ||
540 | 4 | ||
230 | 11 | ||
708 | 10 |
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