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. You collect the following production data for your firm: Q a. Which functional form (linear, quadratic, cubic) is most suitable to your data? Construct

. You collect the following production data for your firm:

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

196

2

1,155

6

443

3

62

1

1,114

9

712

5

1,045

7

631

4

903

11

1,232

10

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