You collect the following production data for your firm:

Q L

224 2

1,624 6

454 3

68 1

2,011 9

1,392 5

1,505 7

740 4

1,771 11

2,242 10

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 224

2

1,624

6

454

3

68

1

2,011

9

1,392

5

1,505

7

740

4

1,771

11

2,242

10