please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly Production Function for Good XL⭑K୧LaborCapitalOutputMPK = (AQ/AK)Marginal Product ofCapitalAPK = (Q/K)Average Product ofCapital900910575.75.7092032426.716.2093065733.3B9401,07241.526.809501,52445.230.489601,97645.232.939702,39141.534.169802,72433.334.059902,991A33.2391003,0485.730.4891103,016-3.227.4291202,945-7.124.54O a. long run, since K is the fixed input.O b. long run, since K is the variable input.O c. short run, since L is the variable input.O d. short run, since L is the fixed input.

Option a) long run, since K is the fixed input: This option is incorrect because it suggests a…

Answered: Production Function for Good X L⭑ K ୧…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total Fixed Total Variable Labor Output (workers) (units per day) (dollars) Cost Cost (dollars) 20 20 20 20 20 20 25 50 75 100 125 2 19 13 4. 16 1S
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Question 6 The estimation of a Cobb-Douglas production function for 20 firms of a given industry yields: = a. 16.907 + 0.322k; + 2.777lį R² = 0.915 DW = 2.032 RSS = 0.461 Use a = 5% Var ß = 0.166070 0.031857 0.216639 -0.857446 -0.057229 4.939971/ where : fitted values of naturals logaritrhms of output (output express in 1000 tons); ki: natural logaritrhms of capital output (output express in 1000 tons) li: natural logaritrhms of labour (labour is in hours) RSS: residual sum of squares 1: firm index Var ß: variance covariance matrix of estimates Evaluate the statistical significance of the coefficients. Page 4 of 12 b. A regression on the original regressors, q² and a constant term yields the following statistics: R² = 0.296041 F = 1.177507 coeff of ² has a t-statistic of 2.876 (i) With this information, which test can you implement to deal with the problem omitted variables and why? (ii) Implement the test as stated in b(i) and interpret the results. (iii) What is (are) the…
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nestion # 1: (20) (a) Suppose a Firm produce output using the production function Q=5KL. Wage rate for hiring labor 200 an hour and cost of using capital is 100 per hour. (i) Find out the optimal quantities of labor (L') & capital (K’) to produce 1000 unit of output?. (ii) Also show the result graphically and interpret. (b) Explain the concept of Isoquant and Isocost line in firm theory. Mathematically derive the slope of isocost line and Isoquant and interpret.
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