Cubic Production Function
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In Microsoft Excel please respond to all questions and math problems in the following problem (See Attachment). Please show Microsoft Excel formula(s) and work.
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Homework Exercise Numbers 1
1. A firm estimates its cubic production function of the following form: Q = AL3 + BL2 and obtains the following results:
[see attachment for table]
a. The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
b. The estimated values of A and B are statistically significant at the (exact) levels, ________ and _________, respectively.
c. At _______ units of labor usage, marginal product of labor begins to diminish.
When the wage rate is $300, answer the following questions. (Remember that AP =
Q/L; AVC = w/AP; and SMC = w/MP.)
d. Average product of labor reaches its maximum value at ________ units of labor.
e. At the output for part d, average variable cost is $______________ and marginal cost is $____________.
f. When the rate of labor usage is 100 units of labor, output is _______ units.
Average variable cost is $_________ and marginal cost is $__________.
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Homework Exercise Numbers 1
1. A firm estimates its cubic production function of the following form: Q = AL^3 + BL^2 and obtains the following results:
DEPENDENT VARIABLE Q R?SQUARE F?RATIO P?VALUE ON F
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