Explore BrainMass

Explore BrainMass

    Test regression result of Cobb-Douglas production formula for a firm

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    After a logarithmic transformation, we obtain the following regression result of Cobb-Douglas production formula for a firm:

    This symbol goes on top: ^ on top of the Ln Qi.

    Ln Qi = 2.294 +0.3451 Ln Ki + 0.7534 Ln Li

    a) Estimate the level of output if firm uses 140 units of capital and 230 units of labor.
    b) Write the function in its original form by determining A, alpha(a) and beta(B).
    c) Is this company operates under constant return to scale?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:01 pm ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/test-regression-result-cobb-douglas-production-formula-138546

    Solution Summary

    The solution provides full formalas and caculations to arrive at solutions to each problem.

    $2.49

    ADVERTISEMENT