Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. consider the following production function for bus

Consider the following production function for bus transportation in a particular city: Q= a Where Fuel input in...

70.2K

Verified Solution

Question

Statistics

  1. Consider the following production function for bustransportation in a particular city:

Q= a

Where Fuel input in gallons = F

Capital input in number of busses = K

Labor input in worker hours = L

Output in millions of bus miles = Q

We estimate the various parameters as follows using historicaldata:

                                    α=0.0012,β1=0.45, β2=0.2, β3=0.3

a) Determine output elasticities for Labor.

b) Suppose that labor hours increase by 10%. By what percentagewill output increase?

Answer & Explanation Solved by verified expert
3.7 Ratings (552 Votes)
The following production function for bus transportation in a particular city Q a Where Fuel input in gallons F Capital    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

a buffer solution is prepared by mixing 100cm3 aqueous NH3 0.1mol dm-3 with 100cm3 NH4Cl mol...

Chemistry
Q

For determination 1: Initial concentration for H2C2O4: 0.31 mol/L Initial concentration for KMnO4: 0.011 mol/L Average elapsed time:...

Chemistry
Q

In serine protease catalytic triad mechanism the first and second products that leaves the active...

Biology
Q

1 point Use the midpoint rule with n 4 to approximate the integral 6 C...

Calculus
Q

chapter 14 Create an Excel spreadsheet to organize your answers to the following problem,...

Accounting
Q

Taylor's Remainder Theorem gives that if a function f(x) is 3 times differentiable on a...

Accounting
Q

Exercise 17.7(Static) Effect of various inventory cost valuations on cost of goods sold. LO 17-1...

Accounting
Q

Suppose that you are a financial analyst tasked with evaluating a company's plan to alter...

Accounting
Q

In need of help with completing the Balance Sheet for month end Oct.31 Custom...

Accounting
Q

E 11-34 FASB codification research Access the EASB Accounting Srandards Codification at the FASB website...

Accounting
Q

2. On January 1, 2020, Twist Corp. had cash and common shares of $60,000. At...

Accounting
Q

Christyanum Ltd owns 45% of Devoniatum Ltd and Devoniatum Ltd owns 35% of Chryseum Ltd....

Accounting