A Cobb- Douglas production function was estimated for six types of farms. There were five inputs in
Question:
a. Do there appear to be increasing returns to scale in any of these six types of farms?
b. In what type of farm does a 1% increase in labor have the largest percentage effect on output?
c. Based on these results, would you expect output to increase if many of the farms included in this sample were merged?
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Related Book For
Managerial Economics Theory Applications and Cases
ISBN: 978-0393912777
8th edition
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
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