18. In(PROD) = B1 - B2 In(AREA) + B; In(LABOR) + Ba In(FERT) +e

(a) Using a 5% level of significance. test the hypothesis that the elasticity of production with respect to land is equal to the elasticity of production with respect to labor.

(b) Using a 10% level of significance, test the hypothesis that the production function exhibits constant returns to scale. That is. Ho : B2 + B; + Ba = 1.

(c) Using a 5% level of significance, jointly test the two hypotheses in parts

(a) and

(b). That is, Ho : B2 = B; and B2 + B; + B4 = ].

(d) Using a 5% level of significance, test the hypothesis that the mean of log output equals 1.5 when AREA = 2. LABOR = 100. and FERT = 175. State the null and alternative hypotheses in terms of B1. B2, B3, and B4.