Question: a. Write the linear econometric model that represents a production function in which log of output is a linear function of log of capital. Estimate

a. Write the linear econometric model that represents a production function in which log of output is a linear function of log of capital. Estimate the coeicients using a simple (uniyariate} regression 0L8 model. Explain your results. {3 marks] b. Explain the meaning of the term elasticity. Use your results to report the elasticity of output with respect to changes in capital. (3 marks]

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