Question: Consider the following Cobb-Douglas production function for the bus... Consider the following Cobb-Douglas production function for the bus transporta- tion system in a particular city:

Consider the following Cobb-Douglas production function for the bus...

Consider the following Cobb-Douglas production function for the bus transporta- tion system in a particular city: Q = L 1F 2K 3 whereL = laborinputinworkerhours F = fuelinputingallons K = capitalinputinnumberofbuses Q = outputmeasuredinmillionsofbusmiles Suppose that the parameters (, 1, 2, and 3) of this model were estimated using annual data for the past 25 years. The following results were obtained: = 0.0012 1 = 0.45 2 = 0.20 3 = 0.30 a. Determine the (i) labor, (ii) fuel, and (iii) capital input production elasticities

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