Question: The following regression equation is estimated as a production function. Standard errors are in parentheses. logQ=1.37+0.632logK+0.452logL R-squared=0.98 (0.257) (0.219) cov(k, L)=-0.044. The sample size is

The following regression equation is estimated as a production function. Standard errors are in parentheses.

logQ=1.37+0.632logK+0.452logL R-squared=0.98

(0.257) (0.219)

cov(k, L)=-0.044. The sample size is 40. Test the following hypotheses at the 5% significant level.

(1) k=L

(2) There are constant returns to scale.

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