Question: years. (a) Estimate the following regression model: Ct = 0 + 1Pt + 2P2 t + 3P3 t + ut and discuss the results. (b)

years.

(a) Estimate the following regression model:

Ct = β0 + β1Pt + β2P2 t + β3P3 t + ut and discuss the results.

(b) Check the hypothesis that the cost function is of second degree only.

(c) Check the hypothesis that the cost function is linear.

(d) Obtain and plot the marginal cost function.

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