(Answered) An analyst for davidson steel company uses a cobb-douglas

Economics

An analyst for Davidson Steel Company uses a Cobb-Douglas production function

Q = A Kα Lβ

for forecasting the company's output. By using quarterly data from 1996 to 2012, she estimates the model as
ln Qˆ t = 0.223 + 0.482 ln Kt + 0.518 ln Lt

(a) What is the estimate of A?

(b) Is this a constant return to scale production function?

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Microeconomics, Economics

Category:- Microeconomics
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