Question

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Summit Farms hires unskilled workers to pick strawberries in their field. Output depends on the number of workers and on random factors such as weather. Summit Farms wishes to estimate its short run production function and has collected the following data over 15 days on the number of workers, L and output, q, measured in pounds and strawberries.

Day	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
L	5	7	8	6	6	8	10	11	12	9	10	10	8	7	8
q	250	385	442	331	324	442	500	478	432	490	480	494	317	399	448

            a. Using Excel’s Regression tool to estimate a production function of the form q = aL² + bL² for Summit Farms. (Hint: This production function implies that output is zero when L = 0. Therefore, you should set the constant in the regression to zero, which is an option in the Regression tool.

            b. Use the estimated function and Excel’s charting tool to plot the estimated total product, average product of labor and marginal product curves.

Answer 1