Consider the following Cobb-Douglas production function for the bus transportation system in a particular city: Q = aL B₁F B₂K B3 where L = labor input in worker hours, F = fuel input in gallons, K = capital input in number of buses, and Q = output measured in millions of bus miles. Suppose that the parameters (a, B₁, B2, and B3) of this model were estimated using annual data for the past 25 years. The following results were obtained: α = 0.0012; B₁ = 0.45; B₂ = 0.20; and 3 = 0.30. Determine the labor, fuel, and capital input production elasticities. Input Production Elasticities Labor Fuel Capital Suppose that labor input (worker hours) is increased by 2% next year (with the other inputs held constant). What is the approximate percentage change in output? % Suppose that capital input (number of buses) is decreased by 1% next year (when certain older buses are taken out of service). Assuming that the other inputs are held constant, what is the approximate percentage change in output? % returns to scale appear to characterize this bus transportation system. (Hint: Ignore the issue of statistical significance.)

In 1997, researchers at Texas A&M University estimated the operating costs of cotton gin plans of various sizes. A quadratic model of cost (in thousands of dollars) for the largest plants was found to be very similar to: C(q)=0.023q^2+21.8q+326 where q is the annual quanity of bales (in thousands) produced by the plant. Revenue was estimated at $70 per bale of cotton. find the MC(q)/MR(q)/MP(q)/

Every year in September, the NFL (National Football League) announces official prices of their next Super bowl tickets. The official ticket prices for 2022 Super bowl ticket in the NFL official websites started from $6,800 per person and it was up to over $81,800 per person depending on the location of the seats from the field. However, about three fourth of all tickets were already distributed to the NFL teams. The other one fourth are distributed to the media, NFL partners and sponsors. As a result, a small fraction of a total of about 70,000 tickets were sold in the secondary market. Those tickets were available to buy and sell in the official NFL online sites and other ticket brokers. Given the limited supply of tickets available to the NFL fans to purchase, the actual prices are dominated by the wide fluctuation of demand caused by many factors such as the venue of the game, the winning teams for the championship match, the packages of tickets offered by the brokers, and the…

Do the following production functions exhibit increasing, constant, or decreasing returns to scale in K and L (assuming A is fixed)? (a) Y=AK^⅓ L^⅓ (b) Y=AK^⅔ L^