Answer to Question #198512 in Microeconomics for aman

Question

c.  Suppose that capital input (the number of buses) is decreased by 3 percent next year (which, certain older buses are taken out of service). Assuming that the other inputs are held constant, determine the approximate percentage change in output.

d.  What type of returns to scale appears to characterise the transportation system (ignore the issue of statistical significance)?

e.  Discuss some of the methodological and measurement problems one might encounter in using time-series data to estimate the parameters of this model.  

Answer 1

Dear aman, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order