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When Estimating a Cubic Short-Run Production Function Q=AI3+BL2Q = A I ^ { 3 } + B L ^ { 2 }

Question 10

Multiple Choice

When estimating a cubic short-run production function Q=AI3+BL2Q = A I ^ { 3 } + B L ^ { 2 } using linear regression analysis, you must


A) transform the equation into linear form by defining L3 and L2 as L3 and L2, respectively.
B) suppress the intercept term (regress through the origin) .
C) convert to logarithms.
D) both a and b
E) both b and c

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