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

question 10

Multiple Choice

When estimating a cubic short-run production function $Q = A I ^ { 3 } + B L ^ { 2 }$ 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

---

Definitions:

Equalized Workload Method

A market-based sales force sizing approach in which sales managers use sales-activity calculations to determine proper staffing levels.

Incremental Productivity Method

A technique for measuring the additional output produced as a result of an increase in a specific input, often used in evaluating employee or process efficiency.

Sales Territory

A designated geographic area or customer group for which a salesperson or team is responsible.

Competitive Benchmarking

A market-based sales force sizing approach in which sales managers match the size of competitors’ sales forces.