The Equation of Translog Cost Function Is
A) B)

question 57

Multiple Choice

The equation of translog cost function is

• A).
• \[\begin{aligned}
• \log T C = & b _ { 0 } + b _ { 1 } \log Q + b _ { 2 } \log w + b _ { 3 } \log r + b _ { 4 } ( \log Q ) ^ { 2 } \\
• & + b _ { 5 } ( \log w ) ^ { 2 } + b _ { 6 } ( \log r ) ^ { 2 } + b _ { 7 } ( \log w ) ( \log r ) \\
• & + b _ { 8 } ( \log w ) ( \log Q ) + b _ { 9 } ( \log r ) ( \log Q )
• \end{aligned}\]
• B)
• \[\begin{array} { l }
• M P _ { L } = \left[ L ^ { \frac { 1 } { 2 } } + K ^ { \frac { 1 } { 2 } } \right] L ^ { - \frac { 1 } { 2 } } \\
• M P _ { K } = \left[ L ^ { \frac { 1 } { 2 } } + K ^ { \frac { 1 } { 2 } } \right] K ^ { - \frac { 1 } { 2 } }
• \end{array}\]
• C)
• \[T C \left( Q _ { 1 } , Q _ { 2 } \right) = \left\{ \begin{array} { l }
• 0 , \text { if } Q _ { 1 } = 0 \text { and } Q _ { 2 } \\
• 1000 + 2 Q _ { 1 } + 3 Q _ { 2 } ,
• \end{array} \right.\]
• D) \(T = \mathrm { t } + c Q + \mathrm { a } w + \mathrm { b } r\)

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