Question

The Green Revolution (see the Mini-Case “ Malthus and the Green Revolution”) was based in part on the extensive experimentation. The following data illustrates the relationship between nitrogen fertilizer (in pounds of nitrogen) and the output of a particular type of wheat (in bushels). Each observation is based on one acre of land and all other relevant inputs to productions (such as water, labor, and capital) are held constant. The fertilizer levels are 20, 40, 60, 80, 100, 120, 140, and 160, and the associated output levels are 47, 86, 107, 131, 136, 148, 149, 142. A. Use Excel to estimate the short-run production function showing the relationship between fertilizer input and output. (Hint: As described in Chapter 3, use the Trendline option to regress output on fertilizer input. Try a Linear function and try a Quadratic function and determine which function fits the data better.

Answer 1