AEB 6933 Production Economics Examination I I. Using the data set on Illinois corn production from the class web page, estimate a Cobb-Douglas production function. The first column in the dataset includes data on nitrogen use in pounds per acre, the second column is phosphorous in pounds per acre, the third column is potassium in pounds per acre, and the fourth column is corn yield in bushels per acre. Using the estimated coefficients, derive the firm level conditional demand curves and cost function. Assuming that nitrogen is $218/ton, phosphorous is $13.40/ton, potassium is $152/ton, and corn is $3.09/bushel, are the firms minimizing cost? (40 pts) II. Using the same data fit an alternative production function of your choice
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class web page, Illinois corn production, Production Economics Examination