The document discusses empirical models for short-run production and cost functions using cubic specifications. It describes how a cubic long-run production function can be used to derive a short-run cubic production function by holding capital constant. It also outlines the properties of average and marginal products and costs for such short-run cubic specifications, including how they are estimated and restrictions on the parameters.

1. Chapter 10 Production & Cost Estimation

6. MP & AP Curves for the Short-Run Cubic Production Function (Figure 10.1) 10- Q = AL 3 + BL 2

13. Summary of Short-Run Empirical Production Functions 10- Short-run cubic production equations Total product Average product of labor Marginal product of labor Diminishing marginal returns Restrictions on parameters

14. Summary of Short-Run Empirical Cost Functions 10- Short-run cubic cost equations Total variable cost Average variable cost Marginal cost Average variable cost reaches minimum at Restrictions on parameters