Assume that, for a country called Magnesia

Assume that, for a country called Magnesia, you are trying to estimate theparameters of the Cobb-Douglas production function expressed as follows:Y = ? K? L? e? (1)Where: Y is output; K is capital input; L is labour input; ?, ?, and ? are parameters to beestimated; e is the mathematical constant; and ? is the disturbance term.

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