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       log:  D:\My Documents\My Downloads\Econ 170\chapter 9, question 3.log
  log type:  text
 opened on:   1 Nov 2005, 09:53:18

. generate float log2rvm= log(rvm2)

. replace log2rvm = (log rvm)^2
(246 real changes made)

. regress logtcost logrvm log2rvm

      Source |       SS       df       MS              Number of obs =     246
-------------+------------------------------           F(  2,   243) = 2899.07
       Model |  460.317879     2  230.158939           Prob > F      =  0.0000
    Residual |   19.291914   243  .079390593           R-squared     =  0.9598
-------------+------------------------------           Adj R-squared =  0.9594
       Total |  479.609793   245  1.95759099           Root MSE      =  .28176

------------------------------------------------------------------------------
    logtcost |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
      logrvm |   .8660642   .1248086     6.94   0.000     .6202194    1.111909
     log2rvm |   .0175937   .0086463     2.03   0.043     .0005625    .0346249
       _cons |    1.30154   .4443496     2.93   0.004     .4262715    2.176808
------------------------------------------------------------------------------

. generate float marginalcost2=(logrvm+log2rvm)-(log(rvm-1)+(log(rvm-1))^2)

. generate float elasticity=(marginalcost2*rvm)/totalcost

. twoway connected elasticity rvm, title(Elasticity of Total Cost with Respect to Output) xtit
> le(Output) ytitle(Elasticity)

. twoway scatter elasticity rvm, title(Elasticity of Total Cost with Respect to Output) xtitle
> (Output) ytitle(Elasticity)

. graph save "D:\My Documents\My Downloads\Econ 170\chapter 9, question 3.gph", replace
(note: file D:\My Documents\My Downloads\Econ 170\chapter 9, question 3.gph not found)
(file D:\My Documents\My Downloads\Econ 170\chapter 9, question 3.gph saved)

. - preserve

. generate float averagefirmsize= sum(rvm)/obs

. 
. summarize rvm

    Variable |       Obs        Mean    Std. Dev.       Min        Max
-------------+--------------------------------------------------------
         rvm |       246    2695.707    3603.488     23.276   20196.31

. 
. log close
       log:  D:\My Documents\My Downloads\Econ 170\chapter 9, question 3.log
  log type:  text
 closed on:   1 Nov 2005, 10:13:42
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