The primary purpose of the cobb-douglas power function is to: a. allow one to make estimates of cost-output relationships. b. aid one in gaining accurate empirical values for economic variables. c. calculate a short-run linear total cost function. d. a and b e. allow one to make predictions about a resulting increase in output for a given increase in the inputs.

Coop inc. owns 40% of chicken inc., both coop and chicken are corporations. chicken pays coop a dividend of $10,000 in the current year. chicken also reports financial accounting earnings of $20,000 for that year. assume coop follows the general rule of accounting for investment in chicken. what is the amount and nature of the book-tax difference to coop associated with the dividend distribution (ignoring the dividends received deduction)?