The production function for the automotive and parts industry is q=L^0.27K^0.16M^0.61, where M is the energy and materials. What kind of returns to scale does this production function exhibit? What is the marginal product of Labor, capital and Materials?© BrainMass Inc. brainmass.com October 10, 2019, 8:34 am ad1c9bdddf
Please refer attached file for the equations and solution.
In this case, production function is represented by a Cogg Douglas function.
Where each exponent is respective elasticity of ...
Solution depicts the steps to determine the returns to scale. It also estimates the marginal product of input factors.