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    Determine the marginal product of inputs

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    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?

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    Solution Preview

    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 Summary

    Solution depicts the steps to determine the returns to scale. It also estimates the marginal product of input factors.