Suppose the cost function is a multivariate of the type


Suppose the cost function is a multivariate of the type:

where Q is output and K, capital; L, Labor; and M, materials are inputs.

1. Find the marginal products of the inputs.

2. Discuss the returns to scale

3. What is the relationship between returns to scale and economies of scale?

4. Derive the elasticities and interpret the results.

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Business Economics: Suppose the cost function is a multivariate of the type
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