Suppose you are given the following Total Product Function: ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function.
1. Take the log of the above function and discuss the elasticities of each input.
2. Discuss the returns to scale.
3. Suppose K = 1,000; L = 200 workers; and M = value of all materials use at 450. Derive the total product or output.
4. Find the Marginal products of capital, labor, and materials (individually).
5. Find the Average products of capital, labor, and materials (individually)
6. Find and interpret the output elasticity (or elasticities).