The International Calculator Company of China produces handheld calculators in its plant. It tries to keep the number of workers in the plant constant so the only variable factor that can be measured is materials. Over the last seven monthly periods, the data for materials and quantity produced were the following:
Materials Quantity
70 ..................................... 450
60 ..................................... 430
80 ..................................... 460
95 ..................................... 490
77 ..................................... 465
100 .................................... 550
85 ...................................... 490
a. Calculate a Cobb-Douglas production function of the form Q = aMb.
b. Discuss the important properties of your results.
c. What is the marginal product of materials?