The president of the Tacke Corporation believes that statistical research by his staff shows that the firm's long run total cost function curve can be represented as TC=oqQ~^1PL~^2PK~^3

Where TC is the firm's total cost, Q is output, PL is the price of labor, PK is the price of capital.

a) Tacke's president says that ~1 measures the elasticity of cost with respect to output, that is the percentage change in total cost resulting from a 1 percent change in output. Is he correct? Why or why not?

b) He also says that is ~1<1, economies of scale are indicated, whereas ~1>1 diseconomies of scale are indicated. Is he correct? Why or why not?