The production function for the automotive and parts industry is qequals=Upper L Superscript 0.25L0.25Upper K Superscript 0.18K0.18Upper M Superscript 0.61M0.61, where M is energy and materials (based loosely on Klein, 2003). What kind of returns to scale does this production function exhibit?

Is this production function exhibits

increasing returns to scale?

The marginal product of materials,

MP Subscript Upper MMPM,

is?

A. MP Subscript Upper MMPMequals=0.610.61(q/M)

B. MPMequals=0.610.61Upper L Superscript 0.25L0.25Upper K Superscript 0.18K0.18Upper M Superscript negative 0.39M0.39

C. MP Subscript Upper MMPMequals=Upper L Superscript 0.25L0.25Upper K Superscript 0.18K0.18Upper M Superscript 0.61M0.61

D. Both a AND b

E. aLL THE ABOVE