Based on the regression equation, estimated production is shown in the fourth column of the above table.
c. The sum of the two coefficients, b and c, is greater than 1 (.825 + .346 = 1.171). Therefore, the production function exhibits increasing returns to scale.
d. The elasticities of production of the two factors are their respective coefficients, b and c.
e. The marginal product of labor is decreasing since the coefficient b is less than 1.