Suppose the Cobb-Douglas production function is given as: , where b0 = level of technology, b1 = proportion with which labor is used in production, b2 = proportion with which capital is used in production. Then, a. Find marginal product of factors (L and K). b. Compute marginal rate of substitutions (MRSLK and MRSKL). c. Find the elasticity of substitution for this production function. d. Compute elasticity of output with respect to labor and capital.

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