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C. Translog (Transcendental Logarithmic) Production Function
where L = labour, K = capital, M = materials and supplies, and q = product.
where L = labour, K = capital, M = materials and supplies, and q = product. The parameter nu is a measure of the economies of scale, while the parameter rho yields the elasticity of substitution: sigma = 1/(1 + rho).
The estimated coefficients of the Translog production and cost functions will vary with the parameters sigma, nu, alpha, beta and gamma of the CES production function.