A “Cobb–Douglas” production function relates production ( Q ) to factors of production, capital ( K ), labor ( L ), and raw materials ( M ), and an error term u using the equation Q = λK β 1 L β 2 M β...

A “Cobb–Douglas” production function relates production (Q) to factors
of production, capital (K), labor (L), and raw materials (M), and an error
term u using the equation
Q
=
λK^β₁
L^β₂
M^β₃
e^u,
where
λ,
β
₁,
β
₂, and
β
₃
are
production parameters. Suppose that you have data on production and the
factors of production from a random sample of firms with the same Cobb–
Douglas production function. How would you use regression analysis to
estimate the production parameters?