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I would like to know the derivatives of the following function:

$ y = x^e*e^x$

At first sight it looks like the product rule should be used and so one would get $e*x^{e-1}*e^x+x^e*e^x$. Is this correct?

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Yes indeed, your answer is correct; you need only the product rule:

$$ \begin{align} y & = x^e\cdot e^x \\ \\ y' & = e \cdot x^{e-1}\cdot e^x + x^e\cdot e^x \tag{we can "factor" this}\\ \\ & = {\bf e} \cdot \color{blue}{\bf x^{e - 1} \cdot e^x} + {\bf x} \cdot \color{blue}{\bf x^{e - 1} \cdot e^x} \\ \\ & = {\bf(e + x)}\cdot \color{blue}{\bf x^{e-1}\cdot e^x} \qquad\qquad\qquad\qquad\tag{factored} \end{align} $$

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