Question:
Consider a production function of the form:
$ Y = π log L + (1 β π) log K , π β (0, 1), π β 0.5 $
where, Y is output, L is labour, and K is capital. Then, the absolute value of elasticity of substitution is
Consider a production function of the form:
$ Y = π log L + (1 β π) log K , π β (0, 1), π β 0.5 $
where, Y is output, L is labour, and K is capital. Then, the absolute value of elasticity of substitution is
$ Y = π log L + (1 β π) log K , π β (0, 1), π β 0.5 $
where, Y is output, L is labour, and K is capital. Then, the absolute value of elasticity of substitution is
Updated On: Oct 1, 2024
- 1
- a
- (1 β a)
- $ \infty $
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