Question:
Consider the production function:
$ Q(K, L) = (2 \sqrt {K} + 3 \sqrt{L})^2$ where Q is the output, K is capital, and L is labour. If $\eta_K$ and $\eta_L$ denote the output elasticities with respect to capital and labour, respectively, then the value of ($\eta_K$ + $\eta_L$) is
Consider the production function:
$ Q(K, L) = (2 \sqrt {K} + 3 \sqrt{L})^2$ where Q is the output, K is capital, and L is labour. If $\eta_K$ and $\eta_L$ denote the output elasticities with respect to capital and labour, respectively, then the value of ($\eta_K$ + $\eta_L$) is
$ Q(K, L) = (2 \sqrt {K} + 3 \sqrt{L})^2$ where Q is the output, K is capital, and L is labour. If $\eta_K$ and $\eta_L$ denote the output elasticities with respect to capital and labour, respectively, then the value of ($\eta_K$ + $\eta_L$) is
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Updated On: Oct 1, 2024
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The Correct Option is B
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The correct answer is (B): 1
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