What is the elasticity of substitution, , of the CES production function q = (aL +

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What is the elasticity of substitution, σ, of the CES production function q = (aL^ρ + bK^ρ)^d/ρ?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Sep 21, 2024 05:17 AM

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What is the elasticity of substitution, , of the CES production function q = (aL + bK ) d/ ?
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What is the elasticity of substitution, , of the CES production function q = (aL +

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The elasticity of substitution is thepercentage change in the capitallabor ratio di...View the full answer

Microeconomics Theory and Applications with Calculus

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