11.6 Show that for the constant returns-to-scale CES production function q = [Kf + LPY^ a. MPK...

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11.6 Show that for the constant returns-to-scale CES production function q = [Kf + LPY^

a. MPK = (^\~

P and MPL = (j-\~"

b. RTS=[ — ) . Use this to show that cr = 1/(1 - p).

K I

c. Determine the output elasticities for Xand L. Show that their sum equals 1.

d. Prove that?

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Microeconomic Theory Basic Principles And Extensions

ISBN: 9780030335938

8th Edition

Authors: Walter Nicholson

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Question Posted: Nov 14, 2024 02:00 AM

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11.6 Show that for the constant returns-to-scale CES production function q = [Kf + LPY^ a. MPK...

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Microeconomic Theory Basic Principles And Extensions

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