6.22. Consider a production function whose equation is given by the formula Q ! LK2 , which...

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6.22. Consider a production function whose equation is given by the formula Q ! LK2

, which has corresponding marginal products, MPL ! K2 and MPK ! 2LK.

Show that the elasticity of substitution for this production function is exactly equal to 1, no matter what the values of K and L are.

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 15, 2024 03:01 AM

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6.22. Consider a production function whose equation is given by the formula Q ! LK2 , which...

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Microeconomics

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