6.24. Consider a CES production function given by Q ! (K0.5 L0.5) 2 . a) What...

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6.24. Consider a CES production function given by Q !

(K0.5 " L0.5)

a) What is the elasticity of substitution for this production function?

b) Does this production function exhibit increasing, decreasing, or constant returns to scale?

c) Suppose that the production function took the form Q ! (100 " K0.5 " L0.5)

. Does this production function exhibit increasing, decreasing, or constant returns to scale?

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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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6.24. Consider a CES production function given by Q ! (K0.5 L0.5) 2 . a) What...

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Microeconomics

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