=+B.**Suppose that the production technology is fully characterized by the CobbDouglas production function x 5 f1,, k2

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=+B.**Suppose that the production technology is fully characterized by the Cobb–Douglas production function x 5 f1,, k2 5 A, a k

b with a 1 b , 1 and A,

a, and b all greater than zero.

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