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Maths for Economics question (3) Given the well-behaved production function Q(L,K) = ALK, (A,a,b > 0), which of the following statements is correct? 1. The

Maths for Economics question

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(3) Given the well-behaved production function Q(L,K) = ALK", (A,a,b > 0), which of the following statements is correct? 1. The elasticity of substitution is always constant but its value depends on the size of A. ii. The elasticity of substitution is 1 only if a + b = 1- iii. The elasticity of substitution is always 1. iv. The elasticity of substitution is always -1. v. None of the above are correct

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