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Suppose the production function for a good is given by (,)=(+)1/2, where and are capital and labor inputs. Consider the following three statements about this
Suppose the production function for a good is given by (,)=(+)1/2, where and are capital and labor inputs. Consider the following three statements about this function:
I.The function exhibits decreasingreturns to scale.
II.The function has a constant marginal rate of technical substitution.
III.The function exhibits a constant elasticity of substitutionequal to infinity
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