Answered: 2. Show that the two-input CES…

2. Show that the two-input CES production function used in this lecture has DRS, CRS or IRS depending on whether 8 is smaller than, equal, or larger than one.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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2. Show that the two-input CES production function used in this lecture has DRS, CRS
or IRS depending on whether 8 is smaller than, equal, or larger than one.

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