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What is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4? (a) o = (b) o = 14 -1 +16 (c) σ= 1 (d) σ = 3 2

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.1CE

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Question

What is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4?
(a) o = 1
(b) o = -1
(c) o = 1
(d) σ = 3
2

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