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What is the elasticity of substitution, o, of the CES production function below? d q= (alP + bkP) Assume d and p are positive constants and 0

What is the elasticity of substitution, o, of the CES production function below? d q= (alP + bkP) Assume d and p are positive constants and 0

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter2: Equations And Inequalities
Section2.7: More On Inequalities
Problem 44E
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What is the elasticity of substitution, o, of the CES production function below? q = (alP + bkP) Assume d and p are positive constants and 0<a<1 and 0 <b< 1. Also assume capital is measured on the vertical axis and labor on the horizontal axis. The elasticity of substitution is O = |: (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with the / character.)
Transcribed Image Text:What is the elasticity of substitution, o, of the CES production function below? q = (alP + bkP) Assume d and p are positive constants and 0<a<1 and 0 <b< 1. Also assume capital is measured on the vertical axis and labor on the horizontal axis. The elasticity of substitution is O = |: (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with the / character.)
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