Answered: 1. Demonstrate that ɛ = Ex,l + Ex,k…

1. Demonstrate that ɛ = Ex,l + Ex,k Note that: aA /A = Ək / k = al / 1 And &r/ is the elasticity product of the factor l. %| Similar for the factor k.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Demonstrate that ɛ = Ex,l + Ex,k
Note that: aA /\ = Ək / k = Əl / 1
And Ex.l is the elasticity product of the factor l.
Similar for the factor k.
2. Find the o of: (with the process)
%3D
x (L, K) = aLP + bKP)ɛ/p
If p<1 and a = 1; b = 1
%3D

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