b) Consider the following CES production function: Q = A[al-' + (1 – a)K-7 where Q is output and Land K are inputs labour and capital, respectively. i) Interpret the parameters A ,a.l and v . ii) Compute the Elasticity of substitution iii) Show how tho CES can manifest itself into other foms of production technology by making various assumptions about e

b) Consider the following CES production function: Q = A[al-' + (1 – a)K-7 where Q is output and Land K are inputs labour and capital, respectively. i) Interpret the parameters A ,a.l and v . ii) Compute the Elasticity of substitution iii) Show how tho CES can manifest itself into other foms of production technology by making various assumptions about e

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

b) Consider the following CES production function:
Q = A[al-* + (1 – a)K-
where Q is output and Land K are inputs labour and capital, respectively.
i) Interpret the parameters A ,a.l and v.
ii) Compute the Elasticity of substitution
iii) Show how the CES can manifest itself into other forms of production technology
by making various assumptions about {

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