Suppose that firms face the following production function: Q = L5 + K1/5. What is the degree ofelasticity of substitution?infinity5/4O 1/5

Given: Production Function : Q=L15+K15

Answered: Suppose that firms face the following…

Suppose that firms face the following production function: Q = L/5+ K1/5, what is the degree of %3D elasticity of substitution? O infinity O 5/4 O 1/5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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