The elasticity of substitution of the production function is
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1 markMicroeconomicsProduction and returns to scaleProduction functions and the elasticity of substitutionModerateabout 2 min
DSE 2008 Question 10: Production and returns to scale
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The elasticity of substitution of the production function f(x,y)=cx^ay^b is (A) c/ab (B) ab/c (C) a+b (D) 1
Production and returns to scale has come up 92 times in 6 exams since 2007.
What this question tests
This question is on Production functions and the elasticity of substitution, part of Production and returns to scale in Microeconomics.
Cobb-Douglas, CES and fixed-proportions technologies, and how easily inputs substitute.
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