In the Cobb-Douglas production function , where , and are all positive, the parameters and measure:
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UGC-NET 2024 Question 40: Production and returns to scale
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In the Cobb-Douglas production function q = A L^α K^β, where A, α and β are all positive, the parameters α and β measure: (A) Output elasticities of inputs (B) Elasticity of substitution (C) Input price of output (D) Technological condition
Also written as: In the Cobb-Douglas production function q = A L^(alpha) K^(beta), where A, alpha and beta are all positive, the parameters alpha and beta measure:
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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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