GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cobb-Douglas production function in its initial form has the following properties
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Elasticity of substitution as constant and unity
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Elasticity of substitution as unity
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Constant return to scale
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Power function
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Explanation:
Detailed explanation-1: -The formula for this form is: Q = f(L, K), in which labor and capital are the two factors of production with the greatest impact on the quantity of output.
Detailed explanation-2: -The equation of a traditional Cobb-Douglas production function is Q=AK^aL^b, where K is capital, and L is labor.
There is 1 question to complete.