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In a Cobb-Douglas Production function, elasticity of factor abstitution (es) is equal to |
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Answer» ong>Answer: and constant elasticity of SUBSTITUTION (CES) are two functions that have been ... The Cobb-Douglas is a simple production function that is THOUGHT to provide ... competitive and that factors are paid their MARGINAL PRODUCT, then α and 1−α are equal ... critique and are likely to violate this assumption and PRODUCE biased es-. Explanation: |
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