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Commerce · Q148

Economics

Graduate and Post Graduate · Commerce · question 148

Q148

A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is

A.
Equal to 1
Answer
B.
More than 1
C.
Less than 1
D.
0

Answer: Option A

Solution

Answer: Option A
Solution:
A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is Equal to 1.