Question: For the CES production function q = (aL + [1 - a]K ) d/ , does AP L /L have an unambiguous sign?

For the CES production function q = (aLρ + [1 - a]Kρ)d/ρ, does ∂APL/∂L have an unambiguous sign?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Therefor... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!