Question: Show that the CES production function q = (aL + bK) 1/ can be written as q = B()[cL + (1 - c) * K]

Show that the CES production function q =

(aLρ + bKρ)

1/ρ can be written as q = B(ρ)[cLρ +

(1 -

c) * Kρ]

1/ρ. M

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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 Microeconomics Principles Questions!

Q:

In our discussion of the Melitz (2003) model, we assumed that utility U of a consumer was given by U = [ c ( ) ( 1 ) / d ] / ( 1 ) (1) Note that we have introduced the CES utility function defined...

Q:

This question combines capital accumulation from Solow with the idea production function of Romer. Our capital accumulation equation can be written in terms of capital growth:? KY K KK ?? ? ?? = = ?...

Q:

Problem 1: Marginal cost and average costs 1. Explainin words why the marginal cost curve must cross the average cost curve al the minimum of the average cost. MNow consider the following production...

Q:

1. 4.13 Show that the CES production function q = (aL + bK)1/ can be written as q = B() [cL + (1- c) * K]1/. M 4.14 What is the MRTS of the CES production function q = (aL + bK)d/? (See Solved...

Q:

Show that the CES production function q = (aL( + bK()1/( can be written as q = B(()[cL(+ (1 - c) K(]1/(?

Q:

Show that the CES production function q = (aL( + bK()1/( can be written as q = B(()[cL(+ (1 - c) K(]1/(?

Q:

4.13 Show that the CES production function q = (aL + bK ) 1/ can be written as q = B()[cL + (1 - c) * K ] 1/ . M

Q:

4.14 Show that the CES production function q = (aL + bK)1/ can be written as q = B()[cL + (1 - c) * K]1/. M

Q:

4.13 Show that the CES production function q = (aL + bK ) 1/ can be written as q = B() [cL + (1 - c) * K ] 1/ . M L-9687

Q:

Suppose we are given the constant returns-to-scale CES production function q 5 1k 1 l 2 1/ . a. Show that MPk 5 1q/k2 12 and MPl 5 1q/l2 12 . b. Show that RTS 5 1k/l2 12 ; use this to show that 5...

Q:

A cantilever beam, length (L-3m) loaded with uniform load (30 KN/m). Maximum tensile and compressive stresses are (150 N/mm). The cross sectional of the beam is rectangular. Find the dimensions of...

Q:

(a) From the following information prepare process account. Opening stock 800 Units @ 7 per unit Transfer from Process NO - I 12,000 units costing Transfer to next process Normal process loss Closing...

Q:

2 3 Homework Fall 2 0 2 4 Question 5 5 1 2 / 1 0 View Policies Current Attempt in Progress Crane Manufacturing uses flexible budgets to control its selling expenses. Monthly sales are expected to be...

Q:

Draw all constitutional isomers with molecular formula C 4 H 11 N, and provide a name for each isomer.