Question: The CES Function is Q(K, L)= A[BKP + (1-B)LP] 1. Determine the returns to scale of this production function. 2. Find o, the elasticity

The CES Function is Q(K, L)= A[BKP + (1-B)LP] 1. Determine the

The CES Function is Q(K, L)= A[BKP + (1-B)LP] 1. Determine the returns to scale of this production function. 2. Find o, the elasticity of substitution. 3. 4. MRs = du lax 20 /27. Express K/L as a function of w/r. How does the relationship between K/L and w/r change when p changes? Show that o 1 for the Cobb-Douglas Production Function.

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