Question

According to cobb douglus production function, elasticity of substitution is:
a. Equal to unity b. Equal to zero
c. equal to infinity c. greater than one​

Answer 1

Answer:

(B) Elasticity of Substitution under Constant Returns to Scale (C) Cobb-Douglas Production Functions ... Notice that as the MRTS does not change at all along the isoquant, then D M = 0.