Answered: 2. Show that the two-input CES…

2. Show that the two-input CES production function used in this lecture has DRS, CRS or IRS depending on whether 8 is smaller than, equal, or larger than one.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 21PAE

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2. Show that the two-input CES production function used in this lecture has DRS, CRS
or IRS depending on whether 8 is smaller than, equal, or larger than one.

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