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Cobb Douglas Production Function And Elasticity of Substitution | Ecoholics

Автор: ECOHOLICS - Largest Platform for Economics

Загружено: 2022-07-20

Просмотров: 17286

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Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs (particularly physical capital and labor) and the amount of output that can be produced by those inputs.
One of the limitations of Cobb-Douglas production function is the unitary elasticity of substitution between labour and capital. This is a rigid assumption of Cobb-Douglas production function. “The elasticity of substitution in the Cobb-Donglas Production Function is unity”

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Cobb Douglas Production Function And Elasticity of Substitution | Ecoholics

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