Which of the Following Is True

question 26

Multiple Choice

Which of the following is true?

• A) The Cobb-Douglas production function is given by the general formula Q = AL^αK^β and the constant elasticity of substitution is equal to 0.
• B) The Cobb-Douglas production function is given by the general formula Q = AL^αK^β and the constant elasticity of substitution is equal to 1.
• C) The Cobb-Douglas production function does not exhibit a constant elasticity of substitution.
• D) The Cobb-Douglas production function always takes the form Q = K² L².

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