Which of the Following Production Functions Exhibits a Constant Elasticity $q = k ^ { 0~5 } l ^ { 0~5 }$

question 6

Multiple Choice

Which of the following production functions exhibits a constant elasticity of substitution?

• A)q = 3k + 2l.
• B) \(q = k ^ { 0~5 } l ^ { 0~5 }\) .
• C) \(q = l - \frac { l } { k } - \frac { l } { l }\) .
• D)All of these production functions have a constant elasticity of substitution.

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Definitions:

Raw Materials Cost

The expense incurred by a company for the raw materials that are used in the manufacturing process to produce finished goods.

Budgeted Selling Price

The price at which a company plans to sell its products or services, often used in budgeting and financial forecasting.

Direct Labor-Hours

A quantification of the total hours spent by employees working directly on the production of goods or services.

Total Cash Collected

The sum of all cash received by a company during a specified period, including sales, accounts receivable collections, and other cash receipts.