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Explain why the constant elasticity of substitution is considered superior to marginal rate of technical substitution?
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Is Cobb Douglas production function is constant elasticity substitution production function?
Yes, the Cobb-Douglas production function is a specific type of constant elasticity of substitution (CES) production function. In a Cobb-Douglas function, the elasticity of substitution between inputs is constant and equal to one. This means that the percentage change in the ratio of inputs used will result in a proportional percentage change in the marginal rate of technical substitution, reflecting a consistent trade-off between the inputs.
What is the definition of the marginal rate of technical substitution?
The marginal rate of technical substitution is the rate at which one input can be substituted for another input in a production process while keeping the level of output constant.
What has the author Marlen F Miller written?
Marlen F. Miller has written: 'The constant elasticity of substitution production function and its application in research' -- subject(s): Production functions (Economic theory)
Is elasticity extensive or intensive property?
Elasticity is an intensive property because it does not depend on the amount of the material being considered, but rather on its intrinsic physical characteristics. It remains constant regardless of the size or quantity of the material.
Is price elasticity constant along demand curves?
explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear.
What Circuits considered constant?
What is considered "constant current"
What is the difference between slutsky and hicksian approach of in difference curve?
The Hicks substitution effect keep utility constant rather than keeping pur- chasing power constant.
What is Elasticity of demand in steel industry?
Elasticity of demand in the steel industry is inelastic. The price of steel can fluctuate and the demand will remain constant. As a result, as price moves, revenue will move in the same direction.
What is the significance of the spring constant of a rubber band in determining its elasticity and stretchability?
The spring constant of a rubber band is important because it determines how easily the rubber band can stretch and return to its original shape. A higher spring constant means the rubber band is stiffer and harder to stretch, while a lower spring constant means it is more elastic and easier to stretch. This property affects the overall elasticity and stretchability of the rubber band.
What is difference between slope and the calculation of elasticity for a linear demand curve?
Along a linear demand curve elasticity varies from point to point of the demand curve with respect to different price, but slope is constant
What is ratio of adiabatic elasticity isothermal elasticity?
The ratio of adiabatic elasticity to isothermal elasticity is given by the specific heat ratio (γ), which is defined as the ratio of the specific heat at constant pressure (Cp) to the specific heat at constant volume (Cv). For an ideal gas, γ is typically greater than 1, indicating that adiabatic processes involve greater changes in pressure and volume compared to isothermal processes. This relationship highlights how the temperature changes under adiabatic conditions differ from those under isothermal conditions.
What was Roberts hookes law?
Robert Hooke's law states that within elastic limit, the strain produced is directly proportional to the stress applied. Hence Stess/strain = constant This constant is known as Modulus of elasticity.
