In the Cobb-Douglas function, coefficients are interpreted as A) Slopes B) Elasticities C) Independent variables D) R² values E) Chi-square values

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In the Cobb-Douglas production function, the coefficients (usually denoted by alpha and beta) represent the output elasticities of the inputs, typically labor and capital. These elasticities measure the percentage change in output resulting from a one percent change in either labor or capital, holding other factors constant.

In the Cobb-Douglas Function, Coefficients Are Interpreted as