A constant elasticity cost function A) takes a form such as TC = a Q^b w^c r^d and is useful in empirical work because it can be converted into a linear form using logarithms. B) takes a form such as $T C = w L + r K$ , where L and K are chosen to minimize cost, and w and r are input prices. C) takes a form such as TC = a Q² + KL. D) is given by TC = AC x Q.

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A constant elasticity cost function takes a form such as TC = a Q^b w^c r^d and is useful in empirical work because it can be converted into a linear form using logarithms. This linear form allows for more straightforward estimation and interpretation of the parameters in empirical analysis. The other options do not accurately describe a constant elasticity cost function.

A Constant Elasticity Cost Function A) Takes a Form Such TC=wL+rKT C = w L + r KTC=wL+rK

A Constant Elasticity Cost Function
A) Takes a Form Such $T C = w L + r K$