In CES production function, the elasticity of substitution is
A) unity
B) zero
C) negative
D) constant

Name: In CES production function, the elasticity of substitution is A) unity B) zero C) negative D) constant
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Question

Quizplus · Accepted Answer

The CES (Constant Elasticity of Substitution) production function is characterized by having a constant elasticity of substitution between input factors, which is not necessarily equal to unity, zero, or negative, but is a constant value.

In CES Production Function, the Elasticity of Substitution Is