If the elasticity of substitution of a production function is equal to zero,then this production function is a
A)linear production function
B)fixed proportion production function
C)Cobb-Douglas production function
D)None of above.

Question

Quizplus · Accepted Answer

A zero elasticity of substitution means that the factors of production are used in fixed proportions, which is a characteristic of a fixed proportion production function.

If the Elasticity of Substitution of a Production Function Is