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 , 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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The constant elasticity cost function takes the form TC = aQS^bPS^c, where Q is quantity, P is price, and a, b, and c are coefficients. This function can be converted into a linear form using logarithms, making it useful for empirical work. Choices B, C, and D do not describe a constant elasticity cost function.

A Constant Elasticity Cost Function