Every time the quantity of labor increases by one percent, output - TopicsExpress

Every time the quantity of labor increases by one percent, output increase by %. It is a constant, independent of the level of l. This would not generally be true, but it is true for the Cobb-Douglas. That these two elasticities are constant and one elasticity is one minus the other is quite restrictive. A very simple form for the production function implies very restrictive relationships between the inputs and the output.

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