The Elasticity of Substitution and the Limiting Behavior of Marginal Products

H. Petith

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: A two factor production function with a variable elasticity of substitution is considered. The note describes the relation between the elasticity and the behavior of the marginal products and the output per unit input as the factor ratio approaches zero or infinity.

Keywords: ELASTICITY; SUBSTITUTION EFFECT (search for similar items in EconPapers)
JEL-codes: D20 D24 D29 (search for similar items in EconPapers)
Pages: 12 pages
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:339.96

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