Question

Let the production function by Q=AL^a K^b. Find the elasticity of production with respect to labour (L). 

Answer 1

The elasticity of production with respect to labour (L) is:

$EL=\frac{MPL} {APL} =\frac {A×a×L^{a−1} K^{b} } {A×L^{a−1} K^{b} } =a.$