Question

Consider the production function:
$Q(K, L) = (2 \sqrt {K} + 3 \sqrt{L})^2$ where Q is the output, K is capital, and L is labour. If $\eta_K$ and $\eta_L$ denote the output elasticities with respect to capital and labour, respectively, then the value of ($\eta_K$ + $\eta_L$) is

• A. 2
• B. 1
• C. 4
• D. 0.5

Answer 1

Answer: (B)

1

Answer 2

The correct answer is (B): 1