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Elasticity of Substitution (s) is defined as:

A. Percentage change in capital-labor ratio dividing by percentage change in

B. Percentage change in dividing by percentage change in capital-labor ratio

C. Percentage change in inputs dividing by percentage change in outputs

D. None of the above

Correct Answer :

A. Percentage change in capital-labor ratio dividing by percentage change in


Elasticity of Substitution (s) = %? (K/L) / %? }

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