A production function expressed as:

Or

Where A>0,0 <α<1 and β>-1,
where L = labour, K = capital, A, α, and β are three parameters, is called:

Correct option is A

· The given function is a Constant Elasticity Substitution (CES) function, which allows a constant elasticity of substitution between labour (L) and capital (K).
· The CES production function is a generalized form of the Cobb-Douglas production function.
Information Booster
· CES Function Properties:
· Elasticity of substitution (σ) remains constant.
· Allows flexibility in capital-labour substitution.
· Includes Cobb-Douglas as a special case when β=0\beta = 0β=0.
Additional Knowledg
· Cobb-Douglas Function (d):

· Has a variable elasticity of substitution.
· Leontief Function (c):
· Assumes fixed proportions of labour and capital.
· No substitution between inputs.