Question

Gwyneth owns a firm and wants to minimize the cost of producing output Q. Her production function is Q

Answer 1

The answer is "1".

Step-by-step explanation:

Some of the data is missing in the question, that will be defined in the attached file. please find it.

In the given EOS the C-D function:

`= [(d((K )/( L)))/(d \ MRTS) * (MRTS)/(((K)/(L)))]`

The MRTS value =
`(1)/(2) * (K-1)/(2L) * (1)/(4) * (1)/(4) * (K1)/(2L) - (3)/(4)`

`= (K)/(2L)`

Rearrange it

`\to (K )/( L) = 2 * MRTS \\\\ \to (d((K)/(L)))/(d(MRTS) )= 2\\\\`

Replace the values in formula elasticity:

`=2 * (( (K)/(2L)))/(((K)/(L))) \\\\ =2 * (K)/(2L) * (L)/(K) \\\\ =2 * (1)/(2) \\\\= 1`