1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Economics: Elasticity of substitution between capital and labor

  1. Aug 9, 2012 #1
    1. The problem statement, all variables and given/known data
    Am I right or wrong on the following?

    The more capital is needed to replace one unit of labor to attain the same production level, the lower the elasticity of substitution between capital and labor.

    It can measure how productive the capital in question is, and/or how much has been invested given the condition of diminishing returns.


    This is the way I understood this concept. However, I'm not completely sure that my understanding of it is right. If it isn't, please tell me.

    2. Relevant equations
    -


    3. The attempt at a solution
    Google
     
  2. jcsd
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Can you offer guidance or do you also need help?
Draft saved Draft deleted



Similar Discussions: Economics: Elasticity of substitution between capital and labor
  1. Electricity economics (Replies: 0)

Loading...