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A characterization of CES production functions having constant return to scale in microeconomics

Xiaoshu Wang


It is well known that the production functions are a key concept both in microeconomics and macroeconomics, they being used to model how a firm, an industry, or an entire economy, combines inputs to produce outputs. There are two well-known production functions in economics, namely the Cobb-Douglas and the CES productions functions. In this paper, we give a simple characterization of CES production functions, by studying geometric properties of their associated graph surfaces. We show that the CES production function has constant return to scale if and only if the corresponding surface has constant Gauss-Kronecker curvature.


production function; production surface; Gauss-Kronecker curvature.

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