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| We can see that as we keep adding robots, the difference in the quantity produced between the diminishing returns example and the linear example keeps growing. | We can see that as we keep adding robots, the difference in the quantity produced between the diminishing returns example and the linear example keeps growing. | ||
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| + | ===== Example 4: CES Production Function ===== | ||
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| + | This production function has, as the name says, a constant elasticity of subsitution. An example of this production function, using two inputs is: | ||
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| + | Q = F (a * K<sup>α</sup> + (1 - a) L <sup>α</sup>)<sup>1/a</sup> | ||
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