How about the more interesting CES production function AK, LP= YaK+ lapa Again, as long as this is CRS, we can only do cost minimization not profit maximization This gives us r= Vaka? Yaka+ lApa? W= VbLa? Yaka+bLap K=Li ar from which L b W)12a ?1 R +bio K=(a+b需(最)市)How about the more interesting CES production function fÝK,LÞ = ÝaKa + bLa Þ 1 a Again, as long as this is CRS, we can only do cost minimization not profit maximization. This gives us R = VaKa?1 ÝaKa + bLa Þ 1 a ?1 W = VbL a?1 ÝaKa + bLa Þ 1 a ?1 or K = L aW bR 1 1?a , from which L = a 1 1?a b ?a 1?a W R a 1?a + b ? 1 a Q K = a + b 1 1?a a ?a 1?a R W a 1?a ? 1 a Q