Te cobb-douglas production function is given by y , Ask an Expert

Economics

The Cobb-Douglas production function is given by: Y = AK^(α)L^(1−α) where 0 < α < 1.

a) Define A, K, and L

b) What does it mean that Y is proportional to A?

c) What does it mean that the marginal product of capital (MPK) and the marginal product of labor (MPL) are greater than zero? Show that the marginal products are positive in the Cobb-Douglas case.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707574

Have any Question?Write your Review or question?

Related Questions in Business Economics

Last years budget for the legislative branch of a certain

Last years budget for the legislative branch of a certain government was 4938 million, and this year was 5320 million. Consider last year budget of 4938 million to be the reference value. 1. What will the absolute change ...

We went over this problem in class but i dont understand

We went over this problem in class but I don't understand what exactly the professor did, so could someone explain step by step how to approach a problem like this? I have a homework assignment with problems similar to t ...

A student raises her hand in class and states i can legally

A student raises her hand in class and states, "I can legally copy any DVD I get from Netflix because Netflix purchased the DVD and the copyright only applies to the company who purchased the product." Explain whether th ...

A us electronics rm is considering moving its production to

A U.S. electronics ?rm is considering moving its production to a plant in Mexico. Its estimated production function is q = L0.5K0.5. In the U.S., the wage, w is ten dollars, and the cost of capital, r is also ten dollars ...

Research on the web ideas for small businesses for students

Research on the web ideas for small businesses for students. Describe at least three different ideas and include what for of business ownership you would use to structure each business.

Is it possible to have no or very small collinearity and

Is it possible to have no (or very small) collinearity and correlation between variables, yet have the same R squared and Adjusted R squared values?

Coach steroid likes his players to be big fast and obedient

Coach Steroid likes his players to be big, fast, and obedient. If player A is better than player B in two of these three characteristics, Steroid will prefer A to B . Three players try out for quarterback. Wilbur ...

From a deontological ethical framework construct an

From a deontological ethical framework, construct an argument either in favour of a minimum wage or against it.

What is the central limit theorem why does it make the use

What is the Central Limit Theorem? Why does it make the use of the common inferential tools possible even if the raw data is not distributed normally?

Why would the australian government debt be consider not

Why would the Australian government debt be consider not too high?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert