In economics and econometrics, the Cobb-Douglas production function is a particular functional form ofne production function, widely used to represent the technological relationship between the amounts of twor more inputs (particularly physical capital and labor) and the amount of output that can be produced bynose inputs. The function they used to model production is defined by,P(L, K) = 6LªK!-awhere P is the total production (the monetary value of all goods produced in a year), L is the amountf labor (the total number of person-hours worked in a year), and K is the amount of capital invested (theonetary worth of all machinery, equipment, and buildings). Its domain is {(L, k)|L > 0, K > 0} because Lnd K represent labor and capital and are therefore never negative.Show that the Cobb-Douglas production function can be written asPP(L, K) = 6LªK1-a → InKLIn b+ a lnK

"A production function expresses the technological relationship between output produced and the…

In economics and econometrics, the Cobb-Douglas production function is a particular functional form of e production function, widely used to represent the technological relationship between the amounts of two : more inputs (particularly physical capital and labor) and the amount of output that can be produced by nose inputs. The function they used to model production is defined by, P(L, K) = 6LªK1-a where P is the total production (the monetary value of all goods produced in a year), L is the amount labor (the total number of person-hours worked in a year), and K is the amount of capital invested (the onetary worth of all machinery, equipment, and buildings). Its domain is {(L, k)|L > 0, K > 0} because L nd K represent labor and capital and are therefore never negative. Show that the Cobb-Douglas production function can be written as P = In b +a ln K L P(L, K) = ¿LªK!-a → In K

In economics and econometrics, the Cobb-Douglas production function is a particular functional form of e production function, widely used to represent the technological relationship between the amounts of two : more inputs (particularly physical capital and labor) and the amount of output that can be produced by nose inputs. The function they used to model production is defined by, P(L, K) = 6LªK1-a where P is the total production (the monetary value of all goods produced in a year), L is the amount labor (the total number of person-hours worked in a year), and K is the amount of capital invested (the onetary worth of all machinery, equipment, and buildings). Its domain is {(L, k)|L > 0, K > 0} because L nd K represent labor and capital and are therefore never negative. Show that the Cobb-Douglas production function can be written as P = In b +a ln K L P(L, K) = ¿LªK!-a → In K

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 9PA

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