Show that the Cobb – Douglas production function f(x,,x, )= Axx , with 0 < a, B<1 and a + ß<1 is strictly concave for x, > 0, x, > 0.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter9: Production Functions
Section: Chapter Questions
Problem 9.5P
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Question 2
Show that the Cobb – Douglas production function f(x,,x,)= Ax“x , with
0 < a, B <1 and a + B<1 is strictly concave for x, > 0, x, > 0.
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Transcribed Image Text:Question 2 Show that the Cobb – Douglas production function f(x,,x,)= Ax“x , with 0 < a, B <1 and a + B<1 is strictly concave for x, > 0, x, > 0. -
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