Consider the cobb-Douglas production function f ( x , y ) = 20 x 1 3 y 2 3 . Compute f ( 8 , 1 ) , f ( 1 , 27 ) and f ( 8 , 27 ) . Show that, for any positive constant k , f ( 8 k , 27 k ) = k f ( 8 , 27 ) .
Consider the cobb-Douglas production function f ( x , y ) = 20 x 1 3 y 2 3 . Compute f ( 8 , 1 ) , f ( 1 , 27 ) and f ( 8 , 27 ) . Show that, for any positive constant k , f ( 8 k , 27 k ) = k f ( 8 , 27 ) .
Solution Summary: The author explains how the Cobb-Douglas production function is f(x,y)=20x13y
Consider the cobb-Douglas production function
f
(
x
,
y
)
=
20
x
1
3
y
2
3
. Compute
f
(
8
,
1
)
,
f
(
1
,
27
)
and
f
(
8
,
27
)
. Show that, for any positive constant
k
,
f
(
8
k
,
27
k
)
=
k
f
(
8
,
27
)
.
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