Cobb-Douglas Production Function | Formula, Equation & Example
6:58
Study.comRonald Price
Cobb-Douglas Production Function | Formula, Equation & Example
Learn the definition of a production function in economics, understand the definition of a Cobb-Douglas production function and its formula, and explore some examples of Cobb-Douglas production function.
412K viewsJun 6, 2017
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SOLVED: Suppose a utility function has the Cobb Douglas form with u(x,y) = x * ln(y).What is the total differential of the utility function and what is the MRS at any value of x and y?Write down the maximization problem that represents this person's choice.What are the first-order conditions for a maximum?Find the demand equations for x and y.
SOLVED: Suppose a utility function has the Cobb Douglas form with u(x,y) = x * ln(y).What is the total differential of the utility function and what is the MRS at any value of x and y?Write down the maximization problem that represents this person's choice.What are the first-order conditions for a maximum?Find the demand equations for x and y.
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In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Amos' utility is Ua=(Ga)^α(Hα)^1-α and Elise's is Uc=(Gc)^β(Hc)^1-β . What are their marginal rates of substitution? Between them, Amos and Elise own 120 units of G and 90 units of H . Thus, if Amos has Ga and Ha, Elise has Ge=120-Ga and He=90-Ha . Solve for their contract curve. | Numerade
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SOLVED: Suppose a utility function has the Cobb Douglas form with u(x,y) = x * ln(y).What is the total differential of the utility function and what is the MRS at any value of x and y?Write down the maximization problem that represents this person's choice.What are the first-order conditions for a maximum?Find the demand equations for x and y.
SOLVED: Suppose a utility function has the Cobb Douglas form with u…
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In a pure exchange economy with two goods, G and H, the two traders have Cobb-Douglas utility functions. Amos' utility is Ua=(Ga)^α(Hα)^1-α and Elise's is Uc=(Gc)^β(Hc)^1-β . What are their marginal rates of substitution? Between them, Amos and Elise own 120 units of G and 90 units of H . Thus, if Amos has Ga and Ha, Elise has Ge=120-Ga and He=90-Ha . Solve for their contract curve. | Numerade
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