Output in a certain factory is given by the Cobb-Douglas production function where K is the capital
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Output in a certain factory is given by the Cobb-Douglas production function
where K is the capital in $1,000 and L is the size of the labor force, measured in worker-hours.
a. Use your calculator to obtain Q(K, L) for the values of K and L in this table:
b. Note that the output Q(277, 743) is doubled when K is doubled from 277 to 554 and L is doubled from 743 to 1,486. In a similar manner, verify that output is tripled when K and L are both tripled, and that output is halved when K and L are both halved. What do you think happens if K is doubled and L is halved? Verify your response with your calculator.
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Related Book For
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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