Question: Demonstration.- 1. (12 points) The Cobb-Douglas production function is given by q = AKL' : (1) Mathematically prove that the marginal productivity of input /

Demonstration.-

1. (12 points) The Cobb-Douglas production function is given by q = AK"L' : (1) Mathematically prove that the marginal productivity of input / is homogeneous of degree a+b-1. (Hint: Show that Of((K, IL)/atK =1"of(K, L)/OK ) (2) Prove that MRTS will be the same on all isoquants along a ray through the origin

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

question 1 Imagine that the production function for tuna cans is given by q=6K + 4L, where q= output of tuna cans per hour K= Capital input per hour L=labour input per hour a.Assuming capital is...

tax Consider the market for apple juice. In this market, the supply curve is given by QS = 10PJ 5PA and the demand curve is given by QD = 100 15PJ + 10PT , where J denotes apple juice, A denotes...

cc this are the questions Let US be the home country and Canada be the foreign country. Suppose that Canada experiences a temporary decline in their real GDP. Assume all else is constant. Consider...

Attempt the following please; Univariate unconstrained maximization. (10 points) Consider the following maximization problem: max x f (x; x0) = exp((x x0)2) 1. Write down the first order conditions...

Demonstration microeconomics.- 6. (32 points) The aggregate production function in Solow (1957) was specified as: O = A(D)f(K, L). (1) (6 points) Derive the output elasticities of labor ( s, ) and...

Economics questions... . Suppose that a market is composed of two firms that simultaneously choose quantities. Firm 1 has 22 a cost function C1(q1) = q1^2. Firm 2 has a cost function C2(q2) =...

I. Which of the following is correct? a) The pivot of the budget line shows the substitution effect while a slope gives the income effect. b) The pivot of the budget line shows the substitution...

MANAGERIAL ECONOMICS In a Nutshell In this part you are going to jot down what you have learned BELOW. The said statement of yours could be in a form of concluding statements, arguments, or...

Answer the following 1. Solow model in continuous time. Consider the Solow model in continuous time with pro- duction function y = f(k) satisfying the usual properties, constant savings rate s,...

ANSWER THE FOLLOWING QUESTIONS 1. On Farmer Jones' farm, only honey is produced. There are two ways to make honey: with and without bees. A bucket of artificial honey, absolutely indistinguishable...

This is the balance sheet of a car company. Units are thousands. What is your assessment of it health as of 2021? Breakdown Total Assets Current Assets > Cash, Cash Equivalents & S.. > Receivables >...

Major League Soccer (MLS) was the exclusive Division I professional soccer league in the United States, as recognized by the U. S. Soccer Federation (USSF), the national soccer governing body. MLS...

Read and understand the constraints of ecosystems and natural environment in the future and select the correct answer below. Which statement is correct? i . Corporate businesses will be significantly...

Your boss tells you that your company has fewer followers than every other firm in your industry by a very large amount and that they saw a video where an expert explained how this is an issue....

2. In this chapter, the reader should reflect on the following concepts: historical reason, goal orientation, core values and top performance.

1. To understand how to set goals in a communication process

11. How often have you passed on to others this type of information, which you have filled in yourself? Never, then you should think again.