For the Cobb-Douglas production function q (K, L) = AKL-a prove that it is subject to...

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For the Cobb-Douglas production function q (K, L) = AKL-a prove that it is subject to the three properties of linearly homogeneous production functions, i.e., 1. APL and APK are both function of the capital-labor ratio k alone. 2. MPL and MPK are both function of the capital-labor ratio k alone. 3. Euler theorem - if we pay for each input a price equal to its marginal product exactly, we get output, i.e., K.MPK + L. MPL = q For the Cobb-Douglas production function q (K, L) = AKL-a prove that it is subject to the three properties of linearly homogeneous production functions, i.e., 1. APL and APK are both function of the capital-labor ratio k alone. 2. MPL and MPK are both function of the capital-labor ratio k alone. 3. Euler theorem - if we pay for each input a price equal to its marginal product exactly, we get output, i.e., K.MPK + L. MPL = q

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To prove that the CobbDouglas production function qK L AKL1a is subject to the three properties of l... View the full answer