Question: Y5 Question 1* The generalized Cobb-Douglas production function is: Y=AKL6 O Question 1* The generalized Cobb-Douglas production function is: a) b) c) d) Determine the

Question 1* The generalized Cobb-Douglas production function is: Y=AK"L6 O

Question 1* The generalized Cobb-Douglas production function is: a) b) c) d) Determine the marginal product of labor and its rate of change. Comment. Is the Cobb-Douglas production function homogeneous? If so, of what degree? Is the marginal product of labor a homogeneous function? Comment. Is it possible that a production function has diminishing marginal products and at the same time constant or even increasing returns to scale? Question 2 Consider again the Cobb-Douglas production function given in question 2. Show that the parameter 6 is the elasticity of output with respect to labor input. Derive the elasticity both with and without logarithmic differentiation.

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