The production function
q = Ka Lb
Where 0 ≤ a, b ≤ 1 is called a Cobb-Douglas production function. This function is widely used in economic research. Using the function, show the following:
a. The production function in Equation is a special case of the Cobb-Douglas.
Hamburgers per hour = q = 10 √KL
b. If a + b = 1, a doubling of K and L will double q.
c. If a + b < 1, a doubling of K and L will less than double q.
d. If a + b > 1, a doubling of K and L will more than double q.
e. Using the results from part b through part d, what can you say about the returns to scale exhibited by the Cobb-Douglas function?