In economics and econometrics, the Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs (particularly physical capital and labor) and the amount of output that can be produced by ...
How do you calculate Cobb-Douglas production function?
The Cobb-Douglas production function formula for a single good with two factors of production is expressed as following: Y = A * Lᵝ * Kᵅ , this production function equation is the basis of our Cobb-Douglas production function calculator, where: Y is the total production or output of goods.
What are the main properties of the Cobb-Douglas production function?
Properties of the Cobb-Douglas Production Function:
- Properties of Cobb-Douglas Production Function, Homogeneous of Degree One:
- Q = ALα K1, 0 < α < 1 (... ...
- ⇒APL = g (K/L) [... ...
- ⇒ MPL < APL (... ...
- [... ...
- [... ...
- Since rL, rK, α = constant and the power of Land K = 1, equation (8.118) is a linear equation.
