State the Cobb-Douglas Production Function. - Economics | Shaalaa.com
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Cobb-Douglas production function During the 1920 s, Charles Cobb and Paul Douglas modeled total production output P (of a firm, industry, or entire economy) as a function of labor hours involved x and capital invested y (which includes the monetary worth of all buildings and equipment). The Cobb-Douglas production function is given by P(x, y)=k x^α y^1-α where k and αare constants representative of a particular firm or economy. a. Show that a doubling of both labor and capital results in a dou
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