b.) Cobb-Douglas. Assume the firm has a generalized Cobb-Douglas technology y = 0- x x, where 0 < a, ß & 0 is a parameter. Give a possible interpretation of the parameter 0. Outline the conditions that must be imposed on the parameters to ensure a solution to the profit maximization problem exists. 72. Assume the requested conditions are satisfied and a unique profit maximizing solution exists. How does the optimal choice of output, y, vary with the parameter 6? (Hint: don't solve the optimization problem explicitly; instead, try to use the general properties of the profit function to say something sensible.]

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