Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output, K is capital, L is labour, and A, a, and ß are positive constants. a) Is function (1) in linear form? Convert it into linear form if it is not.
Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output, K is capital, L is labour, and A, a, and ß are positive constants. a) Is function (1) in linear form? Convert it into linear form if it is not.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 7E
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