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.
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.8P
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![Consider the following Cobb-Douglas production function:
Y = AKªL®
(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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3127fffa-6167-4d6b-879a-65215add11cc%2F8c068dd9-c26f-420c-b5f0-7041952a5a01%2Funu2xf_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following Cobb-Douglas production function:
Y = AKªL®
(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.
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