The output of an economic system Q, subject to two inputs, such as labor L and capital K, is often modeled by the Cobb-Douglas production function 1 2 Q = CLKD. When a + b = 1, the case is called constant returns to scale. Suppose Q=7200, a = b= and c 18. Complete parts (a) and (b). 3' 3'

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
icon
Related questions
Question
The output of an economic system Q, subject to two inputs, such as labor L and capital K, is often modeled by the Cobb-Douglas production function
Q=cLakb. When a + b = 1, the case is called constant returns to scale. Suppose Q = 7200, a = b= and c = 18. Complete parts (a) and (b).
1
2
"
3
3
a. Find the rate of change of capital with respect to labor,
(Type an equation.)
...
"
dk
-. First substitute the given values of Q, a, b, and c into the production function.
dL
Transcribed Image Text:The output of an economic system Q, subject to two inputs, such as labor L and capital K, is often modeled by the Cobb-Douglas production function Q=cLakb. When a + b = 1, the case is called constant returns to scale. Suppose Q = 7200, a = b= and c = 18. Complete parts (a) and (b). 1 2 " 3 3 a. Find the rate of change of capital with respect to labor, (Type an equation.) ... " dk -. First substitute the given values of Q, a, b, and c into the production function. dL
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Similar questions
Recommended textbooks for you
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Calculus
ISBN:
9781319050740
Author:
Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:
W. H. Freeman
Precalculus
Precalculus
Calculus
ISBN:
9780135189405
Author:
Michael Sullivan
Publisher:
PEARSON
Calculus: Early Transcendental Functions
Calculus: Early Transcendental Functions
Calculus
ISBN:
9781337552516
Author:
Ron Larson, Bruce H. Edwards
Publisher:
Cengage Learning