Function is widely used in economic research

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Reference no: EM13770624

The production function : q = L

aKb

(0 < a, b < 1) is called a Cobb-Douglas production

function. This function is widely used in economic research. Using the function, show the following

statement in mathematical proof:

a. If a+b=1, a doubling of K and L will double q.

b. If a+b>1, a doubling of K and L yields more than double q.

c. If a+b<1, a doubling of K and L yields less than double q.

Reference no: EM13770624

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