Monday
December 22, 2014

Homework Help: economic - emergency

Posted by ellen on Wednesday, September 27, 2006 at 10:48am.

Question concerning production function - Cobb douglas. Given is:
y=(0,2K-1 + 0,8L-1)-1
If wk = wL =1, what will k and L be?
Now suppose again:
y=(0,2k-1 + 0,8L-1)-1 and
z=K1/3*L2/3. Is product y or z always more demanding to capitals (in case of labour)? if not, find where % of wL/wk is changing in price.
Notes: -1 after K and L is square and also -1 after ()and 1/3 and 2/3


Im sorry, but I dont understand your notation. You say -1 means "square". However, what does 0,2K-1 mean?
Is it "2 times (K-squared)"?

If so, your first equation becomes y=[2*(K)^2 + 8*(L)^2]^2. Here, again, I'm confused. With the outer squared term, you get one beast of a production function, requiring more calculas than I can remember. Without the outer squared term you get a production function that is, unusual but not unheard of in teaching economics, and mathmatically tractable. (Or it could be that I am missing something).

BTW, the traditional cobb-douglas is your z-equation.


Sorry my english but its root not squared, sorry for this problem but I'm still have problem with this math

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics Help pls - Suppose you are given the following production function: , ...
eceonomic - The isoquant line is described on this forms: a)y=[x1/2 + x1/2]2 (1/...
Econoics - Cobb-Douglas Production function Y=60K^1/3 L^2/3 If K=64 L=8 ...
Econometric -SAS - I am having trouble figuring out the correct code. I am ...
Macroeconomics - Economists have found that a good approximation of value added ...
Economics - Consider the production function Q = 20K 1/2 L 1/2. The firm ...
calculus word problem - A company has a Cobb-Douglas production function f(x,y...
Managerial Economics - I'm not sure I have the formulas correct for this problem...
Micro Economics - Briefly explain the following: (a)Economic cost and accounting...
ECON - PLEASE CHECK AND CORRECT MY ANSWERS!!!! MRTS = marginal rate of technical...

Search
Members