Session 7 | Reading 24 | LOS a    

3 cards

LO a: Explain the terms of the Cobb-Douglas production function and demonstrate how the function can be used to model growth in real output under the assumption of constant returns to scale.


 
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Created Jan 27, 2011
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lutfallah

 

 
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  Side A   Side B
1
The Cobb-Douglas function (CD) relates
 
real economic output to capital stock and labor as well as factor productivity.
2
The Cobb-Douglas function (CD)Y =
 
Y = AKαLβ
3
By applying natural logs and making other assumptions, it can be restated to predict changes...
 
http://www.proprofs.com/flashcards/cards.php?id=107311

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