The Cobb-Douglas production function is y=z1αz2β, with α>0 and β>0. Show that MP1=αy/z1, MP2=βy/z2. What is the MRTS21?

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

The Cobb-Douglas production function is y=z1αz2β, with α>0 and β>0. Show that MP1=αy/z1, MP2=βy/z2. What is the MRTS21?

Post by answerhappygod »

The Cobb-Douglas production function is y=z1αz2β,
with α>0 and β>0.
Show that MP1=αy/z1, MP2=βy/z2.
What is the MRTS21?
How does it vary with: (a) y; (b) z2/z1.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”