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.
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?
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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?
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