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?
Posted: Mon Apr 18, 2022 9:15 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?
How does it vary with: (a) y; (b) z2/z1.
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.