Asked by Prabhjot Bansal on Jun 17, 2024
Verified
Refer to Scenario 7.2. This production function is an example of which of the following types of production functions?
A) Cobb-Douglas
B) Leontief
C) Fixed proportions
D) Lagrange
E) none of the above
Cobb-Douglas
A mathematical function used in economic models to represent the relationship between two or more inputs and the resulting level of output.
Production Function
A mathematical representation of the relationship between inputs used in production and the output generated from those inputs.
Capital Employed
The total amount of capital used for the acquisition of profits by a firm or project, including the value of all assets employed in a business.
- Master the properties of production functions like Cobb-Douglas.
Verified Answer
KR
Katia RubioJun 21, 2024
Final Answer :
A
Explanation :
The production function Q = 4K1/2L1/2 exhibits characteristics of a Cobb-Douglas production function, which typically has inputs raised to a power (in this case, the exponents on K and L), indicating the output elasticity with respect to each input.
Learning Objectives
- Master the properties of production functions like Cobb-Douglas.