1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ede4ka [16]
3 years ago
15

The cob Douglas production function is given by Q(K,L)=AK^1.4*L^1.6

Business
1 answer:
Alexeev081 [22]3 years ago
8 0

Part a) The Cob Douglas production function is given as:

Q(K,L)=AK^{1.4} L^ {1.6 } .

To show that this function is homogeneous with degree 3, we introduce be a parameter, t.

Q(tK,tL)=A(tK)^{1.4} (tL)^ {1.6 } .

Using properties of exponents, we on tinder:

Q(tK,tL)=At^{1.4}K^{1.4} t^ {1.6 }L^ {1.6 } .

This implies that:

Q(tK,tL)=t^{1.4} \times t^ {1.6 }(AK^{1.4} L^ {1.6 } )

Q(tK,tL)=t^{1.4 + 1.6}(AK^{1.4} L^ {1.6 } )

Simplify the exponent of t to get;

Q(tK,tL)=t^{3}(AK^{1.4} L^ {1.6 } )

Hence the function is homogeneous with degree, 3

Part b) To verify Euler's Theorem, we must show that:

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L}=3AK^{1.4}L^{1.6}

Verifying from the left:

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =K(1.4AK^{0.4} L^{1.6}) + L(1.6AK^{1.4} L^{0.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =1.4(AK^{1.4} L^{1.6}) + 1.6(AK^{1.4} L^{1.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =(1.4 +  1.6)(AK^{1.4} L^{1.6})

K\frac{\partial Q}{\partial \: K}+L\frac{\partial Q}{\partial \: L} =3(AK^{1.4} L^{1.6})

Q•E•D

You might be interested in
What are the reasons for having internal controls that facilitate ethical behavior?
givi [52]

Answer:

Mostly Preventive Controls  and feedback Controls

Explanation:

For this case is important to conduct preventive and feedback controls.

The definition of preventive control is "Controls that are used to keep a loss or an error from occurring". And is improtant to do these controls continuosly in order to ensure that the ethical behavior is accomplished by all the people analyzed.

The definition of feed back controls is "a process that owners and manager uses to evaluate if their teams meet the stated goals at the end of a production process"

And for this case these two controls are so important when we want to facilitate check ethical behavior since the conduct is something that needs to be measured in all the time in order to ensure the condition for any employee.

5 0
3 years ago
Luis received his account statement. He needs to make sure the balance in his checkbook register is correct. To reconcile his ch
Luden [163]
<span> I would say to add all of the transactions together</span>
8 0
3 years ago
Read 2 more answers
In a planned economy, prices of commodities are controlled by _________.
AnnZ [28]
<h3>Answer:</h3>

C. The government

<h3>Explanation:</h3>

Vocabulary

First, it is important to define the key terms in the question and answers.

  • Planned Economy- A planned economy is an economy where the investments and capital are allocated by the government.
  • Commodities - Commodities are economic goods that have real value due to their real-life usefulness (like lumber) or rarity (like gold).

How Planned Economies Work

As its name suggests, a planned economy plans the economy out and the price of goods within the markets. These plans are created by the government. This means that private businesses, consumers, and supply/demand do not control prices. Only the government can do that because the government has full control of planned economies. This is the reason that planned economies are also called command economies because the economy is commanded by the government.

5 0
2 years ago
Maria, a banking executive, gives a job candidate a detailed interview​ and a walking tour of the facility. By sharing her time
Elis [28]

Answer:

Yes

Explanation:

Maria is giving a non-verbal message for his possible selection for the job by allowing him a tour of the facility and taking a detailed interview.

3 0
3 years ago
What is one thing the government does as it enforces consumer-protection
jasenka [17]

Answer: B: test products such as drugs and automobiles for safety

Explanation: âpex learning

3 0
3 years ago
Other questions:
  • Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining foun
    11·1 answer
  • The present value of an ordinary annuity is:
    11·1 answer
  • Which gland empties directly into the mouth?
    11·1 answer
  • In a period of steadily rising prices (meaning the cost to purchase inventory is increasing over time), what would be the implic
    12·1 answer
  • Linburgh Inc manufactures model airplanes and repair kits. The planes account for 80% of the sales mix, and the kits the remaind
    6·1 answer
  • That afternoon, you meet with the owners privately to discuss the data you received. Which of the factors analyzed do you think
    6·1 answer
  • Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond
    14·1 answer
  • Currently, the spot exchange rate is $0.85/A$ and the one-year forward exchange rate is $0.81/A$. One-year interest is 3.5% in t
    14·1 answer
  • What is opportunity cost?
    5·1 answer
  • Pierce company's break-even point is 23,000 units. its product sells for $33 and has a $14 variable cost per unit. what is the c
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!