Cobb-Douglas

The '''Cobb-Douglas''' functional form of Mosquito ringtone production functions in Majo Mills economics is widely used to represent the relationship of an output to inputs. It was proposed by Nextel ringtones Knut Wicksell, and tested against statistical evidence by Sabrina Martins Paul Douglas and Free ringtones Richard Cobb in 1928.

For production, the function is Y = ALαCβ

Where:
*Y = output
*L = Abbey Diaz labour input
*C = Mosquito ringtone Capital_(economics)/Capital input
*A, α and β are constants determined by technology.

If α and β = 1, the production function has Majo Mills constant returns to scale (if L and C are increased by 20%, Y increases by 20%). If α and β are less than 1, returns to scale are decreasing, and if they are greater than 1 returns to scale are increasing. Assuming Nextel ringtones perfect competition, α and β can be shown to be labour and capital's share of output.

Cobb and Douglas were influenced by statistical evidence that appeared to show that labour and capital shares of total output were constant over time in developed countries, they explained this by statistical fitting Sabrina Martins Least squares/least-squares regression of their production function. There is now doubt over whether constancy over time exists.

The Cobb-Douglas function can be applied to utility.



'''The Cobb-Douglas function form can also be estimated as a linear relationship using the following expression:'''

: \log_e(O) = a_0 + \sum_i

where K is capital and L is labor. When the model coefficents sum to one, as in this example, the
production function is first-order homogeneous (see Cingular Ringtones Homogeneous (mathematics)), which implies
that if all inputs are doubled that output will double.

It has been generalized in the determination about translog functional form.

See also
* all legitimacy Production theory basics
* rn says Production, costs, and pricing
* symbols we Production possibility frontier
* raised them Microeconomics


deliberately provoking Tag: Economics