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en:cobb-douglas-output-elasticity [2016/01/02 14:58] federico |
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| ====== Cobb-Douglas Output Elasticity ====== | ====== Cobb-Douglas Output Elasticity ====== | ||
| - | The [[en:cobb-douglas-production-function|Cobb-Douglas]] Output Elasticity is constant and equal to α or β. | + | The [[en:cobb-douglas-production-function|Cobb-Douglas]] [[en:elasticity-of-production|Output Elasticity]] is constant and equal to α or β. |
| If the Cobb-Douglas production function is **Q(L,K) = A L<sup>β</sup>K<sup>α</sup>**, the output elasticity with respect to labor (L) is β and the output elasticity with respect to capital (K) is α. | If the Cobb-Douglas production function is **Q(L,K) = A L<sup>β</sup>K<sup>α</sup>**, the output elasticity with respect to labor (L) is β and the output elasticity with respect to capital (K) is α. | ||
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| It is noteworthy that both output elasticities are constant and greater than 0 and smaller than 1. | It is noteworthy that both output elasticities are constant and greater than 0 and smaller than 1. | ||
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| + | See Also: | ||
| + | [[Elasticity of Production]] | ||