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en:cobb-douglas-output-elasticity [2017/08/18 20:16] federico |
en:cobb-douglas-output-elasticity [2017/08/31 14:36] (current) federico |
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| Now we have the marginal product divided by the average product. Applying the Cobb-Douglas production function: | Now we have the marginal product divided by the average product. Applying the Cobb-Douglas production function: | ||
| - | <code> | + | |
| = [ Aβ L<sup>(β-1)</sup> K<sup>α</sup> ] / [ A L<sup>β</sup> K<sup>α</sup> / L ] | = [ Aβ L<sup>(β-1)</sup> K<sup>α</sup> ] / [ A L<sup>β</sup> K<sup>α</sup> / L ] | ||
| = [ Aβ L<sup>(β-1)</sup> K<sup>α</sup> ] / [ A L<sup>(β-1)</sup> K<sup>α</sup> ] | = [ Aβ L<sup>(β-1)</sup> K<sup>α</sup> ] / [ A L<sup>(β-1)</sup> K<sup>α</sup> ] | ||
| = β | = β | ||
| - | </code> | + | |
| The same applies to the Cobb Douglas output elasticity with respect to capital. | The same applies to the Cobb Douglas output elasticity with respect to capital. | ||