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en:cobb-douglas-output-elasticity

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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 Both sides previous revision Previous revision 2017/08/31 14:36 federico 2017/08/18 20:16 federico 2017/08/18 20:05 federico 2016/01/02 14:58 federico 2016/01/02 14:57 federico 2016/01/02 14:56 federico 2016/01/02 14:55 federico 2016/01/02 14:54 federico 2016/01/02 14:54 federico 2016/01/02 14:53 federico created 2017/08/31 14:36 federico 2017/08/18 20:16 federico 2017/08/18 20:05 federico 2016/01/02 14:58 federico 2016/01/02 14:57 federico 2016/01/02 14:56 federico 2016/01/02 14:55 federico 2016/01/02 14:54 federico 2016/01/02 14:54 federico 2016/01/02 14:53 federico created Line 16: Line 16: ​ 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)​ K<​sup>​α​ ] / [ A L<​sup>​β​ K<​sup>​α​ / L ] = [ Aβ L<​sup>​(β-1)​ K<​sup>​α​ ] / [ A L<​sup>​β​ K<​sup>​α​ / L ] = [ Aβ L<​sup>​(β-1)​ K<​sup>​α​ ] / [ A L<​sup>​(β-1)​ K<​sup>​α​ ] = [ Aβ L<​sup>​(β-1)​ K<​sup>​α​ ] / [ A L<​sup>​(β-1)​ K<​sup>​α​ ] = β = β - ​ + 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.