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en:production-function [2013/10/22 10:20] federico |
en:production-function [2013/10/23 15:02] 200.123.219.188 [Cobb Douglas] |
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[[Production Function Examples]] | [[Production Function Examples]] | ||
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+ | ====== Production Function Examples===== | ||
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+ | //During all the examples, Q is the output quantity per time period and L and K are the inputs quantities per time period.// | ||
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+ | ==== Linear ==== | ||
+ | ''Q=aL'' | ||
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+ | ===== Diminishing Returns ===== | ||
+ | ''Q=aL<sup>b</sup> 0<b<1'' | ||
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+ | ===== Cobb Douglas ===== | ||
+ | ''Q=aL<sup>b</sup>K<sup>b</sup>'' | ||
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+ | See more about the [[Cobb-Douglas production function]]. | ||
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+ | ===== Perfect Substitutes ===== | ||
+ | ''Q=aL+bK'' | ||
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+ | ===== Fixed Proportions ===== | ||
+ | ''Q=min{aL,bK}'' | ||
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