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The Cobb-Douglas Production Function Is: Q = 1

Question 14

Multiple Choice

The Cobb-Douglas production function is: Q = 1.4*L0.6*K0.5.What would be the percentage change in output (%?Q) if labor grows by 3.0% and capital is cut by 5.0%?


A) %?Q = + 3.0%
B) %?Q = + 5.0%
C) %?Q = - 0.70%
D) %?Q = - 2.50%
E) %?Q = - 5.0%

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