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    Macroeconomics Study Set 38
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    Exam 4: A Model of Production
  5. Question
    In the Cobb-Douglas Production Function , What Do\(\lt\)
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In the Cobb-Douglas Production Function
, What Do <\lt<

Question 30

Question 30

Essay

In the Cobb-Douglas production function  In the Cobb-Douglas production function    , what do a   \lt 1 and b =1 - a reflect? Show how you derive your answer.
, what do a <\lt< 1 and b =1 - a reflect? Show how you derive your answer.

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a is the share of total national income ...

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