Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output, K is capital, L is labour, and A, a, and ß are positive constants. a) Is function (1) in linear form? Convert it into linear form if it is not.

Consider the following Cobb-Douglas production function: Y = AK“L® (1) where Y is aggregate output, K is capital, L is labour, and A, a, and ß are positive constants. a) Is function (1) in linear form? Convert it into linear form if it is not.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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Consider the following Cobb-Douglas production function:
Y = AKªL®
(1)
where Y is aggregate output, K is capital, L is labour, and A, a, and ß are positive constants.
a) Is function (1) in linear form? Convert it into linear form if it is not.

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