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Author Question: The Cobb-Douglas production function is: Q = 1.4L0.6K0.5 . What would be the percentage change in ... (Read 110 times)

CQXA

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on: Jul 1, 2018
The Cobb-Douglas production function is: Q = 1.4L0.6K0.5 . What would be the percentage change in output (?Q) if labor grows by 3.0 and capital is cut by 5.0? HINT: ?Q = (EL  ?L) + (EK  ?K)
 a. ?Q = + 3.0
  b. ?Q = + 5.0
  c. ?Q = - 0.70
  d. ?Q = - 2.50
  e. ?Q = - 5.0

Question 2

What are the different methods to measure industry concentration?
 a. Four-firm concentration ratio.
  b. HHI index.
  c. Total output
  d. a and b only


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jaymee143

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Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

d


CQXA

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

DylanD1323

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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