Which of the following profit functions exhibits a Cobb-Douglas production function? A)$\pi$ = P x K^0.75L^0.50 - 20L - 35K. B)$\pi$ = P x min(2L, 5K) - 20L - 35K. C)$\pi$ = P x (3K + 4L) - 20L - 35K. D)$\pi$ = P x (3K^0.5 + 4L^0.5) ^1/0.2 - 20L - 35K.

Question

Quizplus · Accepted Answer

A Cobb-Douglas production function is characterized by a multiplicative form with exponents on the inputs, typically represented as $K^aL^b$. Option A fits this form with exponents on K and L.

Which of the Following Profit Functions Exhibits a Cobb-Douglas Production π\piπ

Which of the Following Profit Functions Exhibits a Cobb-Douglas Production $\pi$