Solved

The Exponents of a Cobb-Douglas Utility Function,U = C α\alpha M α\alpha

Question 86

Multiple Choice

The exponents of a Cobb-Douglas utility function,U = C α\alpha M α\alpha -1,represent:


A) the share of income devoted to that good.
B) the rate at which a consumer can trade one good for the other.
C) the quantity of each good that is demanded.
D) the amount of utility each good provides.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents