Cobb-Douglas production function
A particular type of production function of the form:
where X1 X2 … Xn are quantities of the n factors of production and a0 a1 an. are parameters. It was used by the economists Cobb and Douglas in a path-breaking early piper which sought to explain the relative constancy of the shares of capital and labour in the national income; hence its name. This function, particularly in the speciaJ case where. n =·2 and al + a2 = 1, has some very useful properties and has been used extensively in economics, not only in the theory.of income distribution, hut also in the theory of the firm and the theory of economic growth.
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