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whatis the differences between cobb-Douglass and leontief production technology

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closed as off-topic by Giskard, Theoretical Economist, optimal control, Alecos Papadopoulos, emeryville Jan 8 '17 at 18:36

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "This question does not meet the standards for homework questions as spelled out in the relevant meta posts. For more information, see our policy on homework question and the general FAQ." – Giskard, Theoretical Economist, optimal control, Alecos Papadopoulos, emeryville

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What do you mean by "what is the difference"? Please clarify. These are just different production functions.

Suppose there are two different inputs $A$ and $B$.

The Cobb-Douglas production function is given by $$A^\alpha B^\beta.$$ You may think of $A$ and $B$ as capital and labor.

The Leontief production function is given by $$\min \{ A, B\}.$$ You may think of $A$ and $B$ as number of left and right shoes. If you have 7 left shoes and 3 right shoes, you have 3 pairs of shoes. Or let $A$ be "number of wheels divided by four and rounded down" and let $B$ be "number of car bodies" such that you can produce 5 cars with 7 car bodies and 21 wheels.

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    $\begingroup$ Well, clearly the difference in this case must be $A^\alpha B^\beta - \min \{ A, B \}$. $\endgroup$ – Theoretical Economist Jan 5 '17 at 20:39
  • $\begingroup$ I briefly thought about making such a comment myself, but found it too cheeky - hat tip to you :) $\endgroup$ – Bayesian Jan 5 '17 at 20:44
  • $\begingroup$ As a unifying perspective, one could mention that both are limiting cases of the C.E.S. production function, see for example economics.stackexchange.com/a/399/61 $\endgroup$ – Alecos Papadopoulos Jan 6 '17 at 17:25

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