# Questions tagged [cobb-douglas]

The Cobb-Douglas function is a commonly used functional form for a firm's production function or for consumers' utility, with a variety of convenient properties.

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### Derivation of demand function

Hello. I'm graduate student in Japan. This time, what I want to ask is how to solve the profit maximization problem using the image production function and derive the demand function. This ...
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### Optimizing Cobb-Douglas like functions

Economics isn't my home field, but I'm looking for references for a paper I'm working on and I'm hoping one of you can help. Are there many good references for optimizing a Cobb-Douglas like utility ...
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We have these following from the first order conditions: ${U_{LA} \over U_C} = w_A \to MRS_{C,LA}=w_A$ ${U_{LB} \over U_C} = w_B \to MRS_{C, LB}=w_B$ ${U_{LA} \over U_{LB}} = {w_A \over w_B} \to ... 0answers 956 views ### Given a standard Cobb-Douglas production function, how to estimate the output elasticity of labour and capital by country? Given a standard Cobb-Douglas production function: $$Y_t=(A_t L_t)^{\alpha} K_t^{1-\alpha}$$ Moreover, the production function has constant returns to scale: $$\alpha + (1-\alpha)=1$$ How to estimate ... 0answers 301 views ### Given Cobb-Douglas production functions for 2 factories (same owner), how will the owner produce$y$? So my question is this: A company owns two factories, A and B, each with the following production functions:$f_A(x_1,x_2)=x_1^{\alpha}x_2^{1-\alpha}f_B(x_1,x_2)=x_1^{\beta}x_2^{1-\beta}$Now ... 0answers 24 views ### Cobb-Douglas demand yields a zero marginal revenue, monopolies don't exist? From here and a pile of maths that I've done myself,$x_1 = \frac{a}{a+b}\frac{m}{p_1} \\ x_2= \frac{b}{a+b}\frac{m}{p_2}$This yields inverse demand equations, when you have numbers stand in for$...
Suppose that a competitive firm receives a price of $P$ for its output, and pays prices of w, r and v for its labor $(L)$, capital $(K)$ and natural resources $(R)$ inputs, respectively. The firm ...