New answers tagged cobb-douglas
1
This
$$
a\ln q_1+b\ln q_2=q_1^aq_2^b
$$
is not true, only
$$
a\ln q_1+b\ln q_2=\ln(q_1^aq_2^b)
$$
is true.
$$
u(\lambda q_1, \lambda q_2)=\lambda u(q_1,q_2)
$$
is a sufficient, but not necessary condition for homotheticity of $u$. You can find more on this by searching for questions with the word homothetic on this site.
It is indeed true that
$$
\lambda^...
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