Cobb-Douglas Production Function Calculator
Cobb-Douglas Production Function Calculator helps calculating the quantity of products, the marginal product of Labor and the marginal product of capital, given Cobb-Douglas Production Function
What is Cobb-Douglas Production Function?
In economics, a production function represents the relationship between the output and the combination of factors, or inputs, used to obtain it.
The Cobb-Douglas production function is a particular form of the production function. It is widely used because it has many attractive characteristics.
The Formula of Cobb-Douglas production function
The basic form of the Cobb-Douglas production function is as follows:
Q(L,K) = A Lβ Kα
Where:
Q is the quantity of products.
A is a positive constant (Called Total Factor Productivity).
L is the quantity of labor.
K is the quantity of capital.
α is the output elasticity of capital.
β is the output elasticity of labor.
α and β are constants between 0 and 1.