The Primary Purpose of the Cobb-Douglas Power Function Is To

question 27

Multiple Choice

The primary purpose of the Cobb-Douglas power function is to:

• A) allow one to make estimates of cost-output relationships
• B) allow one to make predictions about a resulting increase in output for a given increase in the inputs
• C) aid one in gaining accurate empirical values for economic variables
• D) calculate a short-run linear total cost function
• E) a and b