The Cobb-Douglas Production Function Is: Q = 1

question 14

Multiple Choice

The Cobb-Douglas production function is: Q = 1.4*L^0.6*K^0.5.What would be the percentage change in output (%?Q) if labor grows by 3.0% and capital is cut by 5.0%?

• A) %?Q = + 3.0%
• B) %?Q = + 5.0%
• C) %?Q = - 0.70%
• D) %?Q = - 2.50%
• E) %?Q = - 5.0%

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Definitions:

Repetitive Tasks

Actions or operations that are performed over and over again, often automated in software applications to save time and reduce errors.

Automated Vehicles

Vehicles equipped with technology that allows them to navigate and operate without human control.

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Global Positioning System, a satellite-based navigation system that provides location and time information in all weather conditions, anywhere on or near the Earth.

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Unmanned aerial vehicles (UAVs) controlled remotely or autonomously, used for various purposes including surveillance, photography, and delivery.