Question
The 'Cobb-Douglas' production function is most closely
associated with which concept of national income distribution?Solution
The Cobb-Douglas production function takes the form Y = AL^αK^β, where Y is output, L is labor, K is capital, and α & β are output elasticities. Under the assumptions of perfect competition and profit maximization (where factors are paid their marginal product), a unique property emerges: α represents the share of total national income that is paid to labor (wages), and β represents the share paid to capital (profits/interest). This makes it a fundamental model for analyzing the functional distribution of income between the factors of production, labor and capital, and how their relative shares (α/β) might change over time.
In a mixture of 198 litres, the ratio of salt to sugar is 2:1. If ‘x’ litres of sugar is added to the mixture, such that the ratio of salt to sugar ...
Quantity of water in a 330 litres mixture (Milk + Water) is 30 litres less than the quantity of milk in it. Find the quantity of water to be mixed so t...
A trader mixes two kinds of wheat of 8 kg and 2 kg, costing Rs. 3 and Rs. 9 per kg, respectively. What is the cost price (in Rs.) of the mixture per kg?
- A mixture contains milk and water in the ratio of 8:5, respectively. If 260 ml of mixture is taken out and 80 ml of milk and 100 ml of water is added into ...
A mixture contains 60 litres milk and rest is water. When 30 litres milk and 18 litres water is added to the mixture, the ratio of milk to water become...
Milk costs Rs. 48 per litre. Water is free. In what ratio should water be mixed with milk so that the mixture can be sold at Rs. 48 per litre and still ...
255 ml of mixture contains milk and water in the ratio of 12:x respectively. If 40 ml of water and 50 ml of milk is added into it then ratio of milk to ...
In a blend of milk and water, the milk's quantity exceeds the water's by 37 ml. After 75% of this mixture is removed and 10.75 ml...
- An alloy consists of 38% aluminum, 32% copper, and 30% zinc. How much aluminum should be added to 60 kg of the alloy so that the new alloy contains 50% alu...
A mixture of 300 ml containing 50% milk and 50 % water. If ‘a’ ml of milk is added into the mixture the percentage of water reduced to 42(6/7) %. Fi...
