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Respond to the question: Properties of CobbDouglas Production fu?

 01/21/2001 07:27 PM by Brandon; Pages of Nicholson's Microeconomic Theory
Thank you very much Rodrigo! I've read the pages in the test you recommended (well, it's high time...) The climbing analogy made the concept easier to understand. I know this forum relates to Game Theory more but I certainly hope

 12/18/2000 10:32 PM by Rodrigo; On Young's theorem and production functions
In words, this means: (1) An additional unit of K makes the MPL vary. Compute the amount of this variation. (2) An additional unit of L makes the MPK vary. Compute the amount of this variation. (3) Now, it just happens that both [View full text and thread]

 12/18/2000 03:55 AM by Brandon; Yes, I understand now
Thanks a lot Rodrigo! I understand now. If that were to be put into words, what would that mean? Does it mean that an additional unit of K would be just as efficient as a unit of L on the exact opposite end of the isoquant? [View full text and thread]

 12/12/2000 09:54 PM by Rodrigo; On a property of the Cobb-Douglas
Hi, Brandon: Any function with continuous second-order derivatives satisfy this property: their cross second-order derivatives are equal. Such functions may be called "smooth functions". The Cobb-Douglas production function is one of [View full text and thread]

 12/12/2000 10:17 AM by Brandon; Properties of Cobb-Douglas Production function
Hi! I came across this portion under the chapter of "Production function" which reads,

"An increase in labour input has the same impact on the marginal & average products of capital as does an increase in capital inputs on the marginal and average products of labour. The cross derivatives of the Cobb-Douglas function are symmetric."

I don't quite understand. As the marginal product of labour is defined as the change in total product with respect to a unit change in labour with K held constant, how would an increase in L has the same impact on the marginal product of capital then? Thank you! [Manage messages]