When Cobb-Douglas production function Q(L,K) = 8 and L=100, K=100, Find total cost of production.
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JNU SSS 2021 Question 6: Factor markets and income distribution
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When Cobb-Douglas production function Q(L,K) = 8 L⁰·³ K⁰·⁷ and L=100, K=100, Find total cost of production. (A) 800 (B) 980 (C) 1080 (D) 1180
Also written as: When Cobb-Douglas production function Q(L,K) = 8 L^(0.3) K^(0.7) and L=100, K=100, Find total cost of production.
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What this question tests
This question is on Distribution theory: factor shares, Euler's theorem and rent, part of Factor markets and income distribution in Microeconomics.
How output is divided among factors, and when payments to factors exactly exhaust output.
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