With this utility function a utility-maximizing consumer will spend a proportion α of their budget on good X and a proportion β on good Y. When the Cobb–Douglas function is applied as a utility function the inputs, K and L, are replaced by the consumption levels of two types of good, say, X and Y. With this production function, a cost-minimizing firm will spend a proportion α of its total costs on capital and a proportion β on labour. The Cobb–Douglas production function has also been applied at the level of the individual firm. Remark 4.5 Next we give some diagrammatic representations for the CobbDouglas production functions with two inputs and one output in a three-dimensional space, for all the. If α + β = 1 this function has constant returns to scale: if K and L are each multiplied by any positive constant λ then Y will also be multiplied by λ. The generalized CobbDouglas production function has constant return to scale if and only if the corresponding CobbDouglas hypersurface is a Tzitzica hypersurface. Where A, α, and β are positive constants. According to the estimation of parameters, the Cobb-Douglas production function for dry season revealed that a 1 increase in the input of seeds would increase the total outputs by approximately 0. The Cobb–Douglas production function is then given by In this thesis we explored this function’s application in construction schedule crashing.
The function’s quantitative modeling of resource inputs and production outputs is appealing to the research domain of construction management. Denote aggregate output by Y, the input of capital by K, and the input of labour by L. Cobb-Douglas Production Function In economics, a production function represents the relationship between the output and the combination of factors, or inputs. Cobb-Douglas Production Function was widely used in economics and productivity studies across many sectors. A functional form, named after its originators, that is widely used in both theoretical economics and applied economics as both a production function and a utility function.
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