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In economics, a production model is a mathematical relationship between the output of a company or a country and the labor and capital equipment required to produce that output. Much of the pioneering work in the field of production models occurred in the 19205 when Paul Douglas of the University of Chicago and his collaborator Charles Cobb proposed that the output P can be expressed in terms of the labor L and the capital equipment K by an equation of the form
where c is a constant of proportionality and
(a) Consider the Cobb-Douglas production model given by the formula
(b) Use a graphing utility to make a more extensive contour plot of the model.
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Calculus: Early Transcendentals, Enhanced Etext
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- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage