Mathematics, 19.03.2021 18:40 rosanaboyd7
The Cobb-Douglas production model is a function that relates production outputs with a combination of different inputs. Agricultural data from 44 countries around the world, concerning agricultural production Q, labor L, capital K, fertilizer F, and hectares of arable land H, can be used to create an agricultural production model for countries using a Cobb-Douglas function given by
Q= 3.41 L^0.266 .K^2.06 F^0.299.H^1.41
The exponents in the Cobb-Douglas model are called elasticities. Find the percentage increment in production if a country has a 1% increase in Labor.
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