Which of the following utility functions is a Cobb-Douglas? Group of answer choices U(x,y) = ln(x)...

Which of the following utility functions is a Cobb-Douglas?

Group of answer choices

U(x,y) = ln(x) + 4y

U(x,y) = 2x + 4y

U(x,y) = ln(x) + 4ln(y)

U(x,y) = min{x, 4y}

None of the above

Expert Solution

The Cobb-Douglas production function is a particular form of the production function. The basic form of the Cobb-Douglas production function is:

Q(L,K) = A L^aK^b

The returns to scale is measured by the sum of exponents of Cobb-Douglas production function i.e., a + b .

Cobb-Douglas production function can be extended by including more than two factors. For example, agricultural production is not only dependent on labour and capital used but also on the use of other inputs such as land, fertilizers, irrigation. Including these inputs in the Cobb-Douglas function .

Here all examples are either of perfect substitute or minimum function , so neither of them represents the cobb douglas production function .

Hence (E) part is a correct answer

Rahul Sunny answered 2 years ago

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