Bonus Assignment: Cobb Douglas I to Cobb Douglas II

Read the original post on Cobb Douglass II (the sequel). If you can convert Cobb Douglass I to Cobb Douglas II, then you’ll get an extra half-percentage point added to your total.

Specifically, I want you to convert this:Cobb Douglas to this: Cobb Douglas - The Sequel.

Leave a comment on the original post using your full name. The first one to get it right gets the bonus. Use (K/L)^alpha, etc. to represent fractions and Greek letters.

This exercise is certainly quite mathematical, and that’s why it’s a bonus. But for those of you who read the text, it’s a simple matter of knowing how to read (and write, of course).

Hint: See page 93 of your text book (Box 4.2).

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2 comments for “Bonus Assignment: Cobb Douglas I to Cobb Douglas II

  1. Mustafa Olomi
    February 12, 2008 at 11:47 am

    rewrite K/L as (K/Y) times (Y/L)
    Regroup like this: (K/Y)^a (Y/L)^a (E)^1-a

    Divede both sides by (Y/L)^a and raise both sides by (Y/L)^a

    Then you get Y/L = (K/Y)^a/1-a(E)

  2. Arnav
    February 12, 2008 at 12:11 pm

    i appreciate your enthusiasm mustafa, but the assignment is closed. you are correct, though.

    comments were to be posted on the original post, not this one.

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