In the Cobb-Douglas production function
,if a = 1/4,then:
A)capital's share of GDP is one-fourth.
B)labor's share of GDP is three-fourths.
C)capital's share of GDP is three-fourths.
D)labor's share of income is one-fourth.
E)Both a and b are correct.

Question

In the Cobb-Douglas production function 
,if a = 1/4,then:
A)capital's share of GDP is one-fourth. 
B)labor's share of GDP is three-fourths. 
C)capital's share of GDP is three-fourths. 
D)labor's share of income is one-fourth. 
E)Both a and b are correct.

Quizplus · Accepted Answer

The Answer of In the Cobb-Douglas production function 
,if a = 1/4,then:
A)capital's share of GDP is one-fourth. 
B)labor's share of GDP is three-fourths. 
C)capital's share of GDP is three-fourths. 
D)labor's share of income is one-fourth. 
E)Both a and b are correct.

In the Cobb-Douglas Production Function