Cobb-Douglas Function

Mathematical
Definition Representation
Significance
In economics, the Cobb–Douglas
production function is a particular
functional form of the production 𝑸= 𝑨∗ 𝑳 𝜶 ∗ 𝑲 𝜷
function, widely used to represent
the technological relationship Where,
between the amounts of two or Q = total output produced,
more inputs (particularly physical L = Labour input,
capital and labor) and the amount K = capital input,
of output that can be produced by A = total factor productivity,
those inputs. the output elasticities of capital and labor 

Here, Marginal Product of

α + β < 1, return to scale is decreasing Capital and Labour can be
α + β > 1, return to scale is increasing found using this equation.
α + β < 1, return to scale is constant