1. Consider the Cobb-Douglas production function 1' = aclfasrzfa And the associated cost function r15 3 \":1\

1. In c Consider the Cobb-Douglas production function Y = ALI/3K2/3 And the associated cost function b. c(r;A) = A 21/3 Graph the cost function in the graph below for the value of A = 1 and A = 2. Please use the logarithmic scale, and indicate which cost curve is related to higher productivity. Inr What economic concept is related to the slope of the cost function? What would happen to the shape of the cost function if production firms have an easier time substituting capital for labor than the Cobb-Douglas function implies? (Flatter, steeper, more or less concave?)