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A two-input (using capital and labor) Cobb-Douglas production function takes the form: y = a 0 K a L b where K is capital and
A two-input (using capital and labor) Cobb-Douglas production function takes the form:
y = a0KaLb
where K is capital and L is labor.
(a) If a + b = 1, what happens to output if you increase both K and L by some multiple, m?
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