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Which of the following profit functions exhibits a Cobb-Douglas production function? π = P × K0.75L0.50...

Which of the following profit functions exhibits a Cobb-Douglas production function?

π = P × K0.75L0.50 - 20L - 35K

π = P × min(2L, 5K) - 20L - 35K

π = P × (3K + 4L) - 20L - 35K

π = P × (3K0.5 + 4L0.5) 1/0.2 - 20L - 35K

Variable factors of production are the inputs that a manager:

may adjust in order to alter sales.

may adjust in order to alter production.

cannot adjust in the short run.

cannot adjust in the long run.

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Answer #1

1. = P (K0.75 L0.50) - 20L - 35K is the profit function exhibits Cobb-Douglas production function. Because Cobb-douglas production function is in the form Q= Ka Lb. And Here in profit function ,it is represented in that way , in total revenue side. Hence,option(A) is correct.

2. Variable factors of production are the inputs that a manager may adjust in order to alter production. Hence,option(B) is correct.

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