Cobb-Douglas Production Formula

​Cobb-Douglas Production Formula

Multivariable Function Applications​

Open Ended

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​Cobb-Douglas Production

​Primary Use

​Has been used to predict the amount of production of an item given parameters such as investment and work-hours.

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***You'll learn more about this in your mini-essay at the end***

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​For this formula, x represents "work hours" and y represent "capital invested", measured in the thousands. So if you invest $50,000 your y-value would be 50. The C and a values are typically given.

Multiple Choice

What does the 'x' represent in the Cobb-Douglas Formula?

• Benefits for workers

• Number of lunch breaks

• Hours Worked

• x-intercept

Multiple Choice

What does the 'y' represent in the Cobb-Douglas formula?

• Investment (measured in thousands)

• Number of machines in the production facility

• Investment (measured normally)

• Corn

​I've worked out some examples on the following slides, copy them into your notes, so you can practice these on your own and have some examples to follow.

Multiple Choice

A local zipper producer estimates its monthly production using a Cobb-Douglas calculation. If their employees work for a combine 2000 hours and $60,000 is invested, what is their expected production with C = 100 and an a-value of 0.4?

• Around 20,000 units

• Around 30,000 units

• Around 24,000 units

• Around 34,000 units

​Move on to practice set in Classroom