Question

Cobb douglas production function as a special case of ces function

Answer 1

"A famous two factor function was invented by Cobb and Douglas in 1928, which is being called as Cobb-Douglas production function.

This function is used describe distribution of national income with help of production functions. It can be given as;

Y=BL^(k ) C^(1-k)

Here, L is the labour input, C is the capital input and B is the total factor productivity and total production.

The generalisation of this function is the CES production function and both these functions are homogeneous production functions.

"