Determine the output expansion path (equation) for a Cobb-Douglas prod

Determine the output expansion path (equation) for a Cobb-Douglas production function f(L,K) = 10LaK1-a. How does the shape of the output expansion path change as “a” changes?

What will be an ideal response?

 

ANSWER

Using the MRTS = w/r:
aK/(1 – a)L = w/r K/L = (1 – a)w/ar
As “a” increases, the output path gets flatter.

 

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