Cobb Douglas Production Function and Euler Theorem | Micro Economics | Ecoholics

The Cobb-Douglas production function is based on the empirical study of the American manufacturing industry made by Paul H. Douglas and C.W. Cobb. It is a linear homogeneous production function of degree one which takes into account two inputs, labour and capital, for the entire output of the .manufacturing industry.

Euler’s theorem states that when all factors of production are increased in a given
proportion, the resulting output will also increase in a given proportion, provided each
factors of production is paid the value of its marginal product and the total output is just
exhausted

According to Euler theorem, total output Q is exhausted by the distributive shares of all factors when each factor is paid equal to its marginal physical product.

Ecoholics is the largest platform for economics.

Download our app: http://ecoholics.in/mobile-app/

Visit our website for further information and resources: http://ecoholics.in/

To Subscribe for Courses - https://subscription.ecoholics.in/

Reach out to us on Whatsapp for further information: https://wa.me/917880107880

If you’re preparing for competitive exams like UPSC IES, RBI DPER or UGC NET then Ecoholics is the one-stop destination for all your learning needs. Study economics the smart way and get an in-depth understanding of this dynamic subject with our holistic approach. Our team of expert faculties help you polish your knowledge and provides you with one-on-one mentorship and doubt-clearing sessions, so you leave no stone unturned when it comes to your preparation. By signing up with us, you can access our live classes, video lectures, test series and get the hard copy of study material delivered to your doorstep, so your preparation never hits a bump!

Follow our social media handles to stay updated on all things economics.

Follow Ecoholics on Twitter-   / ecoholics_in  
Follow Ecoholics Facebook Group -   / 41907.  .
Follow Ecoholics Facebook Page -   / ecoholics8  
Follow Ecoholics on Instagram:   / ecoholics.in  
Follow Ecoholics on Telegram: https://t.me/ecoholicsbysanat

Become a Member of Largest Community of Economics: https://ecoholics.in/become-a-member/

#cobb #eulerstheorem #productionfunction #economics #economic #economists #upsc #rbi #indianeconomicsservice #ias #iitjam #gateeconomics #ugcnet #ugc #jrf #economy #unionpublicservicecomission #ignou #dse #jnu #maentrance #pgentrance