Friday, July 23, 2021

Application of Isoquant to Cobb-Douglas Production

 Let us consider a special case of Cobb-Douglas Production Function: 

The calculation and graphing of this production function have been done by using MS Excel:

Q=100*SQRT(2LK)

Labour (L)

Capital (K)

A

SQRT of L

SQRT of K

SQRT of 2

100*SQRT(2*L*K)

1

6

100

1

2.44949

1.414214

346

2

3

100

1.414214

1.732051

1.414214

346

3

2

100

1.732051

1.414214

1.414214

346

6

1

100

2.44949

1

1.414214

346


Capital (K)

6

346

490

600

693

775

849

5

316

447

548

632

707

775

4

283

400

490

566

632

693

3

245

346

424

490

548

600

2

200

283

346

400

447

490

1

141

200

245

283

316

346

0

1

2

3

4

5

6

Labour (L)

 

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