The Cobb–Douglas production function is y ” za 1 zb 2 a ‘ 0, b ‘ 0 Show that MP1 ” ay/z1, MP2 ” by/z2 . What is the MRTS21? How does it vary with: (a) y; (b) z2 /z1? Draw the isoquant m

The Cobb–Douglas production function is

y ” za

1 zb

2 a ‘ 0, b ‘ 0

Show that MP1 ” ay/z1, MP2 ” by/z2 .

What is the MRTS21? How does it vary with: (a) y; (b) z2 /z1?

Draw the isoquant m