Cobb- Douglas Production
Function
&
Returns to Scale
(Euler’s Theorem)
WITH ABAYOMI
ON LEARN ECONOMICS WITH EASE
, Euler’s Theorem
If is a continuous and differentiable homogeneous function of degree ,
then
Given a differentiable homogeneous function of a specified degree, Eul
theorem requires the weighted sum of the first partials of the function to
be equal to the original function times its degree of homogeneity.
Function
&
Returns to Scale
(Euler’s Theorem)
WITH ABAYOMI
ON LEARN ECONOMICS WITH EASE
, Euler’s Theorem
If is a continuous and differentiable homogeneous function of degree ,
then
Given a differentiable homogeneous function of a specified degree, Eul
theorem requires the weighted sum of the first partials of the function to
be equal to the original function times its degree of homogeneity.
