Answer to Question #221307 in Microeconomics for kaumi

Question

The Cobb-Douglas production function is widely used in managerial economic and empirical analysis because it possesses several useful mathematical properties” As a manager of an organization, how you could apply Cobb-Douglas production function for decision making?

Answer 1

To determine how much output they should create given the price of a thing and what combination of inputs they should employ to produce given the price of capital and labor, as a manager, I would use the Cobb - Douglas production function. The production function can be used to detect rising marginal costs.