WOLFRAM|DEMONSTRATIONS PROJECT

Optimization of Cobb-Douglas Function

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method
contour plot
surface plot
total factor productivity
output elasticity of labor
output elasticity of capital
total cost
price of labor
price of capital
Using Lagrange multipliers, this Demonstration allows you to manipulate all aspects of both the Cobb–Douglas and isocost functions while viewing how this affects the allocation of labor and capital for optimal production. To show how the isoquant curve is truly three-dimensional, the Demonstration also displays the production function as a 3D surface plot.