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Quantitative Business Analysis - the Cobb-Douglas production...


In economics, the Cobb-Douglas production function is widely used to represent the functional relationship between a country’s real output (GDP) with the inputs, namely Capital (K) and Labour (L). It is named after America economists Charles Cobb (1875 – 1949) and Paul Douglas (1892 -1976), who first tested this functional from against statistical evidence in the early twentieth century.