Glossary · Micro · Production and costs

Cobb-Douglas production function

The workhorse formula $Q = A K^{α} L^{β}$ , where output depends on capital $K$ and labor $L$ raised to fixed powers and scaled by technology $A$ . If the exponents add to one, returns to scale are constant.

Also called: Cobb-Douglas

Taught in: Cobb-Douglas Production

Related terms

Production function Returns to scale

More from production and costs

Average fixed cost (AFC)Average product of labor (APL)Average total cost (ATC)Average variable cost (AVC)Economies and diseconomies of scale Fixed cost (FC)Isoquant Law of diminishing marginal returns

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